Pearl Corp. is expected to have an EBIT of $2,900,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $130,000, and $170,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $15,000,000 in debt and 1,300,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.5 percent and the tax rate is 21 percent

What is the price per share of the company's stock

Share price?

Consider a project with an initial investment of $60,000, a 6 year usefule life (and study period), and a $10,000 salvage value. You expect an annual net revenue of $15,000 (before tax), a MARR before tax of 15.3%, and an effective tax rate of 35%. The capital equipment is to be depreciated using MACRS GDS and a 3 year class life. Develop the after-tax cash flows and draw the cash flow diagram

A stock pays an annual dividend of $8.4 in one year time. The dividend is expected to increase by 7% per year (roughly the inflation rate) forever. The price of the stock is $73 per share. At what cost of capital is this stock priced?

Select one:

a. The cost of capital is 18.51%

b. The cost of capital is 19.51%

c. The cost of capital is 17.51%

d. The cost of capital is 19.01%

You are on the audit team of Apollo Shoes, Inc. for the year ending December 31, 2015 and your manager has asked you to prepare a draft of the engagement letter
Some things to note:

All pre-engagement activities have been completed

They are a public entity

Mr. Larry Lancaster is the president and chairman of Apollo Shoes Board of directors

Instructions: Prepare the draft engagement letter

Write a C# program that prints a calendar for a given year. Call this program calendar. The program prompts the user for two inputs:
      1) The year for which you are generating the calendar.
      2) The day of the week that January first is on, you will use the following notation to set the day of the week:
    
      0 Sunday                     1 Monday                   2 Tuesday                   3 Wednesday
      4 Thursday                 5 Friday                      6 Saturday

Your program should generate a calendar similar to the one shown in the example output below. The calendar should be printed on the screen. Your program should be able to handle leap years. A leap year is a year in which we have 366 days. That extra day comes at the end of February. Thus, a leap year has 366 days with 29 days in February. A century year is a leap year if it is divisible by 400. Other years divisible by 4 but not by 100 are also leap years.

Example: Year 2000 is a leap year because it is divisible by 400.  Year 2004 is a leap year because it is divisible by 4 but not by 100.
Your program should clearly describe the functionality of each function and should display the instructions on how to run the program.

Your need to create one method “displayMonth” for print each month as required. You can choose return method or not that depend on your design.

Sample Input:

Enter the year for which you wish to generate the calendar: 2004
Enter the day of the week that January first is on: 4

Sample output:

Calendar for year 2004

January
Sun      Mon     Tue      Wed     Thu      Fri        Sat
                                                1          2          3
4          5          6          7          8          9          10
11        12        13        14        15        16        17
18        19        20        21        22        23        24
25        26        27        28        29        30        31

February
Sun      Mon     Tue      Wed     Thu      Fri        Sat
1          2          3          4          5          6          7
..         ..          ..          ..          ..          ..          ..
..          ..

A company releases outstanding earnings numbers and raises guidance for the next fiscal year, and the stock price as a result jumps up 20%, then it is optimal to convert a convertible bond on this company into stocks right away. Assume that the stock pays no dividend.

The company is considering a five-year project that will require $680,000 for new manufacturing equipment that will be depreciated straight-line to a zero-book value over five years (depreciation rate is 20% per year). At the end of the project, the equipment can be sold for 15 percent of its original cost. The project requires an initial investment in net working capital of $90,000 (all of which will be recovered at the end of the project). The project is expected to generate annual sales of $845,000 with annual costs of $545,000. The tax rate is 25 percent and the required rate of return is 17.5 percent. Instructions: Complete the pro forma and determine total cash flows for each year of project’s life. Calculate initial outlay (total cash flow in Year 0), after-tax salvage value in Year 5, and NPV of the project. Explain your decision whether you recommend to accept or reject the project.

Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $119,000. The machine’s estimated useful life at the time of the purchase was five years, and its residual value was $9,000. The company reports on a calendar year basis.

Required:
a-1. Prepare a complete depreciation schedule, beginning with the current year, using the straight-line method. (Assume that the half-year convention is used).

a-2. Prepare a complete depreciation schedule, beginning with the current year, using the 200 percent declining-balance method. (Assume that the half-year convention is used).

a-3. Prepare a complete depreciation schedule, beginning with the current year, using the 150 percent declining-balance, switching to straight-line when that maximizes the expense. (Assume that the half-year convention is used).

b. Which of the three methods computed in part a is most common for financial reporting purposes?

c. Assume that Swanson & Hiller sells the machine on December 31 of the fourth year for $29,500 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a.