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A: Annual benefit is the total gain within an accounting year.
Q: Gypco expects an EBIT of $10,000 every year forever. Gypco can borrow at 7 percent. Suppose Gypco…
A: Gyco's EBIT = $10000 Tax rate =35% Debt =15000 Cost of Equity =17%
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A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…
Q: Annual revenues in our company are $1.5 million this year. If they are expected to grow at a…
A: Future Value = Present Value * (1+rate)^years
Q: A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: hat capital must be invested to have $
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Q: 1. How much interest will be earned on $10,000 in 5 months if the annual simple interest rate is…
A: Answer 1: Information Provided: Present value = $10,000 Time = 5 months Interest rate = 2%
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A: 3 year future value = $10,000 4 year future value = $20,000 5 year future value = $30,000 Interest…
Q: KN&J expects its EBIT to be $147,000 every year forever. The company currently has no debt but can…
A: Given data; EBIT = $147,000 cost of equity = 14.6% tax rate = 21% debt value = $40,000
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Q: quarterly
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Q: Last year Mike Corporation's sales were $134 million. If sales grow at 8% per year, how large (in…
A: Last year sales = $134 Million Growth Rate = 8% Time period = 4 years Here, future sales of M…
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A: The cash generated over and above required by business operations and capital expenditure is called…
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Q: A company plans to purchase an asset in four years at a price of $180,000. How much has to be…
A: The formula for compound interest: Final Amount=Principal×1+ratetime
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A: present value is the value of future cashflow discounted to present day. present value=future…
Q: A firm’s current profits are P550,000. These profits are expected to grow indefinitely at a constant…
A: Firm Value: The value of a company, sometimes referred to as Firm Value (FV) or Enterprise Value…
Q: A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…
A: Solution: The times interest earned ration is a measure to determine company's ability to meet its…
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A: given, pv = $48.25 million r=8.6% n=3 years continous compounding
Q: What is the accumulated amount after 5 years of P7,500.00 invested at a rate of 10% per year…
A: As per the guidelines we are required to solve first question only when multiple questions are…
Q: Meyer & Co. expects its EBIT to be $97,000 every year forever. The firm can borrow at 8 percent. The…
A: WACC is an abbreviation used for weighted average cost of capital which refers to the average cost…
Q: What interest rate would be necessary for $7,950 investment to grow to $10,400 in an account…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year…
A: The rate of return on an investment is the ratio of profits earned on an investment made by the…
Q: Company A showed a profit of $1.9 million last year. The CEO of the company expects the profit to…
A: R(t) = 1.9 (1.08)t Future Value = Cash flow ( 1 + r )t Present Value = Cash flow ( 1 + r )-t…
Q: If a company invests $10,000 at 7% simple interest for 20 years, how much will it have at the end of…
A: Formula: Future value = Amount + Interest Future value = $10,000 + ($10,000*7%*20) Future value…
Q: How long will it take the money to double itself if invested at 16% compounded quarterly? In how…
A: Convert 16% compounded quarterly to its equivalent interest rate for annual interval. Here, 'r'…
Q: Meyer & Co. expects its EBIT to be $114,000 every year forever. The firm can borrow at 6 percent.…
A: EBIT = $114000 Cost of equity (Re) = 12% Tax rate (T) = 23%
Q: This morning, Mariam Inc invested $800,000 to help fund a company expansion project planned for 4…
A: given, pv = $800,000 n=4 r1= 4.59% r2= 5.59%
Q: How much would a company have to invest now in order to sufficiently provide for annual payments of…
A: Solution:- Calculation of the How much would a company have to invest as follows under:-
Q: New Schools is an all-equity company with an expected EBIT of $94,000 every year forever. The…
A: Value of Unlevered firm = EBIT(1 – tax rate)/cost of equity Value of Unlevered firm = $94,000(1 –…
Q: Last year, the company's sales were $2,250,000. If sales grow at 6% per year, how large will it be 5…
A: Formula: Sales value after 5 years = Current Year sales x ( 1 + Growth rate )Number of years
Q: Last year Mike Corporation's sales were $134 million. If sales grow at 8% per year, how large (in…
A: Sales = $134 Million Growth rate = 8% Time period = 4 years
Q: A business is increasing by 10% for 8 years. If the sales in year 1 is $ 22,000, what is the present…
A: Present value = sum of present value of all sales figures for years 1 to 8. This can be treated as a…
Q: How much would a business have to invest in a high-growth fund to receive $13,000 every month for 7…
A: An annuity is the total of regular payments made over a period of time at a specific date, at a…
Q: a firm has constant profits of $100,000 per year for the next four years and the interest rate is 6…
A: Present Value :- Present value means the value of future cash flow as of today. It is calculated as…
Q: year Dania Corporation's sales were $525 million. If sales grow at 10.5% per year, how large (in…
A: The ability of your sales staff to increase revenue over a set period is measured by sales growth,…
Q: Net revenues at an older manufacturing plant will be $2 million for this year. The net revenue will…
A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…
If a company is investing money at 6% interest compounded monthly and wants to have $40,000 in 4 years, how much does it need to invest?
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- Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded annually, how much interest is earned over the first 6 years? If the interest is compounded monthly, how much interest is earned over the first 6 years?What is the rate of return on an investment that costs $5,000, earned a $600 dividend during the year, and is sold after 1 year for $4,400?A business is increasing by 10% for 8 years. If the sales in year 1 is $ 22,000, what is the present value if the interest rate is 10% per year?
- If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? A. $1,068 B. $890 C. $445 D. $1424What capital must be invested to have $ 1,200.00 for one year, which produces 14.8% annual compounding interest for one month?A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate of interest is 11% and number of years are 6 then what will be the EUAB?
- How much would a company have to invest now in order to sufficiently provide for annual payments of $313,000 over a 8-year period? Assume the interest rate is 12% per year.How much money should a company deposit into an account now so that they will have $50,000 in 6 years, if the account earns 4% interest, compounded quarterly?If a company invests $10,000 at 7% simple interest for 20 years, how much will it have at the end of that time?
- An executive invests $22,000, some at 7% and some at 6% annual interest. If he receives an annual return of $1,420, how much is invested at each rate? Pls thanksSuppose you have an account that will grow to $381,000.00 in 15 years. It grows at 3% annual interest, compounded monthly, under the current investment strategy. The owner of the account, however, wants it to have $505,000.00 after 15 years. How much additional monthly contribution should they make to meet their goal?This morning, Mariam Inc invested $800,000 to help fund a company expansion project planned for 4 years from now. How much additional money will the firm have 4 years from now if it can earn 5.59 percent rather than 4.59 percent on its savings?
