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3 years ago

Malholtra Inc. is considering a project that has the following cash flow and WACC data.

Business

1 answer:

Blababa [14]3 years ago

3 0

Answer:

The correct option is B,15.65%

Explanation:

Modified Internal Rate of Return(MIRR) can be determined by using the excel MIRR function,whose formula is given below:

=MIRR(values,finance rate,reinvestment rate)

The values are the cash inflows and the initial capital outlay of $850

the finance rate is the same as the reinvestment of 10% which is the rate of return that would make the investment present values of cash inflows equal the initial investment

MIRR=15.65% as found in the attached.

Download xlsx

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The stock of Canadian Ski Wear is currently trading at $45 a share and the company is expected to pay a dividend of $1.50 a shar

Triss [41]

Answer:

The expected return on the company common stock is 4,03%

Explanation:

We can use the dividend growth model to determine the expected return on the company's common stock.

The formula is as follows P = $D^{1}$ / ( k - g )

Where P = fair price of share ( current share price )

g = dividend growth rate (4%)

k = required rate of return

D = dividend expected in the following year ($1,50)

We need to solve for k and rearrange the formula to solve for K.

k = D/p + g

k = 4,03%

If we substitute K into the original formula we also end up with P = 45 which is the current share price.

5 0

3 years ago

A cable TV company redesigned jobs so that one employee interacts directly with customers, connects and disconnects their cable

allsm [11]

Answer:

a. increasing job enrichment by establishing client relationships

Explanation:

The job enrichment is the technique for motivation which is given by the business organization with the view that the employee performs his best by giving him additional responsibilities so that the organization can achieve its targets in an efficient and effective manner.

The self -reinforcement is that technique for motivation in which the employee motivates himself so that he is able to work in the best manner.

The job rotation is that technique for motivation in which the employee assigned the two or more tasks in different rotations

Job specialization means that the person who has the interest will take that department. Example - marketing, finance, human resource

The job feedback is given by the employee regarding the salary package, working environment, benefits, etc

Hence, in the given situation the most appropriate option is a.

4 0

3 years ago

A new investment project currently under consideration has a negative net present value of $85,000. The project has a life of 10

KIM [24]

Answer:

correct option is $12,668

Explanation:

given data

net present value = $85,000

time = 10 year

rate of return = 8%

solution

we apply here formula for Present Value of annual additional cash flow that is

Present Value of annual additional cash flow = Annual cash flow × present value factor for an annuity ............................1

put here value

$85,000 = Annual cash flow × 6.71

Annual cash flow = $12,668

so here correct option is $12,668

3 0

3 years ago

Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job intervi

pav-90 [236]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Inventory information:

DM:

Beginning = $59

Ending= $ 66

Direct materials purchased 5,260

Work-in-process

Beginning= $87

Ending= $79

Finished goods

Beginning= $998

Ending= $1,024

Other information:

Administrative costs $ 3,200

Depreciation (Factory) 3,330

Depreciation (Machines) 4,730

Direct labor 7,600

Indirect labor (Factory) 1,780

Indirect materials (Factory) 590

Property taxes (Factory) 240

Selling costs 1,180

Sales revenue 35,610

Utilities (Factory) 640

1) We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Beginning work in progress inventory= 87

Direct materials= 59 + 5620 - 66= 5,613

Direct labor= 7,600

Factory overhead=Depreciation (Factory) + Depreciation (Machines) + Indirect labor (Factory) + Indirect materials (Factory) + Property taxes (Factory) + Utilities (Factory)= 3,330 + 4730 + 1780 + 590 + 240 + 640= $11,310

Ending work in progress=79

Cost of manufactured period=87+5613+7600+11310-79= $24,531

Cost of goods sold (COGS)= Beginning Inventory+Production during period−Ending Inventory

CGOS= 998 + 24531-1024= $24,505

Revenue= 35610

COGS= 24505 (-)

Gross profit= $11,105

Administrative cost= 3200

Selling costs= 1180

Total period costs= 4380 (-)

EBITDA= 6725

5 0

3 years ago

The total assets of brandon co. are $900,000 and its liabilities are equal to one-fourth of its total assets. what is the amount

yuradex [85]

900,000 / 1/4 = liabilities
900,000 - liabilities - stockholder's equity

900,000/4 = 225,000
900,000 - 225,000 = 675,000

5 0

3 years ago

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