Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bames is acquiring Masco for $1,054.000 in cash. Barnes has a current market value of $5.380.000 whlle Masco's current market value is $945,000. The symenty

image text in transcribed
image text in transcribed
Bames is acquiring Masco for $1,054.000 in cash. Barnes has a current market value of $5.380.000 whlle Masco's current market value is $945,000. The symenty value from the acquisition is $318,000. What is the value of Barnes after the acquisition? $5,604,000$5,589,000$5,574,000$5,659,000$5,544,000 Kelso Corporation is considering leasing a new equipment. The lease lasts for 8 years. The lease calls for 8 payments of $208,000 per year with the first payment occurring. immediately. The equipment would cost $1,400,000 to buy and would be straight-line depreciated to a zero salvage value over 8 years. The actual salvage value is negitibie because of technological obsolescence. The firm can borrow at a rate of 5%. The corporate tax rate is 31%. What is the Npv of the lease relative to the purchase? $2,616.16$3,589.33$4,562.60$5.535.67$6,506.64

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wealth Habits Six Ordinary Steps To Achieve Extraordinary Financial Freedom

Authors: Candy Valentino

1st Edition

1394152299, 978-1394152292

More Books

Students also viewed these Finance questions

Question

What is the purpose of a statechart or state machine diagram?

Answered: 1 week ago

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago