ABC Inc. Is Considering A Project With An Initial Cost Of$1596. The Project Will
ABC Inc. is considering a project with an initial cost of$1596. The project will not produce any cash flows for the first four years. Starting in year five, the project will produce cash inflows of $630 a year for four years. If the discount rate of 9.8 percent, what is the project’s net present value?
The 2013 Income Statement Of Southern Products, Inc., Showed $2.7 Million EBIT, $520,000 Depreciation,
The 2013 income statement of Southern Products, Inc., showed $2.7 million EBIT, $520,000 depreciation, $300,000 interest expenses, and its tax rate is 34%. If the firm’s net capital spending for 2013 was $610,000, and the firm increased its net working capital investment by $20,000, find the firm’s 2013 cash flow from assets (CFFA). Do not include the $ sign or comma, and round it to a whole dollar, e.g., 2345 (for $2,345).
Broussard Skateboard’s Sales Are Expected To Increase By 25% From $7.8 Million In 2016
Broussard Skateboard’s sales are expected to increase by 25% from $7.8 million in 2016 to $9.75 million in 2017. Its assets totaled $4 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Do not round intermediate calculations. Round your answer to the nearest dollar.
Personal Finance For A $27,000 Student Loan With A 6% APR, How Much Of
Personal Finance For a $27,000 student loan with a 6% APR, how much of the payment will go toward the principal and how much will go toward paying interest for each of the first six payments? Assume this is a 10-year loan with monthly payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Payment Number Interest Paid Principal Paid
Garlington Technologies Inc.’s 2016 Financial Statements Are Shown Below: Balance Sheet As Of December
Garlington Technologies Inc.’s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $192,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 Sales $ Operating costs $ EBIT $ Interest $ Pre-tax earnings $ Taxes (40%) $ Net income $ Dividends: $ Addition to RE: $ Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 Cash $ Receivables $ Inventories $ Total current assets $ Fixed assets $ Total assets $ Accounts payable $ Notes payable $ Accruals $ Total current liabilities $ Common stock $ Retained earnings $ Total liabilities and equity $
3. Consider The Following Interest Rate Swap Scenario: Notional = $10 MM, Actual Days
3. Consider the following interest rate swap scenario: notional = $10 MM, actual days in quarter = 92, annualized floating rate = 2.5400%, and annualized fixed rate = 2.5400%. What is the floating leg payment? a. $62,088.89 b. $65,0911.89 c. $64,911.11 d. $127,000
Vintage, Inc. Has A Total Asset Turnover Of 0.68 And A Net Profit Margin
Vintage, Inc. has a total asset turnover of 0.68 and a net profit margin of 5.58 percent. The total assets to equity ratio for the firm is 1.7. Calculate Vintage’s return on equity.
4. The Credit Default Swap Spread Is: A. Agreed-upon At Initiation And Remains Fixed
4. The credit default swap spread is: a. agreed-upon at initiation and remains fixed during the tenor of the credit default swap b. agreed-upon at initiation and resets quarterly c. agreed-upon at initiation and resets semi-annually d. none of the above
Personal Finance 2nd. Edition: For The Below Question, Thank You So Much! I Have
Personal Finance 2nd. Edition: For the below question, Thank you so much! I have figured it out! For a $27,000 student loan with a 6% APR, how much of the payment will go toward the principal and how much will go toward paying interest for each of the first six payments? Assume is a 10-year loan with monthly payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) x Payment Number Interest Paid Principal Paid 1 $ 135.00 $ 164.00 2 $ 134.00 $ 165.00 3 $ 133.00 $ 167.00 4 $ 132.00 $ 168.00 5 $ 131.00 $ 169.00 6 $ 130.00 $ 170.00 Here is the explanation if you don’t mind! Explanation: Student Loan Loan Amount $ 27,000 Annual Interest Rate 6 (whole number) Payments per year 12 Number of Payments 120 Payment Amount $ 299.76 Payment Number Beginning Principal Amount Interest Paid Principal Paid Ending Principal Balance 1 $ 27,000.00 $ 135.00 $ 164.76 $ 26,835.24 2 $ 26,835.24 $ 134.18 $ 165.58 $ 26,669.67 3 $ 26,669.67 $ 133.35 $ 166.41 $ 26,503.26 4 $ 26,503.26 $ 132.52 $ 167.24 $ 26,336.02 5 $ 26,336.02 $ 131.68 $ 168.08 $ 26,167.94 6 $ 26,167.94 $ 130.84 $ 168.92 $ 25,999.03 Principal payments = $164.76 $165.58 $166.41 $167.24 $168.08 $168.92 = $1,000.97 Interest payments = $135.00 $134.18 $133.35 $132.52 $131.68 $130.84 = $797.56
