Answered step by step
Verified Expert Solution
Question
1 Approved Answer
27. Marie's Fashions is considering a project that will require $39,000 in net working capital and $68,000 in fixed asses. The project is expected to
27. Marie's Fashions is considering a project that will require $39,000 in net working capital and $68,000 in fixed asses. The project is expected to produce annual sales of $73,000 with associated cash costs of $42,500. The project has a four-year life. The company uses straight-line depreciation to a zero book value over the life of the project. Ignore bonus depreciation. The tax rate is 25 percent. What is te operating cash flow for this project? (2 Points) $26,375 527.580 530,325 525.760 527.125 34. The market has an expected rate of return of 12.6 percent. The long-term government bond is expected to yield 4.8 percent and the U.S. Treasury bill is expected to yield 2.9 percent. The inflation rate is 3.2 percent. What is the market risk premium? (2 points) 8.8 percent 9.7 percent 9.9 percent 9.3 percent 6.9 sercent 35. Chelsea Fashions is expected to pay an annual dividend of $1.75 a share next year. The market price of the stock is $24.09 and the growth rate is 2.6 percent What is the cost of equity? (2 points) 7.98 percent 9.85 percent 9.55 percent 745 percent 738 percent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started