Answer:
d. Sell 210 shares and loan out the proceeds at 8 percent
Explanation:
Since the firm is using 35 percent leverage, Jamie can offset the firm's leverage by selling shares and loaning out 35 percent of her investment at 8 percent interest.
Number of shares to be sold = 600 shares * 0.35 = 210 shares
Answer:
Hence, the annual operating cash flow is: $44860
Explanation:
Year 0 Year 1
Initital investment
Inflows $253,100
variable costs ($140,000)
fixed cost (53800)
Depreciton ($23,200)
Interest expense ($19,500)
Net cash inflows $16600
Tax at 40% ($6640)
Net Cashinflows after tax $9960
Add Depreciation $23,200
Interest net of tax $11.700
Operating cashflows $44860
Hence, the annual operating cash flow is: $44860
Answer:
bondholders will receive 8% of $1,000 = $80
Explanation:
The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.
The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.
Answer:
The answer is B.
Explanation:
Early majority are people that consume new goods and services after a way smaller people have tried it. They're after early adopters and before late majority.
Option A isn't correct because early adopters are customers to do new products after the innovators and before before the first majority.
Option C isn't correct because innovators are the important risk takers
Late majority is after early majority
Answer:
Net Present value of Project is $9,890
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Net Present Value of Property is $9,890
Workings are made in an MS Excel file, which is attached with this answer. please find it.
