Answer:
The IRR (in %) for Project A is 31%.
Explanation:
Let IRR be x%
At IRR, present value of inflows = present value of outflows.
218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4
solving for x, we find:
x = 31%
Therefore, The IRR (in %) for Project A is 31%.
Answer:
d.) I and II
Explanation:
The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.
Answer:
The market-to-book ratio is: $2.96
Explanation:
The market-to-book ratio compares the market value of an organization with its book value. The formula to calculate market-to-book ratio is equal to the market price per share divided by the book value per share. So,
Market-to-book ratio= $36.08/$12.19
Market-to-book ratio = $2.96
