The Company, Produce In-house In The US; The Cost Of Equipment Totals Into 32.5

The company, produce in-house in the US; The cost of equipment totals into 32.5 million at the start of the first year. Which will have a salvage value of 3 million at the end of 6 years. After a recent area 51 raid, the company acquired a team of Area 51 aliens with an annual demand of 500,000. The operational costs and software maintenance is 700,000 annually. As the years go by, an inflation of 16% will demand increasing prices for these values. What will be the net present worth?

Hi, I Have Prepared The Balance Sheet Below For Bank Of America. Please Help

Hi, I have prepared the balance sheet below for Bank of America. Please help me do parts a, b and c in excel. Prepare a balance sheet analysis of the bank, comparing 2007 Balance Sheet $ values to the most recently published Balance Sheet (either 2017 or 2018). Be sure to include the following items, in Excel spreadsheet format: a. % change in total assets, liabilities, and equity positions over this period b. Past and current leverage position of the investment bank, and % change over this period c. Comparison of book to market value of the bank, 2007 to current value Bank of America Balance Sheet Years ended 2018-31-12 and 2007-31-12 Annual Data (Millions of US $ except per share data) Period Ending 2007-31-12 2018-31-12                 Cash on Hand 345,920 660,377                 Notes and Loans Receivable 899,180 1,013,475                 Inventory – –                 Other Current Assets – – Total Current Assets 1,245,100 1,673,852                 Property, Plant and Equipment 11,240 9,906                 Long-term Investments 214,056 441,753                 Goodwill and Intangible Assets 91,173 68,951                 Other Long-term Assets 154,177 160,045 Total Long-Term Assets 470,646 680,655 Total Assets 1,715,746 2,354,507                 Total Current Liabilities 1,249,012 1,821,951                 Long Term Debt 197,508 229,340                 Other Non-Current Liabilities 22,423 37,891 Total Long-Term Liabilities 219,931 267,231 Total Liabilities 1,324,465 2,089,182                 Common Stock Net 60,328 118,896                 Retained Earnings (Accumulated Deficit) 81,393 136,314                 Comprehensive Income 1,129 -12,211                 Other Share Holders Equity -456 – Share Holder Equity 146,803 265,325 Total Liabilities and Share Holders Equity 1,715,746 2,354,507 2018 Market value =24.6400 2007  Market value =34.9535

You Have A 25-year Maturity, 10.4% Coupon, 10.4% Yield Bond With A Duration Of

You have a 25-year maturity, 10.4% coupon, 10.4% yield bond with a duration of 10 years and a convexity of 135.9. If the interest rate were to fall 129 basis points, your predicted new price for the bond (including convexity) is

QUESTION: Please Share The Functions For How D1 And D2 Are Calculated In Excel

QUESTION: Please share the functions for how d1 and d2 are calculated in excel for the problem below: Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments. Its current value of operations, which is also its value of debt plus equity, is estimated to be $200 million. Higgs has $110 million face value, zero coupon debt that is due in 3 years. The risk-free rate is 5%, and the standard deviation of returns for similar companies is 60%. The owners of Higgs Bassoon view their equity investment as an option and would like to know the value of their investment. a. Using the Black-Scholes Option Pricing Model, how much is the equity worth?

. MGM Co Has Decided To Sell A New Line Of Golf Clubs. The

. MGM Co has decided to sell a new line of golf clubs. The clubs will sell for $850 per set and have a variable cost of $400 per set. The company has spent $300,000 for a marketing study that determined the company will sell 68500 per year for seven years. The marketing study also determined that the company will lose sales of 12,400 sets of its high-priced clubs. The high-priced clubs will sell at $1200 and a variable cost of $660. The company will also increase sales of its cheap clubs by 14,400 sets. The cheap clubs sell for $420 and have a variable cost of $210 per set. The fixed cost each year will be $10400,000. The company has also spent $2,500,000 on research and development for the new clubs. The plant and equipment required will cost $38,500,000 and it will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $2900,000 that it will be returned at the end of the project. The tax rate is 21 percent and the cost of capital is 12 percent. Suppose that you feel that the values are accurate to within only ± 10 percent. What are the best-case and worst-case NPV”s?(hint: The price and variable cost for the two existing set of clubs are known with certainty; only the sales gained or lost are uncertain)

You Write One IBM July 121 Call Contract For A Premium Of $3. You

You write one IBM July 121 call contract for a premium of $3. You hold the option until the expiration date, when IBM stock sells for $123 per share. You will realize a ______ on the investment.

