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Issuance costs are $500,000, the bond has a 9.25% annual coupon, and the bond has a 20-year life. Which alternative has the lower cost (annual percentage yield)?
What cost of capital would you recommend the managers use to evaluate the proposed capital budgeting project?
Based on Cost and Price analysis for contractors, subcontractors, and government agencies:Describe the impact of the solicitation process and how it determines the preparation of your bid.
Abbreviated financial statements for Archimides Levers. If sales increase by 10% in 2011 and all other items, including debt, increase correspondingly, what must be the ballancing item? What will be
The project is estimated to generate $2,650,000 in annual sales, with costs of $840,000. If the tax rate is 35%, what is the OCF for this project?
If the plant has projected net income of $1,735,000, $2,105,000, $1,954,000, and $1,286,000 over these four years, what is the project's average accounting return (AAR)?
The pretax cost of debt for a similar nonrated firm is 10%. No adjustment is made in the calculation of the cost of equity for a marketability discount. What is the shareholder value of the firm?
If you had invested $50,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Why?
What is the old equipment value at T0, the amount kept after the sale of the old equipment at T0, net outflow at T0, new equipment book value at T6, net cash flow amounts at T1, T2, T3, T4, T5 and T
Suppose an investment offers to triple your money in 72 months. What rate of return are you being offered? 5.15%, 4.22%, 6.29%, 4.68%, 3.51%?
Whats the maximum constant amount she can withdrawal for each of the remaining 28 yrs. starting in 2033 if the interest rate remains at a true 6%.
You expect to receive $11,000 at graduation in two years. You plan on investing at 12 percent until you have $97,000. How long will you wait from now? (Do not round the intermediate calculations)? 1
In addition, your grandfather just gave you a $25,000 graduation gift which you will deposit immediately (t = 0). If the account earns 9% compounded annually, how much will you have when you start y
Is there an easily identifiable debt-equity ratio that will maximize the value of affirm? Why or Why not?
Suppose that a firm wishes to maintain a capital structure that is consistent with an A senior debt rating. Under what circumstances would the firm maintain a lower degree of leverage than a cross s
The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of + 3 percent. What is the WACC it should use for the project?
The H.R. picket corp has 500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are 2 million, its average tax rate is 30% and its profit margin is 5%. what is the
What is the present value of your windfall if the appropriate discount rate is 9 percent?
What is the difference in the effective annual rates charged by the two banks?
Assume that the only service performed is the giving of tattoos, whose unit price is $12. Find the contribution margin per tattoo.
The firm also estimates the project will require an additional 7000 a year in current assets for each one of the four years of the project. How much net working capital will the firm recapture?
To offset your overhead, you want to charge your customers an EAR (or EFF%) that is 2% more than the bank is charging you. What APR rate should you charge your customers?
Expected cash dividends are $2.50, the dividend yield is 6%, flotation costs are 4% of price, and the growth rate is 3%. Compute cost of new common stock.
you(and the market) have expectations that in 5 years the YTM on a 15 year bond with similar risks will be 8.5%. How much should you be willing to pay for bond x today?
How much money do you need to put in a money market fund today earning a nominal 6% a year to fund your literature expenses a) forever and b) for the next 6 years?