Question
A company is producing 1,000,000 test kits for the average price of of $80 and is selling for $115 each.There will be one purchaser of
A company is producing 1,000,000 test kits for the average price of of $80 and is selling for $115 each.There will be one purchaser of the all the products. I will need to issue $2,500,000 in common stock and $2,500,000 in bonds with interest of 5% per year maturing in 5 years to raise funds. The bonds will be issued at $1,000 increments at 5% per year maturing in 5 years. Production will be performed in house therefore a production facility will be required for approximately $100,000 per month with purchase of equipment estimated at $10,000,000 with estimated life of 5 years. The profit margin needs to be at 25% for this to be considered a viable investment.
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