The Current Stock Price Of Johnson

The current stock price of Johnson

Suppose A Firm Just Paid A Dividend Of 5$ Per Share. We Expect The

Suppose a firm just paid a dividend of 5$ per share. We expect the firm to grow at a rate of 14% for thee years. after which it will grow at 8% forever. the required return is 10% and the current stock price is 100$. 1. What is the intrinsic value (present value) of stock? 2. Should you buy the stock? Why?

Company Has Announced It Will Pay A Dividend Of $4.55 Per Share One Year

Company has announced it will pay a dividend of $4.55 per share one year from today. Additionally, the company expects to increase its dividend by 3.4% annually. The required return on the company’s stock is 12.2%. What is the current share price?

A Portfolio Generates An Annual Return Of 12.5%, A Beta Of 0.7, And A

A portfolio generates an annual return of 12.5%, a beta of 0.7, and a standard deviation of 16.5%. The market index return is 13.5% and has a standard deviation of 19.5%. What is the M2 measure of the portfolio if the risk-free rate is 5%?

1. Kenny Inc. Has The Following Income Statement For The Most Recent Fiscal Year:

1. Kenny Inc. has the following income statement for the most recent fiscal year: Sales $558.400 Costs 346,800 Depreciation 94,500 EBIT $117100 Taxes (35%) $40985 Net Income $76115 Assume an equipment costs $960,000 and depreciated to zero on a straight-line method over its 8-year tax life. If the equipment can be sold for $18,500 at the end of a five-year project, what is the after tax salvage value (net salvage value) of the equipment?

 Alexis Company Uses 979979 Units Of A Product Per Year On A Continuous Basis.

 Alexis Company uses 979979 units of a product per year on a continuous basis. The product has a fixed cost of ​$4242 per​ order, and its carrying cost is ​$44 per unit per year. It takes 5 days to receive a shipment after an order is​ placed, and the firm wishes to hold 10​ days’ usage in inventory as a safety stock. a.  Calculate the EOQ. b.  Determine the average level of inventory.   ​(Note​:   Use a​ 365-day year to calculate daily​ usage.) c.  Determine the reorder point. d.  Indicate which of the following variables change if the firm does not hold the safety​ stock: (1) order​ cost, (2) carrying​ cost, (3) total inventory​ cost, (4) reorder​ point, (5) economic order quantity. a. ​ Alexis’ EOQ is nothing units.  ​(Round to the nearest whole​ number.)

The Risk-free Rate, Average Returns, Standard Deviations, And Betas For Three Funds And The

The risk-free rate, average returns, standard deviations, and betas for three funds and the S

Determine When A Firm Must Pay For Purchases Made And Invoices Dated On June

Determine when a firm must pay for purchases made and invoices dated on June 19 under the following credit​ terms: net 4545 EOMEOM. What is the payment​ date?  ​(Select the best answer​ below.) A. August 3August 3 B. August 14August 14 C. August 18August 18 D. August 29August 29

Early Payment Discount Versus Loan   Joanne Germano Works In An Accounts Payable Department Of A

Early payment discount versus loan   Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the 2 divided by 15 net 302/15 net 30 credit terms most suppliers​ offer, but her boss argues that giving up the 22​% discount is less costly than a​ short-term loan at 1010​%. Prove to whoever is wrong that the other is correct.   ​(​Note:   Assume a​ 365-day year.) The cost of giving up the cash discount is _____ ​%

When Waverly​ Wear, Inc., Merged With​ Southerly, Inc.,​ Waverly’s Employees Were Switched From A

When Waverly​ Wear, Inc., merged with​ Southerly, Inc.,​ Waverly’s employees were switched from a weekly to a biweekly pay period. ​ Waverly’s weekly payroll amounted to $386,800. The cost of funds for the combined firms is 11.69​%. What annual​ savings, if​ any, are realized by this change of pay​ period? The annual savings that the firm can realize is ​$______. ​(Round to the nearest​ dollar.)

