Answer:
Operating cash flow= 30,160
Explanation:
Giving the following information:
Bennett Co. has a potential new project that is expected to generate annual revenues of $255,800, with variable costs of $141,200, and fixed costs of $59,200. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $21,000. The annual depreciation is $23,800 and the tax rate is 40 percent.
Revenues= 255,800
Variable cost= 141,200 (-)
Fixed cost= 59,200 (-)
Interest= 21,000 (-)
Depreciation= 23,800 (-)
EBT= 10,600
Tax= 4240 (-)
Depreciation= 23,800
Operating cash flow= 30,160
Natural resources are things in the environment that can hold value:
Water, wind, coal, minerals, natural gas, metals, etc.
Answer:
Price = $4.88
Explanation:
First, find the dividend per year;
D1 = 2.60
D2= 0
D3= 0
D4= 0
D5= 0
D6= 0
D7 (Onwards) = 1.30
Next, find the PV of each dividend given a rate of 18%
PV (D1) =2.60/(1.18) = 2.2034
PV (D1 to D6) = 0
PV (D7 onwards ) = = 2.6753
Price = 2.2034 + 2.6753
Price = $4.88
Answer:
Explanation:
Present Value (P) =550,000
Future Value (S) = ?
Interest rate (i)=5%
Period (n)=15years
S=P(1+i)^n
S=550,000(1+.05)^15
S=1,143,410