Homework Answers
| Tax rate | 22% |
| Sales | 713500 |
| Variable Costs | 49730 |
| Depreciation | 87400 |
| EBT | 57400 |
| Taxes(0.22*57400) | 12628 |
| Net Income | 44772 |
| OCF (Tax shield approach)= (Sales-costs)(1-T)+Deprcn*T (713500-49730)(0.78)+(87400*0.22) | 536,968.6 |
| Depreciation Tax Shield (0.22*87400) | 19228 |
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All answers must be entererd as formulas CHAPTER 8 0 Saved Help Save & Exit Subm Consider the following income s...
All answers must be entererd as formulas CHAPTER 8 0 Saved Help Save & Exit Sub...
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answers must be entererd as formulas
CHAPTER 8 0 Saved Help Save & Exit Sub - - - Formatting Pom Styles Table Styles Clipboard Font A E F G H I A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? Projected sales Variable cost (%...
All answers must be entererd as formulas CHAPTER 8 6 Saved Help Save & Exit Sub...
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answers must be entererd as formulas
CHAPTER 8 6 Saved Help Save & Exit Sub Consider an asset that costs $730,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $192,000. If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? Costs Pretax salvage value...
All answers must be entererd as formulas CHAPTER 8 Saved Help Save & Exit Submit A1...
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CHAPTER 8 Saved Help Save & Exit Submit A1 В A С D G H I J Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The tax...
All answers must be entererd as formulas two different questions CHAPTER 3 Saved Help Save &...
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answers must be entererd as formulas
two different questions
CHAPTER 3 Saved Help Save & Exit Submit E F G If Roten Rooters, Inc., has an equity multiplier of 1.15, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE? 1.15 Equity multiplier Total asset turnover Profit margin 2.10 6.10% Complete the following analysis. Do not hard code values in your calculations. Return on equity CHAPTER 3 Saved Help Save & Exit Submit...
All answers must be entererd as formulas CHAPTER 3 Saved Help Save & Exit Submit Font Styles Levine, Inc., has a...
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CHAPTER 3 Saved Help Save & Exit Submit Font Styles Levine, Inc., has a total debt ratio of.53. What is its debt-equity ratio? What is its equity multiplier? Total debt ratio 0.53 Complete the following analysis. Do not hard code values in your calculations Debt-equity ratio Equity multiplier
All answers must be entererd as formulas CHAPTER 8 0 Seved Help Save & Exit Submit...
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answers must be entererd as formulas
CHAPTER 8 0 Seved Help Save & Exit Submit Consider the following two mutually exclusive projects. What is the IRR for each project? What is the crossover rate between the two projects? What is the NPV for each project at the various interest rates in cells C27 to C32? Annual cash flows: Year 0 Year 1 Year 2 Year 3 $ (24,000) 10,620 10,900 10,500 (24,000) 12,100 9,360 10,400 Complete the following analysis....
All answers must be entererd as formulas Saved Help Save & Exit Submit CHAPTER 3 Styles...
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Saved Help Save & Exit Submit CHAPTER 3 Styles Hont Clipboard fr X A1 K G н I E C AB 2 Makers Corp. had additions to retained earnings for the year just ended of $395,000. The firm paid out $195,000 in cash dividends, and it has ending total equity of $5.3 million. If the company currently has 170,000 shares of common stock outstanding, what are earnings per share? Dividends per share? Book...
All answers must be entererd as formulas CHAPTER 5 Saved Help Save & Exit Submit Paste B I U. . Font Editing ....
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CHAPTER 5 Saved Help Save & Exit Submit Paste B I U. . Font Editing . A . Alignment Number Conditional Format as Cell - Formatting Table Styles Styles Cells . Clipboard 5 Prepare an amortization schedule for a five-year loan of $67,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Loan amount...
All answers must be entererd as formulas two different questions CHAPTER 7 6 Saved Help Save...
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answers must be entererd as formulas
two different questions
CHAPTER 7 6 Saved Help Save & Exit Submit E F G H Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50 dividend every year in perpetuity. If this issue currently sells for $85 per share, what is the required return? Annual dividend Current price 3.50 85.00 Complete the following analysis. Do not hard code values in your calculations. Required return CHAPTER 7 0 Saved Help...
All answers must be entererd as formulas two different questions CHAPTER 5 Saved Help Save & Exit Submit Clipbo...
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answers must be entererd as formulas
two different questions
CHAPTER 5 Saved Help Save & Exit Submit Clipboard Styles A1 E F G What is the future value of $2,400 in 17 years assuming an interest rate of 7.9 percent compounded semiannually? 2,400 = Bauw 17 Deposit Number of years Interest rate Times compounded per year 7.9% Complete the following analysis. Do not hard code values in your calculations. Your answer should be positive. Future value 3 CHAPTER 5...
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answers must be entererd as formulas
CHAPTER 8 0 Saved Help Save & Exit Sub - - - Formatting Pom Styles Table Styles Clipboard Font A E F G H I A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? Projected sales Variable cost (%...
All
answers must be entererd as formulas
CHAPTER 8 6 Saved Help Save & Exit Sub Consider an asset that costs $730,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $192,000. If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? Costs Pretax salvage value...
All
answers must be entererd as formulas
CHAPTER 8 Saved Help Save & Exit Submit A1 В A С D G H I J Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The tax...
All
answers must be entererd as formulas
two different questions
CHAPTER 3 Saved Help Save & Exit Submit E F G If Roten Rooters, Inc., has an equity multiplier of 1.15, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE? 1.15 Equity multiplier Total asset turnover Profit margin 2.10 6.10% Complete the following analysis. Do not hard code values in your calculations. Return on equity CHAPTER 3 Saved Help Save & Exit Submit...
All
answers must be entererd as formulas
CHAPTER 3 Saved Help Save & Exit Submit Font Styles Levine, Inc., has a total debt ratio of.53. What is its debt-equity ratio? What is its equity multiplier? Total debt ratio 0.53 Complete the following analysis. Do not hard code values in your calculations Debt-equity ratio Equity multiplier
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answers must be entererd as formulas
CHAPTER 8 0 Seved Help Save & Exit Submit Consider the following two mutually exclusive projects. What is the IRR for each project? What is the crossover rate between the two projects? What is the NPV for each project at the various interest rates in cells C27 to C32? Annual cash flows: Year 0 Year 1 Year 2 Year 3 $ (24,000) 10,620 10,900 10,500 (24,000) 12,100 9,360 10,400 Complete the following analysis....
All
answers must be entererd as formulas
Saved Help Save & Exit Submit CHAPTER 3 Styles Hont Clipboard fr X A1 K G н I E C AB 2 Makers Corp. had additions to retained earnings for the year just ended of $395,000. The firm paid out $195,000 in cash dividends, and it has ending total equity of $5.3 million. If the company currently has 170,000 shares of common stock outstanding, what are earnings per share? Dividends per share? Book...
All
answers must be entererd as formulas
CHAPTER 5 Saved Help Save & Exit Submit Paste B I U. . Font Editing . A . Alignment Number Conditional Format as Cell - Formatting Table Styles Styles Cells . Clipboard 5 Prepare an amortization schedule for a five-year loan of $67,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Loan amount...
All
answers must be entererd as formulas
two different questions
CHAPTER 7 6 Saved Help Save & Exit Submit E F G H Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50 dividend every year in perpetuity. If this issue currently sells for $85 per share, what is the required return? Annual dividend Current price 3.50 85.00 Complete the following analysis. Do not hard code values in your calculations. Required return CHAPTER 7 0 Saved Help...
All
answers must be entererd as formulas
two different questions
CHAPTER 5 Saved Help Save & Exit Submit Clipboard Styles A1 E F G What is the future value of $2,400 in 17 years assuming an interest rate of 7.9 percent compounded semiannually? 2,400 = Bauw 17 Deposit Number of years Interest rate Times compounded per year 7.9% Complete the following analysis. Do not hard code values in your calculations. Your answer should be positive. Future value 3 CHAPTER 5...
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