Answer:
If you considered that outstanding shares are equal that total shares, then: market capitalization is $1.085 billions; market value added is $477.5 millions and the market-ti-book ratio is 1.78.
Explanation:
To get these numbers we calculate as follow: market capitalization = number of shares multiply by the price per share (75$ x 14.5 million); marked value added = market capitalization - (total assets - liabilities) [1.085 Bn - (1 Bn - 390 m)] ; and market-to-book ratio = market capitalization / book value (1.085bn/610m)
Answer:
Ans. The value of investment after 2 years is $3,155.51
Explanation:
Hi, first we need toconvert that 9.80 percent, compounded quarterly into an effective quarterly rate, that is just by dividing by 4, since there are 4 quarters in a year, that is:
r(effective quarterly)= 9.8%/4 =2.45%
Now, since the rate is effective quarterly, the periods (time of the invesmet) has to be in quarters, so we multiply 2 years by 4 and we get 8 quarters.
With all the above information, we can go ahead and use the following formula in order to find the future value of this investment.

It should all look like this.

So, the future value of this investment is $3,155.51
Best of luck.
Answer:
The answer is
A. 26.46%
B. $5,958,354.88
Explanation:
A.
IRR = CFo/(1 + IRR)^0 + CF1/(1 + IRR)^1 + CF2/(1 + IRR)^2 + CF3/(1 + IRR)^3 + CF4/(1 + IRR)^4 + CF5/(1 + IRR)^5
CFo = -$10,000,000
CF1 = $3,000,000
CF2 = $3,500,000
CF3 = $4,000,000
CF4 = $4,900,000
CF5 = $5,000,000
Using a financial calculator;
IRR = 26.46%
B.
NPV = -CFo + CF1/(1+ r)^1 + CF2/(1 +r)^2 + CF3/(1 + r)^3 + CF4/(1 + r)^4 + CF5/(1 + r)^5
CFo = -$10,000,000
CF1 = $3,000,000
CF2 = $3,500,000
CF3 = $4,000,000
CF4 = $4,900,000
CF5 = $5,000,000
Using a financial calculator;
NPV = $5,958,354.88
Answer: 15%
Explanation:
IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.
Use Excel to find the IRR.
= IRR(-328325,115000,115000,115000,115000)
= 15%
As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.