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juin [17]
3 years ago
6

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $25

0,000. The truck falls into the MACRS three-year class, and it will be sold after three years for $50,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,000. The truck will have no effect on revenues, but it is expected to save the firm $80,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flow for this project be during year 3
Business
1 answer:
JulijaS [17]3 years ago
5 0

Answer:

Please find the complete solution in the attachment file.

Explanation:

Please find the attachment table for the 3 years of cash flow:

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When opening a check account, the bank does not run an account verification if you provide a state-issued ID.
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5 0
3 years ago
Overview of financial planning
VMariaS [17]

Answer:

1. Operating plan.

2. Operating plan.

3. Financial plan.

4. Dividend policy.

5. B and C.

Explanation:

1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.

2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.

3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.

4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.

Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.

Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.

Hence, the following statements are true about financial planning;

I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.

II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.

6 0
3 years ago
Which banker would a software company most likely visit for help to raise large amounts of capital to acquire, or buy out anothe
N76 [4]

It should be noted that the banker that would be visited to raise large amounts of capital is an investment banker.

<h3>Who is an investment banker?</h3>

It can be noted that an investment banker simply means a person that is involved in helping to raise capital for large corporations.

In this case, the banker that a software company most likely visit for help to raise large amounts of capital to acquire, or buy out another company is an investment banker.

Learn more on investment banking on:

brainly.com/question/12301548

5 0
3 years ago
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Co
ale4655 [162]

Answer:

(a) the earnings per share = $3

(b) the price-earnings ratio = 8x

(c) the dividends per share = $0.25

(d) the dividend yield = 1.04%

Explanation:

Common Stock Outstanding = 5,250,000/25 = 210,000 shares

Preferred Stock Outstanding = 6,000,000/200 = 30,000 shares

Preferred Stock Dividend per share = $4

(a) Earnings Per Share

EPS = <u>Net Income - Preferred Dividend</u>

            Common Stock Outstanding

EPS = <u>750,000 - (30,000 * 4)</u>

                  210,000

EPS = <u>630,000</u>

           210,000

EPS = $3

(b) Price-Earnings Ratio    

Market Price = $24

EPS = $3

P/E ratio = <u>Market Price</u>

                      EPS

P/E ratio = 24/3

P/E ratio = 8x

(c) Dividends Per Share

DPS = <u>               Total Dividends          </u>

             Common Stock Outstanding

DPS = 52,500/210,000

DPS = $0.25

(d) Dividend Yield

DY = <u>Dividend Per Share</u>

                   Price

DY = 0.25/24

DY = 1.04%

6 0
4 years ago
Use the following information for the next four questions.St. James, Inc. currently uses traditional costing procedures, applyin
Nonamiya [84]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Estimated overhead= $800,000

Total estimated direct labor hours= 4,000

Direct labor hours Beta= 1,200

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 800,000/4,000= $200 per hour

Now, we can allocate overhead to Beta:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 200*1,200= $240,000

6 0
3 years ago
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