Microsoft invests in google by buying shares worth $50 million, this is an example of O Capital budgeting O Capital structure D O Working capital O Project appraisal
Q: 4. Your firm is evaluating a project that should generate revenue of P4,600 in year 1, P5,200 in…
A: In this question, we need to calculate the future value of each year's revenue at the required…
Q: Post an interest rate calculation question for your peers that incorporates any of the following…
A: As asked in the question to post a question considering any of the interest rates, so we will take…
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A: The income statement is used to find out the company's income and expenditures and ascertain whether…
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A: NPV takes into account the time value of money and can be used to evaluate similar investment…
Q: One of the best known examples of how an organization can use its supply chain to achieve a…
A:
Q: 28. What is scarcity? O Balancing unlimited wants with lim OBalancing trade between different:…
A: Scarcity is the gap between scarce resources and unlimited wants that are never-ending but to…
Q: Figure 2 shows the payments and revenues of a small project. If M.R.R.R= % 12, Evaluate the project…
A: Given cashflows of a project. We have to calculate the annual worth of the project. Annual worth is…
Q: You have an opportunity to invest $106,000 now in return for $79,300 in one year and $29,100 in…
A: Data given: Initial Investment ($) = 106,000 Cash flow(Year 1) = $ 79300 Cash flow (Year 2) = $…
Q: Name Spot The Difference There are 10 differences in the pictures below. Can you find them all?
A: Difference are marked in the below image with black color line. Please find black line to identify…
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A: We will use a 12% rate and will calculate the present worth by applying the formula for both…
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A: Present value of an annuity is the cash value of future annuity payments of all the persons, It is…
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A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
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A: Bond price refers to the present discounted value of the future cash flows that a bond generates.In…
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A: The payback period is a measure of how long it for the cash flows to cover the initial investment.…
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Q: What APR, compounded monthly, is needed to grow a present value of $250 to $500 over 6 years?
A: As per the information provided: Present value (PV) - $250 Future value (FV) - $500 Period - 6 years…
Q: Monthly payments for 10 years with an annual interest rate of 4% compounded monthly. Monthly…
A: Solution:- When an equal payment is made each period, it is called annuity. We know, Present value…
Q: ompare three alternatives on the basis of their capitalized costs at i = 13% per year and select the…
A: Capitalized cost is the present value of all cost that may occur during the economic life of the…
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A: A dividend is a return received by an investor from an investment made in the company. In the case…
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A: ERi=Rf+βi(ERm−Rf) where:ERi=expected return of investment Rf=risk-free rate βi=beta of the…
Q: what is the par value of the bond?
A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…
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A: Renounceable Right Issue of Ordinary Shares Under this approach a company gives an offer to its…
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A: Here, Year 1-year Forward Rate 1 4.6% 2 4.9% 3 5.2% 4 5.5% 5…
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A: The proce of share will be calculated with the help of following formula (Gorden's Model) P0 = D1 ÷…
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A: Bond: It represents debt security issued by the company for raising capital from debt investors.…
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A: Given, The price of the stock is $985
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: The weighted average cost of capital (WACC) measures a company's average cost of capital from all…
Q: 5. A firm must decide between two designs A and B. Their effective income rate is 50%. If the…
A: Explanation : Under Capital Budgeting technique we can take the decision whether the project should…
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A: Weak form of capital market efficiency- In this form of market only the past information about the…
Q: Your company is considering a project which will require the purchase of $635,000 in new equipment.…
A: Given: Particulars Amount Cost of asset $635,000 End value 25% Sales $224,000 Working…
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A: Weighted average cost of capital (WACC) It is an enterprises average cost of capital from the…
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A: Given: Investment = $2,000,000 Revenue = $230,000
Q: The CC value is determined to be $
A: CC Value: It represents the current value of the account at a future date.
Q: Assume the $11,700 Treasury bill, 6% for 10 weeks. Calculate the effective rate of interest.…
A: Answer: Interest applicable = 11700 * 0.06 * 10/52 = 135 Proceeds =…
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A: Note: The risk of stock D is not provided in the question. Hence parts b and c have not been…
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A: On the basis of the information provided: Cost of an elevator system - P 18M Useful life (years) -…
Q: The basic principle of valuation states that the value of any asset is: O The sum of the present…
A: The present value of an asset is the sum of all future cash flows discounted at the discount rate.
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A: Data given: Cost of new casino (at t=0) = $10 million WACC = 11% Cash flow with tax=$1.875 million…
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A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount deposited is…
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A: As you have posted multiple questions, we will answer the first question for you. To get answers for…
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A: The net present value is a method of finding the profitability of a projected by adding up…
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A: A mutual fund is a form of financial vehicle that invests in securities such as stocks, bonds, money…
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A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
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Q: Compute the mean return, variance, and standard deviation of returns, and the coefficient variation…
A: Formula to be used: Mean(X̄)=∑X/n Variance=∑ (X-X̄)^2)/n Standard deviation (SD)=√(∑(X-X̄)^2)/n…
Q: Financial markets that facilitate the flow of short-term funds are known as: O Primary markets O…
A: The answer is capital markets.
Q: Consider the following investment project. Calculate the net future worth of this investment at 11%…
A: Solution:- Net future worth means the net future value of a project after adjusting initial…
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- You were recently hired by MSS company to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $95.00; g = 6.00% (constant); and F = 7.00%. What is the cost of equity raised by selling new common stock? 7.08% 7.98% 8.18% 8.29% 7.57%You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $115.00; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?wagner lumber hired you to help them estimate their cost of capital. You were provided with the following data: D1=$2.5; P0=$50; g=5%(constant); and F=5%. The firm must issue new stock; what is the cost of equity raised by selling new common stock?
- suppose you manage a $200,000 company that consist of the following invest: A $50,000 beta .095 B $50,000 beta 0.80 C $50,000 beta 1.00 D $50,000 beta 1.20 what is holding of company beta?Maxwell Private equity investor is considering making an investment capital firm. The investor values the firm at $1.5 mn (present value of exit value) following $300,000 capital investment by the investor. Calculate the venture capital firm's pre- money valuation and investor's proportional ownership.You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D 1 = $2.65; P 0 = $50.00; g = 6.00% (constant); and F = 4.00%. What is the cost of equity raised by selling new common stock?
- You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You obtained the following data: D1 = $2.00; P0 = $27.00; g = 4.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock? Group of answer choices 11.33% 10.97% 12.03% 11.80% 12.51%Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following:a. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.4. You are a member of the finance staff of Orange Ltd, whose share are listed on London Stock Exchange. You have been asked to derive a weighted average cost of capital (WACC) for use in assessing a major investment in a training facility. The business’s financial statement as at 31 December 2021 shows that it has the following long-term financial capital structure: Redeemable Debt: 5,000 redeemable debts of £100 each with 12% coupon rate Preference Shares: 46,000 shares with 9% dividend rate and a par value of £10 Ordinary shares: 0.5 million shares of £1 each On 31 December 2021, the 12% redeemable debt is traded at £114 (ex-interest). It will be redeemable at par on 31 December 2022. Interest on the debt is payable annually on 31 December. On 31 December 2021, the market price of the company’s 9% preference shares is £13.5 (cum-dividend). On 31 December 2021, the ordinary shares are quoted at £1.21 each. The ordinary shareholders will receive a 7p annual dividend per share very…
- You are given the following information about Aisha Enterprises. The company would like to raise capital through shares only. It has five alternative operational periods in which to raise funds. The company has 25,000 ordinary shares at $10 per share. It has 2500 preference shares of $ 100 each. The dividend on preference shares is 8%. The tax rate is 25 % and the interest rate is 15%. The company would like to raise $2 million. You are required to complete an EBIT/EPS Analysis for the company. A B C D E EBIT 400,000 600,000 700,000 800,000 900,000The startup management is looking to raise venture capital. The pre-money valuation is $10,000,000 with two co-founders holding 40% of the shares each and two investors holding 10% respectively. Now, the platform receives a venture capital injection of $10,000,000. Answer the following questions: i. What is the post-money valuation in $? ii. How much equity does each founder hold in % and $ after the capital injection? iii. How much equity does the venture capital firm hold in % and $ after the capital injection?Explain this answer based on this question: Using the following information for Handy Hardware, determine the capital structure that results in the lowest weighted average cost of capital (WACC) for the firm. Explain your answer. (LO 12-2) Proportion of Debt Proportion of Debt 10% 30 50 Earnings per Share (EPS) Earnings per Share (EPS) $3.85 3.98 4.10 Stock Price, Po Stock Price, Po $95.40 97.25 96.80