 Data​ Back-Up Systems Has Obtained A ​$11,000​, 120-day Bank Loan At An Annual Interest

 Data​ Back-Up Systems has obtained a ​$11,000​, 120-day bank loan at an annual interest rate of 11​%, payable at maturity.   ​(​Note:   Assume a​ 365-day year.) a.  How much interest​ (in dollars) will the firm pay on the 120-day ​loan? b.  Find the 120​-day rate on the loan. c.  Annualize your result in part b to find the effective annual rate for this​ loan, assuming that it is rolled over every 120 days throughout the year under the same terms and circumstances. a.  The amount of interest on the loan is ​$______ . ​ (Round to the nearest​ cent.)

Commercial Paper Is Usually Sold At A Discount. Fan Corporation Has Just Sold An

Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 90​-day commercial paper with a face value of ​$1.4 million. The firm has received initial proceeds of ​$1,360,314. ​ (Note​: Assume a 365-day ​year.) a.  What effective annual rate will the firm pay for financing with commercial​ paper, assuming that it is rolled over every   90 days throughout the​ year? b. If a brokerage fee of ​$13,545 was paid from the initial proceeds to an investment banker for selling the​ issue, what effective annual rate will the firm​ pay, assuming that the paper is rolled over every 90 days throughout the​ year? a. The effective annual rate the firm will pay for financing with commercial​ paper, assuming that it is rolled over every 90 days throughout the​ year, is ______ ​%. ​(Round to two decimal​ places.)

3. Jaylin Makes A 25-year Loan Of 150,000 To Susan. Susan Needs To Repay

3. Jaylin makes a 25-year loan of 150,000 to Susan. Susan needs to repay this loan by level end of year payments R. Jaylin will replace her capital via a savings account which offers annual effective interest rate 6% and earn an APY of 4%. Find R.

What Is The Annual Operating Cash Flow Of The New Alarm​ Systems? (Round To

What is the annual operating cash flow of the new alarm​ systems? (Round to the nearest​ dollar.) What is the​ after-tax cash flow of the alarm systems at​ disposal? (Round to the nearest​ dollar.) What is the NPV of the new alarm​ syatems? ​(Round to the nearest​ dollar.) Should Huffman Systems add the new home alarm systems to its set of​ products?  ​(Select the best​ response.) A. ​No, because the NPV is negative which means the projected annual rate of return on the project is less than the cost of capital. B. ​Yes, because the project will generate enough wealth to give investors an adequate yield

Morris-Meyer Mining Company Must Install $1.4 Million Of New Machinery In Its Nevada Mine.

Morris-Meyer Mining Company must install $1.4 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the required amount. Alternatively, a Nevada investment banking from that represents a group of investors believes that it can arrange for a lease financing plan. Assume that the following facts apply: The equipment falls in the MACRS 3-year class. The applicable MACRS rates are 33%, 45%, 15%, and 7%. Estimated maintenance expenses are $65,000 per year. Morris-Meyer’s federal-plus-state tax rate is 45%. If the money is borrowed, the bank loan will be at a rate of 14%, amortized in 4 equal installments to be paid at the end of each year. The tentative lease terms call for end-of-year payments of $300,000 per year for 4 year. Under the proposed lease terms, the lessee must pay for insurance, property taxes, and maintenance. The equipment has an estimated salvage value of $300,000, which is the expected market value after 4 years, at which time Morris-Meyer plans to replace the equipment regardless of whether the firm leases or purchases it. The best estimate for the salvage value is $300,000, but it may be much higher or lower under certain circumstances. To assist management in marking the proper lease-versus-buy decision, you are asked to answer the following questions. Assuming that the lease can be arranged, should Morris-Meyer lease or borrow and buy the equipment? Explain. Round your answer to the whole number. Net advantage to leasing (NAL) is $ . (Input the minus sign if the cost of leasing the machinery is more than the cost of owning it.)

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