You should do B It seems right
The answer is Principles.
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Answer:
21.77%
Explanation:
Year Cashflows
1 0 $ - 50,000
2 1 $ 11,000
3 2 $ 11,000
4 3 $ 11,000
5 4 $ 11,000
6 5 $ 11,000
7 6 $ 11,000
8 7 $ 11,000
9 8 $ 11,000
10 9 $ 3,000
Borrowing Rate = 11% = 0.11
Investment rate = 28% = 0.28
To calculate the PW(expense) and FW(revenue); we go by the formula:
$ 312061.0443
To calculate MIRR; we use the formula:
1+ MIRR =
1+ MIRR =
1+ MIRR = 1.2177
MIRR = 1.2177- 1
MIRR = 0.2177
MIRR = 21.77%
Answer:
($24,000, $0) and ($200,000, $2.78)
Explanation:
EBIT=24000
EPS=(24000-400000*6%)*(1-21%)/50000=0
EBIT=200000
EPS=(200000-400000*6%)*(1-21%)/50000=2.7808
Answer:
The number of shares that can be repurchased with $68,000 proceeds from issue of debt instrument is 3,147 shares as calculated below
Explanation:
The company's price per share is $21.61 ($388980/18000),hence the number of shares that can be repurchased with $68000 is computed thus:
number of shares to be repurchased=$68000/$21.61
=3146.691347
The number of shares to be repurchased is approximately 3147 shares