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3 years ago

A firm, with an 18% cost of capital, is considering the

Business

1 answer:

mafiozo [28]3 years ago

3 0

Answer:

a. $316,920

Explanation:

The computation of the net present value for Project A is shown below:

The net present value = Cash inflow after considering the discount factor - initial cost or initial investment

Cash inflow after considering the discount factor = $7,400,000

The discount factor for 4 years at 18% = 0.5158

So, the cash inflow is

= $7,400,000 × 0.5158

= $3,816,920

And, the initial investment is $3,500,000

So, the net present value is

= $3,816,920 - $3,500,000

= $316,920

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g A department store chain has 15,100 shares of common stock outstanding at a price per share of $75 and a rate of return of 14%

horrorfan [7]

Answer:

10.79%

Explanation:

WACC = Pretax cost of debt*(1 - tax rate)*[(Number of bonds*Par value *selling price) / (Number of bonds*Par value*Selling price*Number of shares *Price per share)] + Rate of return*[(Number of shares*Price per share) / (Number of bonds*Par value*Selling price + Number of shares*Price per share)]

WACC = 0.065 *(1 - 0.29) * [(400*$1,500*98.2%) / (400*$1,500*98.2% + 15,100*$75)] + 0.14 x [(15,100*$75) / (400*$1,500*98.2% + 15,100*$ 75)]

WACC = 4.615%*[$ 589,200 / ($589,200 + $1,132,500)] + 0.14*[$1,132,500 / ($589,200 + $1,132,500)]

WACC= 4.615%*$589,200 / $1,721,700 + 0.14*$ 1,132,500/$ 1,721,700

WACC = 4.615%*0.342219899 + 14%*0.657780101

WACC = 1.579344834% + 9.208921415%

WACC = 10.79%

3 0

3 years ago

The nike swoosh is an example of ________ tools to create a position for the brand that distinguishes it from its competitors?

Jet001 [13]

Answer:

Symbolism

Explanation:

The nike swoosh is an example of position based on symbolism tools for the brand to distinguishes itself from its competitors?

Cheers

3 0

3 years ago

Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese y

larisa [96]

Answer:

$47,500

Explanation:

Calculation for How many dollars will you receive

Using this formula

Dollar to receive=Expected Japanese yen×Forward rate

Let plug in the formula

Dollar to receive= ¥5,000,000 x $.0095/¥

Dollar to receive= $47,500

Therefore the amount of dollars will you receive will be $47,500

8 0

3 years ago

The management accountant's responsibility under the Institute of Management Accountants (IMA) Statement of Ethical Professional

elixir [45]

Answer:

B) Integrity.

Explanation:

The Institute of Management Accountants is body, they are regarded as association for financial professionals and they were recognized globally.

The Four standards that is Been set up as ethical conduct in management accountants in IMA are;

✓competence

✓ confidentiality

✓integrity

✓credibility

Integrity which is one of the standards is essential, it involves the accountant been honest and be forthright when handling financial information of clients.

8 0

3 years ago

Open-end mutual funds are the most common type of investment company. Which of the following statements characterize these funds

svetlana [45]

Answer:

The answers are letter A and B.

Explanation:

A. Make automatic reinvestment easy, because the capital gains are automatically used to buy more shares.

B. Allow shareholders to convert shares from one fund to another within the same fund family, it is an interesting low rate exchange transaction. It costs $5 to $10 per transaction.

6 0

3 years ago