5. To Which Of The Following Is A Protection Buyer Positively Sensitive? A.
5. To which of the following is a protection buyer positively sensitive? a. changes in the probability of a credit event b. changes in the recovery rate c. both a and b d. none of the above
Question 3 One Of The Important Insights Of The Modern Theory Of Finance Is
Question 3 One of the important insights of the modern theory of finance is that individual assets cannot be evaluated in isolation. True or false and why (explain in one short paragraph). mordern theiry of finance
Canadian Bacon Inc. Financial Statements Are Presented In The Table Below. Based On The
Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate Return on Assets. Round the answers to two decimal places in percentage form Balance Sheet December 31, 2012 Cash and marketable securities $198,000 Accounts payable $288,000 Accounts receivable $469,000 Notes payable $65,000 Inventories $577,000 Accrued expenses $84,000 Prepaid expenses $15,700 Total current liabilities $437,000 Total current assets $1,259,700 Long-term debt $237,000 Gross fixed assets $1,954,000 Par value and paid-in-capital $199,000 Less: accumulated depreciation $476,000 Retained Earnings $1,864,700 Net fixed assets $1,478,000 Common Equity 2,063,700 Total assets $2,737,700 Total liabilities and owner’s equity $2,737,700 Income Statement, Year of 2012 Net sales (all credit) $7,546,600.00 Less: Cost of goods sold $6,112,746.00 Selling and administrative expenses $349,000.00 Depreciation expense $145,000.00 EBIT $939,854.00 Interest expense $49,500.00 Earnings before taxes $890,354.00 Income taxes $356,141.60 Net income $534,212.40 Your Answer:
Vintage, Inc. Has A Total Asset Turnover Of 0.56 And A Net Profit Margin
Vintage, Inc. has a total asset turnover of 0.56 and a net profit margin of 4.25 percent. The total assets to equity ratio for the firm is 2.1. Calculate Vintage’s return on equity.
Personal Finance: Sometimes I’ll Figure These Math Problems Out, Then The Next I Am
Personal Finance: Sometimes I’ll figure these math problems out, then the next I am confused! Help with this please: I am just a bit confused not getting the APR: I have done the problem but still coming up with the wrong APR. Question: What was the APR on a $1,600 payday loan taken out for 30 days if your repayment on the loan cost you $1,750? (Assume 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) APR %
Suggest Possible Reasons For The Difference In The Operating Working Capital Turnover Of Gmart
Suggest possible reasons for the difference in the operating working capital turnover of Gmart and DJ, relating your reasons to the primary components of working capital.
Financial Market Commentators Often Argue That It Is Unwise To Invest In Commodities, As
Financial market commentators often argue that it is unwise to invest in commodities, as they historically have lower average returns and higher risk compared to equities. In light of this evidence discuss whether there is any justification for an investor with mean-variance utility preferences to invest in commodities as opposed to equities?
Information Text Use The Following Information For Questions 29 – 34, Each Question Is
Information text Use the following information for questions 29 – 34, each question is worth_________. Before attempting to answer the questions, set up an analysis based on the given information. Chilly Cloud Corporation (C3) operates several information technology hubs, including cloud storage, disaster recovery, and racks for lease to businesses needing additional space for their own IT needs. C3 is growing rapidly and anticipates adding 20,000 SF per year for the next five years. C3’s CFO, Dave, is analyzing several options for acquiring the expected space over the next five years. There are many options; first, they could build a new building to add the expected space needed, second, they could build a new corporate office which would include the existing corporate needs as well as the expected space anticipated to be needed. Both of these options could be expanded to buying and renovating existing buildings. In addition, C3 has the option to lease property in increments that enable them to move into the needed space as the growth occurs. The rates will vary according to when and for how long they decide to lease. Also, the location could vary if it is financially advantageous and not disruptive to the operation. They also have an option to build to suit on one of the sites that are also available for construction of an owned building. C3 currently occupies 80,000 square feet in a building they own. There is no space available to expand, so in every option, C3 must dispose of the existing property or operate from multiple locations. The expected market value of the existing property is $7.2 million. The basis in the property is $2.7 million and C3 is in a 21% tax bracket. C3 wants Class A property as part of the brand they are projecting. Construction rates are between $85-115 per square foot, including property, to build before tenant finishes above standard. Lease rates are between $21-27 per square foot to lease, again at standard finishes. C3 estimates that they will spend $1.25-1.5 million on upgrades or tenant finishes in any scenario. Assuming a five-year horizon, answer the following questions with the information provided. Do not forget the tax effect on the cashflow of periodic rent and mortgage payments when calculating present values. Question 29 Given the facts above and that the expected selling expenses would be 8% of the selling price; what is the expected net cash from sale? Select one: a. $6.624.000 b. $3,924,000 c. $5,799,960 d. $6,375,960 e. None of the above