Question

F.E 21. A firm is buying a new equipment that has the following cash flows: Year...

F.E

21. A firm is buying a new equipment that has the following cash flows:

Year

0

1

2

3

Cash Flow

($392)

$100

$200

$397

What is the NPV if the interest rate is 4%?  Answer to the nearest cent as in xx.xx  without entering the dollar sign.

22. What would be the component cost of debt estimated from a ten year bond bond with face value of $1,000 and selling for $1,000 with annual coupons of 10% paid annually and with a tax rate of 43%? Answer as a percentage to the nearest hundredth as in xx.xx and without the percentage sign.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Q6 3.What would be the component cost of debt estimated from a ten year bond bond...
Q6 3.What would be the component cost of debt estimated from a ten year bond bond with face value of $1,000 and selling for $1,000 with annual coupons of 14% paid annually and with a tax rate of 36%? Answer as a percentage to the nearest hundredth as in xx.xx and without the percentage sign. 4.Suppose the risk free rate is 5.3% and the expected rate of return to the market is 10.6%. If the stock's beta is 0.6, what...
F.E 3. A firm is considering a project that has the following cash flow data. What...
F.E 3. A firm is considering a project that has the following cash flow data. What is the project's payback ?  Answer in years to the nearest hundredth as in xx.xx. Year 0 1 2 3 4 5 Cash flows -$975 $300 $310 $320 $68 $97 4. If you deposit $25,000 in a saving account paying 2.5% per year, how much will you have after 5 years if the bank promises annual compounding? Round your answer to the nearest cent (xxxxx.xx)...
Q4 5.What is the price of a zero-coupon 24-year maturity bond per face (par) value of...
Q4 5.What is the price of a zero-coupon 24-year maturity bond per face (par) value of $1,000 if the annual market rates for these bonds are 5.9%? Answer to the nearest cent, xxx.xx and enter without the dollar sign. 6.A firm's stock has 50% chance of a 8% rate of return and a  50% chance of a 23% rate of return. What is the standard deviation of return for this stock? Answer as a percent return  to the nearest hundredth of a...
F.E 9.If your stock pays a dividend D0 = $0.75 at t = 0.and will experience...
F.E 9.If your stock pays a dividend D0 = $0.75 at t = 0.and will experience a constant growth of 6.4 percent forever into the future, what should be the price of the stock if the required return for such stocks is 10.5 percent? Note: The dividend shown above is at t = 0, not t=1.    Answer to the nearest cent, xxx.xx and enter without the dollar sign. 10.What is the price of a 13-year bond paying 9.5% annual coupons with...
F.E 5. A firm with $3 million  EBIT, $0.7 million depreciation, a tax rate of .4, a...
F.E 5. A firm with $3 million  EBIT, $0.7 million depreciation, a tax rate of .4, a capital expenditure of $0.8 million, and an increase in NOWC of $1.1 million will have a free cash flow of what amount for the year? Please answer in units of million dollars to the closest tenth of a million as in $x.x million without entering the dollar sign or the million word.   6. How much is the present value of an annuity of $3,000...
F.E 23. In your two-stock portfolio, you invest $25 in stock A and $75 in stock...
F.E 23. In your two-stock portfolio, you invest $25 in stock A and $75 in stock B. If the beta of stock A is 1.26 and the beta of stock B is 0.6, your portfolio beta will be: Input your answer two places to the right of the decimal point as in x.xx 24.What is the price of a 6-year bond paying an annual coupon rate of 7.9%, but paying it semiannually, per face (par) value of $1,000 if the...
A zero is priced at $589. It has 8 years to the maturity. What is the...
A zero is priced at $589. It has 8 years to the maturity. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include the percent sign in your answer. (For example, if your answer is 5.67%, type 5.67 without % sign) What is the price of a $1,000 par value bond with an 8% coupon rate paid annually, and 6 years to maturity if the bond is currently sold at the yield-to-maturity...
Question 1 For an all equity firm with a total asset turnover of 1, what profit...
Question 1 For an all equity firm with a total asset turnover of 1, what profit margin would achieve a target ROE of 0.12? Convert the profit margin rate to a percent and report it to the nearest hundredth as in xx.xx % but not entering the percent sign. You would need to calculate the rate to four places before multiplying by 100 to convert to a percent. Question 2 A balance sheet shows current assets as $5,850, accrued wages...
MT 5) If someone will pay you 100 dollars in 19 years and interest rate is...
MT 5) If someone will pay you 100 dollars in 19 years and interest rate is estimated to be 7.2% over those years, what is the estimated value of that cash flow? Provide answer to the nearest cent, xxx.xx, and enter without a dollar sign. 6)A firm's stock has 50% chance of a 8% rate of return and a  50% chance of a 27% rate of return. What is the standard deviation of return for this stock? Answer as a percent...
Q8 3. Calculate the NPV for the following project. Use straight line depreciation over four-year period....
Q8 3. Calculate the NPV for the following project. Use straight line depreciation over four-year period. Assume zero salvage at the end of the four years, with no required additional working capital.   Calculate the NPV to the nearest cent xx.xx and enter without the dollar sign. WACC                                                                           5.7% Additional investment in fixed assets (depreciable basis) $100,000 Straight-line depreciation rate                                                   25% Annual sales revenues (constant for three years) $75,000 Operating costs (excl. depreciation) (also constant) $25,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT