Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)
Q: how was capital asset pricing model (CAPM) created? GIVE reference
A: Meaning CAPM Capital asset pricing model, It is created to explain the investor that he/she will get…
Q: Using the formula for YTM (yield to maturity) in the lecture, what is the rate return for a bond…
A: YTM that means yield to maturity is rate of realized when bond is held till the maturity of the bond…
Q: Chia Chia, Inc. stock is currently trading at $90 a share. The firm feels that the desirable price…
A: The main goal of Chia Chia here is to ensure that its stock starts trading within the desirable…
Q: TI Company offers to sell you a bond for $651.60. No payments will be made until the bond matures…
A: Price (P) = $651.60 Maturity value (MV) = $1000 Period (n) = 8 Years
Q: refers to the stockpiles of forex, gold, and bonds in the US Treasury.
A: A backed currency is one that is backed or supported by a commodity, such as silver or gold. The…
Q: What is the best method of financial planning? How do you save money and spend money wisely? Explain…
A: Financial planning is all about channelizing the inflow of cash or resources in such a manner that…
Q: As a trader in New York's financial district, you are interested in three currencies: US Dollars…
A: Arbitrage means the simultaneous buying and selling of assets in different markets to gain from the…
Q: Analyze the following statement: When purchasing power parity really holds, comparative advantage…
A: An exchange rate is the price of one currency against another. Exchange rates are either fixed or…
Q: In February 2022 the €/$ (euro/dollar) exchange rate was 0 88€/$ In France, a country that uses…
A: The exchange rate is too low. The dollar should appreciate to ensure that the purchasing power…
Q: Pfizer Manufacturing just issued a bond with a $1,000 face value and a coupon rat of 8%. If the bond…
A: Face value = $1000 Coupon rate = 8% Annual coupon amount (C) = 1000*0.08 = $80 Years to maturity (n)…
Q: se your own word to explain the spot versus Futures prices. a. what is Backwardation b. What is…
A: The spot prices and future prices may be in upward trend or may be in downward trend and depending…
Q: A company estimates that it can sell 4,000 units each month of its product if it prices each unit at…
A: When 4000 units are sold: Sale Value = 4000*80 = $3,20,000 Total Cost = Fixed Cost + Unit Production…
Q: At one time, it was felt that liability insurance would undermine the tort system, which has as its…
A: Liability insurance is essential for individuals who are accountable and at fault for the injuries…
Q: Which of the following will decrease the length of the operating cycle? 1 Reducing the…
A: The answer is option D. All of the above.
Q: What kinds of expenses do mutual funds incur? How are expense ratios calculated?
A: Mutual funds are referred to as the investment vehicle which provides access to investors to…
Q: 3. Calculate the NPV at a cost of capital of 9% and the IRR for a project with an initial outlay of…
A: Net Present Value is the difference between present value of cash inflows and cash outflows.…
Q: 1. When you find a stock with positive alpha, you should (chapter-9 capm) • Sell the stock because…
A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve…
Q: QUESTION 2 The savings plan that is likely to have a set rate of return is a O Money market account…
A: Money market instruments are held for a short time period while capital market instruments are held…
Q: ne financial manager of Apple Co. is evaluating Banana quisition. Banana Co. is expected to produce…
A: When two different entities join forces to form a new, combined entity, it is called a merger.An…
Q: Service Income, Customer 1-P50,000.00 Salaries Paid to Clerk – P5,000.00 Rent Expense - P3,000.00…
A: Total Expenses = Salaries paid to clerk + Utilities Expense + Rent Expense + Salaries paid to…
Q: A firm wants to raise $40 million through a rights offering. The subscription price is set at $40.…
A: Amount need to raise = $40,000,000 Subscription price = $40 Current outstanding shares = 3,000,000
Q: how to implement penny stock Strategy for stock market portfilo when you invest 25,000$
A: Penny stocks are those stocks that trade under $5 per share. This is as per the SEC (Securities…
Q: The United States has a comparative advantage in -skilled lator. This explains why the U.S. is a net…
A: Skilled labor refers to workers who are highly trained, educated, or experienced and can do more…
Q: You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return…
A: A portfolio is made up of more than one stock. The weight of stocks that make the portfolio adds up…
Q: ars, what will their payment and the total cost of their loan be?
A: Loan Amount: It refers to the amount borrowed by the borrower from the bank. The borrower pays the…
Q: PROBLEM: 1. What is the current value of the Php 200 payment to be made at the end of each of the…
A:
Q: A 'neighbourhood lender' lends money to three people Tony, Janice and Silvio as follows. Туре of…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: Using the formula for YTM (yield to maturity) in the lecture, what is the rate of return for a bond…
A: The formula for calculating YTM = Coupon + ((Face value+price)/no. of years to maturity)/((Face…
Q: Happy Printers Ltd is evaluating four mutually exclusive projects which are competing for the same…
A: Here,
Q: You are an investment adviser. One of your clients approaches you for your advice on investing in…
A: An equity share, also known as an ordinary share, is a fractional ownership that commences the…
Q: At the age of 25 Riley starts saving for retirement. If his investment plans pay an APR of 6%…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: interest, compounded monthly, how much do they need to deposit each month in order to make the…
A: Future Value: It refers to the future value of a present amount and is estimated by compounding the…
Q: If $300,000 is deposited at a rate of 12% compounded bimonthly, determine the compounded interest…
A: Note: It has been assumed that bi-monthly means something which has occurred once in two months.…
Q: Two mutually exclusive investment altematives for implementing an office automation plan in an…
A: Incremental IRR analysis It is an analysis of the return over venture finished with an intend to…
Q: At the end of March 2019, a Zambian corporate bond had a coupon rate of 6%, a par (face) value of…
A: Given, The face value of the bond is K1,000 Yield is 4.5% Coupon rate is 6%
Q: ation hits a company share such that the share price rises from P100 to P120, and then there is…
A: The notion that asset prices represent all existing knowledge by all market players is known as…
Q: 6. A company is considering two proposals. The company must implement one of them to resolve an…
A: Solution:- We know, Internal Rate of Return (IRR) is the rate of return the project (or proposal) is…
Q: 7. What is the cost in real dollars today of spending $25,000 four years from now if your effective…
A:
Q: 4) Jones purchased a perpetuity today for 7000. He will receive the first annual payment of 200 five…
A: Price of perpetuity = Present value of perpetuity = 7000 First payment after 5 years = 200 Every…
Q: Dr. Barrett wants to purchase a new piece of equipment for his practice. The equipment can be…
A: Payback period = Initial investment/annual cash inflows Since depreciation is a non cash expenditure…
Q: A friend, explaining his position with respect to liability insurance, states, “I don’t feel I need…
A: The concept of liability insurance refers to an insurance plan that protects an insured party from…
Q: What are municipal bonds? What characteristics makes them especially attractive to high-income…
A: The state government issues municipal bonds. They can be thought of as a risk-free investment…
Q: 1. For each of the following Treasury Bills, calculate the discount basis yield and the investment…
A: To Find: Discount yield Investment Yield
Q: our business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…
A: LIBOR stands for London Interbank Offered Rate. It is the benchmark rate at which all major global…
Q: Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of jz = 4.77%…
A: The present value of a bond is the price which the bondholder may receive in exchange of the bond…
Q: A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond…
A: Macaulay duration = Sum of weighted present values of cash flows from the bond/Price of bond…
Q: tax rate is 40%.How much would BG Company's earnings after taxes be under this financing plan? O…
A: Net income (earnings after tax) refers to the amount of profit earned by the company from selling…
Q: Using this table as needed, calculate the required information for the mortgage. Amount Financed…
A: Data given: Amount financed = $ 89,500 Interest rate = 8% n= 30 years
Q: what is Backwardation b. What is Contango c. What is Basi
A: Backwardation and Contango are two types of trends in the future and spot prices and can be defined…
Q: Automatic dividend reinvestment O is a requirement of all mutual fund companies. compounds share…
A: Dividend is a return which is earned from investment made in shares. Generally dividend is provided…
9. Use the information below provided by Angel Baby Angel Company:
Sales |
8,250,000.00 |
Operating costs |
4,725,000.00 |
Operating income |
3,525,000.00 |
Interest expense |
1,750,000.00 |
Earnings before taxes |
1,775,000.00 |
Taxes (40%) |
621,250.00 |
Net income |
1,153,750.00 |
WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)
Step by step
Solved in 2 steps
- Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)11. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) Refer to Angel Baby Angel Company, what is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage10. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer.
- Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Question 1.) What is its TIE ratio? Use 4 decimal places in your final answer. 2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage 3.) Calculate the EVA. (2 decimal places)18. The following financial information was provided by Anya Company: Net Income 8,255,000.00 NOPAT 75,785,000.00 EBITDA 143,000,000.00 Net Profit Margin 6.00% Operating capital 425,070,000.00 After tax cost of capital 12.00% Tax rate 35.00% Refer to Anya Company, calculate its sales. Use 2 decimal places in your final answer15. Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% Refer to Scholz Company, calculate its EVA. Use 2 decimal places for your final answer.
- Assume that a company has the following data: EBIT=1,200 EBITDA Margin=9.4% Tax rate 39% Net PP&E=2680 Net Working Capital=812 Sales = 14351 Depreciation and Amortization=376 Stores=400 Calculate Return on Capital (or ROIC) Please show your work.1. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) 2. Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer. 3. Refer to Angel Baby Angel Company, what is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentageuality Service’s revenue on account is P60,000 and the cash basis is P90,000. The cost of services is P80,000. The capital of Quality will increase by: a. P 10,000 b. P 70,000 c. P 90,000 d. P150,000
- Best Feeds, Inc. has the following information on their income statement: Sales $2,000,000 Cash Costs 1,200,000 Depreciation 100,000 EBIT 700,000 Interest Expense 200,000 EBT 500,000 Taxes (25%) 125,000 Net Income $ 375,000 What is their NOPAT? Group of answer choices $427,620 $450,120 $375,000 $498,750 $525,000Spartans Inc. has the following information for its two divisions: North and South North South Sales $6,000,000 $6,000,000 Expenses $3,800,000 $3,800,000 Oper. Income $2,200,000 $2,200,000 Taxes $660,000 $770,000 Taxable Inc. $1,540,000 $1,430,000 Invested Assets $13,000,000 $15,000,000 Spartans Inc. has a 10% hurdle rate. Calculate the following for each division: Return on Investment (ROI) North Division ________________ South…choose the letter of the correct answer Fara Corporation has accounts receivable of P400,000. Its manufacturing cost approximates 35 percent of selling price. The before-tax profit margin is 16 percent, and the inventory carrying cost is 4 percent of the selling price. Sales commissions are 7 percent of sales. What is Fara's average investment in accounts receivable? a. P64,000.00b. P84,000.00c. P164,000.00d. P184,000.00e. P284,000.00