Question 30 Assuming a weighted average cost of capital of 23%, what is the present value of the after-tax cash flow required, exclusive of the tenant improvements, on a five-year lease for 180,000 square feet (projected total required over five-year period) at a rate of $22.50 per square foot annually? Assume payments are made monthly. Select one: a. $8,969,713. b. $9,457,983 c. $15,997,500 d. $7,192,825 e. None of the above Question 31 Answer saved Points out of 5.0 Flag question Question text Assume C3 has the opportunity to execute a lease with options to add 20,000 SF over each of the next four years; however, to do that they would have to agree to bumps in rent of $.75 per SF annual rent on the entire leased space. Assuming no additional moving costs or other logistical issues, how much would they save in gross rent? Select one: a. $3,300,000 b. $2,718,655 c. $2,514,560 d. $6,020,661 e. None of the above Question 32 Answer saved Points out of 5.0 Flag question Question text Assume the WACC is 23% and payments are made monthly. What is the present value of the after-tax cash flow required for the modified lease option with incremental increase in space and rent describe in the question above? Select one: a. $7,192,825 b. $7,310,243 c. $8,839,506 d. $6.020.661 e. None of the above Question 33 Answer saved Points out of 5.0 Flag question Question text If C3 elects to build, using the median construction cost estimate ($100/SF), compute the net present value assuming the building will be occupied simultaneously to the sale of the existing building in one year. Include the cost of a construction loan at 6.5% annual interest rate, with construction draws commencing in 3 months and being incurred evenly over the remaining 9 months. Assume the construction loan agreement requires C3 to put the first 25% estimated construction costs into the project before the draws can be made and interest to be rolled into the loan monthly. Assume C3 expects to convert the 75% construction loan into a five-year term loan with monthly payment of principal and interest amortized over 20 years at 6.5%. Assume a sale at the end of five years at a compound 3% increase in value. Depreciation on the building is calculated at 39 years and selling costs are estimated to be 8%. C3 intends to withdraw the equity paid from operating cashflow from the proceeds of the sale and net the balance against the required loan. What is the net present value of the of cash flows for the acquisition/construction of the building? Select one: a. $5,682,854 b. $7,192,825 c. $6,020,661 d. $8,544,415 e. None of the above Question 34 Answer saved Points out of 5.0 Flag question Question text Using the information above, including the previous question, what is the present value of the sale of the new building, discounted at the WACC (23%), assuming it occurs at the and of the fifth year. Select one: a. $5,799,960 b. $6,020,661 c. $2,944,941 d. $2,827,835 e. None of the above
American Bacon Inc. Financial Statements Are Presented In The Table Below. Based On The
American Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate Return on Assets. Round the answers to two decimal places in percentage form. Balance Sheet December 31, 2010 Cash and marketable securities $102,000 Accounts payable $287,000 Accounts receivable $299,000 Notes payable $61,200 Inventories $628,000 Accrued expenses $51,900 Prepaid expenses $10,300 Total current liabilities $400,100 Total current assets $1,039,300 Long-term debt $415,000 Gross fixed assets $1,502,000 Par value and paid-in-capital $376,000 Less: accumulated depreciation $312,000 Retained Earnings $1,038,200 Net fixed assets $1,190,000 Common Equity 1,414,200 Total assets $2,229,300 Total liabilities and owner’s equity $2,229,300 Income statement, Year of 2010 Net sales (all credit) $6,387,700.00 Less: Cost of goods sold $4,726,898.00 Selling and administrative expenses $345,000.00 Depreciation expense $148,000.00 EBIT $1,167,802.00 Interest expense $50,600.00 Earnings before taxes $1,117,202.00 Income taxes $446,880.80 Net income $670,321.20 Your Answer:
What Is The Profitability Index Of A Project With The Following Cash Flows If
What is the profitability index of a project with the following cash flows if the discount rate is 16 percent? Year CFs 0 -579 1 122 2 281 3 210 4 370
Starware Software Was Founded Last Year To Develop Software For Gaming Applications. The Founder
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $ 800 comma 000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $ 1.00 million and wants to own 20 % of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 20 % of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)? a. How many shares must the venture capitalist receive to end up with 20 % of the company? What is the implied price per share of this funding round? The venture capitalist will receive ___ million shares. (Round to three decimal places.) The implied price per share is $ ___ per share. (Round to the nearest cent.) b. What will the value of the whole firm be after this investment (the post-money valuation)? The value of the firm will be $ ___ million. (Round to three decimal places.)
Your Firm Is Considering Two One-year Loan Options For A $ 489 Comma 000
Your firm is considering two one-year loan options for a $ 489 comma 000 loan. The first carries fees of 2 % of the loan amount and charges interest of 3.7 % of the loan amount. The other carries fees of 1.8 % of the loan amount and charges interest of 4.5 % of the loan amount. a. What is the net amount of funds from each loan? b. Based on the net amount of funds, what is the true interest rate of each loan?
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