Homework Answers
Add Answer to:
5. If recession causes a firm with profits of $ 600000 this year to project decreases...
A firm's cash flows one year from now will be either $2 million if there is...
A firm's cash flows one year from now will be either $2 million if there is a boom or $.96 million if there is a recession. A boom and a recession are equally likely. A new project is available to the firm: It requires an investment today of $.4 million and will generate a cash flow one year from now of $.68 million for sure. The interest rate is 10% Suppose the firm has no debt. Will the project be...
5. A firm begins the year with a Book Value of $10 million. During the year...
5. A firm begins the year with a Book Value of $10 million. During the year it generates $5 million in net profits. It paid $1 million in interest on its bank loan. It decides to pay $3 million in dividends. What is its new Book Value at the start of next year? a) $11 million b) $12 million c) $15 million d) $16 million
A&D Inc. is projecting the following increases and decreases over the next year: Inventory - increase...
A&D Inc. is projecting the following increases and decreases over the next year: Inventory - increase by $3 million Accounts receivable - decrease by $2 million Accrued payroll taxes - increase by $1 million Fixed assets - increase by $5 million Long term debt - increase by $4 million Revenues - increase by $6 million As a result of its projections, A&D Inc. can expect it's net working capital to: a. increase by $7 million b. Increase by $1 million....
28. The Rotograf has approved a project 5 years ago and the project still has 10...
28. The Rotograf has approved a project 5 years ago and the project still has 10 years of remaining life today. If the old equipment is replaced with the new equipment, the Operating Expenses will decrease by $9 million, since the new equipment is energy-efficient. The old equipment was purchased 5 years ago at a cost of $37 million and was assumed to have no value at the end of its 15-year life. The old equipment can be sold for...
QUESTION 14: If a firm turns over its average inventory of $59,389,000 five times (IT=5), and...
QUESTION 14: If a firm turns over its average inventory of $59,389,000 five times (IT=5), and the gross profit margin is 58%, what is the total revenue (sales)? $707 million $645 million $693 million $775 million none of these QUESTION 15: Trico Corporation’s DSO is 28.6 days. If the accounts receivable total $3,840,000, What would the firm’s annual sales be? $19.893 million $49.007 million $59.390million $38.908 million none of these QUESTION 16: The target capital structure is the projects that...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is mature, it only expects growth of 2% per year. The firm's copy of capital is estimated at 10%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding. QUESTION 2 An asset was originally bought for $70, The IRS stated that the asset was...
of per year How much could Ahmad's Construction Company afford to spend on new weet each...
of per year How much could Ahmad's Construction Company afford to spend on new weet each year for the next 3 years if it expects a profit of $50 million 3 years from now? Assume the company's MARR is 20% per year ras Construction wants to have enough money available 5 years from now to purchase a ne ctor-trailer. If the estimated cost is $250,000, how much should the company set aside cac ar if the funds eam 10% per...
Managers, Profits, and Markets 1. For each one of the costs below, explain whether the...
Managers, Profits, and Markets 1. For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 4.5 percent annually. a. The company’s delivery truck, which cost $150,000 four years ago, is now worth $120,000. The company has paid off its bank loan used to purchase the truck and now owns the delivery truck. b....
of the payment, and (b) the amount of interest? what was the amount of the original...
of the payment, and (b) the amount of interest? what was the amount of the original loan? 1.19 A medium-size consulting engineering firm is try-1.28 A start-up company with multiple nanotechnology ing to decide whether it should remodel its office now or wait and do it one year from now. If the firm does it now, the cost will be $38,000. The interest rate is 10% per year. a. What would the cost have to be one year from products...
(Calculating inflation and project cash flows) Carlyle Chemicals is evaluating a new chemical compound used in...
(Calculating inflation and project cash flows) Carlyle Chemicals is evaluating a new chemical compound used in the manufacture of a wide range of consumer products. The firm is concerned that inflation in the cost of raw materials will have an adverse effect on the project's cash flows. Specifically, the firm expects that the cost per unit (which is currently $ 0.87 will rise at a rate of 13 percent annually over the next three years. The per-unit selling price is...
A firm's cash flows one year from now will be either $2 million if there is a boom or $.96 million if there is a recession. A boom and a recession are equally likely. A new project is available to the firm: It requires an investment today of $.4 million and will generate a cash flow one year from now of $.68 million for sure. The interest rate is 10% Suppose the firm has no debt. Will the project be...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is mature, it only expects growth of 2% per year. The firm's copy of capital is estimated at 10%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding. QUESTION 2 An asset was originally bought for $70, The IRS stated that the asset was...
of per year How much could Ahmad's Construction Company afford to spend on new weet each year for the next 3 years if it expects a profit of $50 million 3 years from now? Assume the company's MARR is 20% per year ras Construction wants to have enough money available 5 years from now to purchase a ne ctor-trailer. If the estimated cost is $250,000, how much should the company set aside cac ar if the funds eam 10% per...
of the payment, and (b) the amount of interest? what was the amount of the original loan? 1.19 A medium-size consulting engineering firm is try-1.28 A start-up company with multiple nanotechnology ing to decide whether it should remodel its office now or wait and do it one year from now. If the firm does it now, the cost will be $38,000. The interest rate is 10% per year. a. What would the cost have to be one year from products...
Most questions answered within 3 hours.
-
Find the complete optimal solution to this linear programming
problem. Max 5x + 3y s.t. 2x...
asked 23 minutes ago -
The pH of an acetate buffer was determined to be 4.76. Then, a
few drops of...
asked 26 minutes ago -
a sample of size 1500 is used to find a confidence
interval for the percentage of...
asked 35 minutes ago -
Explain in detail the differences between qualitative and
quantitative forecasts. Include at least two examples of...
asked 40 minutes ago -
Differentiate between response time and throughput.
Explain how the physical design of a database influences
performance...
asked 42 minutes ago -
Write MATLAB code to plot the following
waveforms.
Rectangular pulses:
????(?)
????(? − ?)
????(?/?) ...
asked 41 minutes ago -
4. Adam’s Inc.’s outstanding common stock is currently selling
in the market for $28. Dividends of...
asked 53 minutes ago -
question
you were
asked to create a regression that will predict the amount of saving
for...
asked 1 hour ago -
If tcalc = -2.78, tcrit = 1.96, H0: Mu > Mu0, and Xbar <
Mu0, what...
asked 1 hour ago -
Circular distribution
•Suppose two birds are flying, one is flying from the north and
the other...
asked 1 hour ago -
please answer all... it all counts as a discussion problem
1a qualitative data and proportions: Suppose...
asked 1 hour ago -
Typing The Answer Is Mandatory
Temperature is a measure of heat. More heat means that more...
asked 1 hour ago