(1) You are evaluating shares in Chevron (CVX). They expect to pay an annual dividend of $8.00 per share next year and expect to increase that by 4% every year. If you use a discount rate of 10%, what is the value of the shares?

I got 104, but it's wrong

(2) You are evaluating shares in Ford Motor (F). They expect to pay an annual dividend of $10.50 per share next year and expect to increase that by 2% every year. If you use a discount rate of 10%, what is the value of the shares?

I got 133.86, but that was wrong

(3) You are evaluating shares in Lyft (LYFT). They currently pay an annual dividend of $10.00 per share this year but expect to increase this payout by 10% next year and the following year. Then, as the company matures, it expects that dividends will only grow by 5% per year thereafter. If you use of discount rate of 20%, what is the value of the shares?

I got 61.65, but wrong

(4) You are evaluating shares in Schlumberger (SLB). They currently pay an annual dividend of $5.50 per share this year but expect to increase this payout by 5% next year and the two following years. Then, as the company matures, it expects that dividends will grow by 2% per year thereafter. If you use of discount rate of 12%, what is the value of the shares?

I got 53.03, but wrong

Any help with these problems?

Calculate the NPV for each project and determine which project should be accepted.

Your company is considering three independent projects. Given the following cash flow information, calculate the payback period for each. If your company requires a three-year payback before an investment can be accepted, which project(s) would be accepted?

Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.

Depreciation by Two Methods; Sale of Fixed Asset

New tire retreading equipment, acquired at a cost of $812,500 on September 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.

In the first week of the fifth year, on September 6, the equipment was sold for $119,000.

Required:

1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight-line method

b. Double-declining-balance method

2. Journalize the entry to record the sale, assuming double-declining-balance method is used. If an amount box does not require an entry, leave it blank.

3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $102,100 instead of $119,000. If an amount box does not require an entry, leave it blank.

XYZ, Inc. is considering a 5-year project. The production will require $1,500,000 in net working capital to start and addition net working capital investments each year equal to 15% of the projected sales increase for the following year. Total fixed costs are $1,350,000 per year, variable production costs are $225 per unit, and the units are priced at $345 each. The equipment needed to begin production has an intalled cost of $23,000,000. The equipment is qualified as seven-year MACRS property. MACRS stands for Modified Accelerated Cost Recovery System, where businesses apply MACRS rates to the capital expenditure for annual depreciation amount. In five years, this equipment can be sold for about $4,600,000. The company is in the 35% marginal tax bracket and has a required rate of return on all its projects of 18%. Projected Unit Sales Year 1 - 80000 Year 2 - 85000 Year 3 - 90000 Year 4 - 95000 Year 5 - 95000 What would the depreciation,EBIT, Taxes, and NI estimation table for years 1-5?

Input Area                              
Year   1   2   3   4   5   6   7   8
Projected unit sales   80,000   85,000   90,000   95,000   95,000   0   0   0
                              
MACRS Rates   14.29%   24.49%   17.49%   12.49%   8.93%   8.92%   8.93%   4.46%

Sugar Land Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by a MBA student. The production line would be set up in unused space (Market Value Zero) in Sugar Land’ main plant. Total cost of the machine is $350,000. The machinery has an economic life of 4 years and will be depreciated using MACRS for 3-year property class. The machine will have a salvage value of $35,000 after 4 years.

The new line will generate Sales of 1,750 units per year for 4 years and the variable cost per unit is $110 in the first year. Each unit can be sold for $210 in the first year. The sales price and variable cost are expected to increase by 3% per year due to inflation. Further, to handle the new line, the firm’s net working capital would have to increase by $30,000 at time zero (No change in NWC in years 1 through 3 and the NWC will be recouped in year 4). The firm’s tax rate is 40% and its weighted average cost of capital is 11%.

Estimate annual (Year 1 through 4) operating cash flows

Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $9,500. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,200 hours; year 2, 2,300 hours; year 3, 2,400 hours; year 4, 2,100 hours; and year 5, 1,000 hours.

Assume NGS sold the hydrotherapy tub system for $2,850 at the end of year 3.The following amounts were forecast for year 3: Sales Revenues $43,000; Cost of Goods Sold $34,000; Other Operating Expenses $4,300; and Interest Expense $900. Create an income statement for year 3 for each of the different depreciation methods, ending at Income before Income Tax Expense. (Don't forget to include a loss or gain on disposal for each method.).

Save the Turtles is a non-for-profit organization that was incorporated in 20X0 and has a December 31 year end. Save the Turtles had the following transactions during 20X0.

1. Volunteers donated $20,000 in time to help with answering the phones, mailing materials, and other clerical activities.
2. A business donated rent-free office space to the organization that would normally rent for $35,000 per year.
3. Office furniture worth $10,600 and with an estimated 10-year life was donated to the organization.
4. A fund drive raised $215,000 in cash and $100,000 in pledges that will be paid within one year. A state government grant of $50,000 was received for program operating costs.
5. Save the Turtles paid salaries and fringe benefits of $208,560 during the year and had $22,400 of accrued salaries and benefits at the end of the year.
6. Utilities expense for the year totaled $8,300 and other expenses for the year included $5,600 for telephone, $4,300 for supplies, and $14,200 for printing. There were no supplies remaining at the end of the year and accounts payable totaled $4,400.
7. Office equipment with a useful life of 5 years was purchased for $12,000.
8. The organization claims a full year of depreciation on fixed assets.
9. Ninety percent of pledges for 20X1 are estimated to be collectible.
10. Expenses were allocated to program services and support services in the following percentages: Public education—45%, Veterinary services—20%, Management and general—20%, Fundraising—15%.

Required.

• Prepare a schedule of expenses by nature and function for the year ended December 31, 20X0.

Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on January 1 of this year is $155 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $515 per unit, in real terms, and will not change over the life of the project. Labor costs for Year 1 will be $15.65 per hour, in real terms, and will increase at 2 percent per year in real terms. Energy costs for Year 1 will be $3.80 per physical unit, in real terms, and will increase at 3 percent per year in real terms. The inflation rate is 4 percent per year. Revenues are received and costs are paid at year-end. Refer to the following table for the production schedule:

The real discount rate for the company is 3 percent.

Calculate the NPV of this project. (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.)

NPV           $

2 MULTIPLE CHOICE. PLEASE ANSWER ASAP. THANK YOU!

28. Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)?

a.4.2

b.13

c.18.1

d.5.2

29. Use this information for Kellman Company to answer the question that follow.

The balance sheets at the end of each of the first two years of operations indicate the following:

Using the balance sheets for Kellman Company, if net income is $104,500 and interest expense is $36,100 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

a.6.56%

b.4.60%

c.7.58%

d.9.46%

1. O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $875. What is the bond's coupon interest rate?

2. Stocks X just paid a dividend of $1 and a has a dividend growth rate of 10 percent. If the required rate of return is 20 percent, what is the value of the stock in one year?

3. The price of Natter Corporation’s stock is $50. The stock’s dividend is expected to grow at a constant rate of 8 percent, and it just paid a dividend of $2. What is the stock's expected rate of return?

4. Assume you think the expected rate of return is too low. What should you do?

Group of answer choices

Sell the stock if you own it.

Not enough information to say.

Do nothing

Buy the stock.

5. Assume a firm's WACC is 10 percent. Calculate the NPV for the following project if its cost was $8,000 and the annual expenditures and costs were:

6. Calculate the IRR for the following project if its cost was $8,000 and the annual expenditures and costs were: