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i need help with these please & thank you! Accepi My courses > FINA 3380 91L > Cost of capital Intro Amazon is planning to

i need help with these please & thank you!
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Accepi My courses > FINA 3380 91L > Cost of capital Intro Amazon is planning to launch a new version of its home-automation device, the Echo 2. The company has already spent 340 milion on research and development and needs another year and $30 million to complete the development. Arruazon has chosen to deduct all R&D expenditures as business expenses in the year that they are incurred The company also just spent $1.5 milion on a market research study and estimated the following sales data 1 2 Years after launch Units sold million Price per units 5 8 150 120 Because of accelerating technological innovation, the Echo 2 will be replaced by a new model for two years. The Echo 2 will reduce free cash flows from the earlier version, the Echo 1, by 529 million per year The costs of components and labor are 570 perunt, while ses and other expenses add up to $10 million in each year the product is so The factory that manufactures the Echo2 requires a 590 million investment right now and will take gre year to complete. The factory has a 5-year taxe completion and is depreciated straight to zoo. It could be sold for $54 million two years after completion. However, Amazon expects to the factory at the end of the project for the Echo 3, thus saving $2 million of the cost for the Echo 3 factory including a depreciation and tax effects To get production up and running, Aman has to buy components worth $5 milionimineately before the launch of the product, and add another $2 milion worth of components to its inventory in each of the following two years Asume the project is of proximately the same is the mosting operations. The marginal tax rates 34. The following data andort Stock mon shares outstanding one per i 510 tanda 514.52 and wondered to grow by per year Bond Don and book of month $1.000 MacBoo ccepi.com/solve Pannignment 18763&problemNo.21 Accepl My courses > FINA 3380 01L > Cost of capital factory including all depreciation and tax effects). To get production up and running, Amazon has to buy components worth $5 milon Immediately before the launch of the product, and add another $2 milion worth of components to its inventory in each of the following two years. Assume the project is of approximately the same risk as the firm's existing operations. The firm's marginal tax rates 34%. The following data are current Stock 9 milion shares outstanding price per share is 5181, test annual dividend was $1452 and dividends are expected to grow by 3% per year. Bonds: 1 bond issue outstanding book value of $600 milion, face value of $1,000,5% Coupon paid semi-annually, 20 years to maturity. YTM of 6% Mariot Treasurys have a return of 1% and the market rik premium is 8.5% Part 1 What is the cost of uity? Attempt 2/10 for 0.130 Correct Using the dividend growth model to fine cont of equity D RE + D1-9 1452-11 +0.03 11 -0.1126 0.03 MBOO S D G = 0.1126 Attempt 2/10 for 7 Part 2 What is the market value of the bond issue in 5 million? 0+ decimals Submit Attempt 2/10 for 7 pts Part 3 What is the weighted average cost of capital? 3 decimals Submit Attempt 1/10 for 10 pts Part 4 What is the annual depreciation in min? Suomi MacBo W D Accepi My courses > FINA 3380 91L > Cost of capital Attempt 1/10 for 10 pts Part 5 What is the operating cash flow in year 3 milion? 0+ decimal Submit Part 6 Attempt 1/10 for 10 por What is the cash flow from assets at the end of year 3 in mi? decimais Submit Part 7 What is the NPV of this project -Ath for 1 pts Oude Submit W S Accepi My courses > FINA 3380 91L > Cost of capital Intro Amazon is planning to launch a new version of its home-automation device, the Echo 2. The company has already spent 340 milion on research and development and needs another year and $30 million to complete the development. Arruazon has chosen to deduct all R&D expenditures as business expenses in the year that they are incurred The company also just spent $1.5 milion on a market research study and estimated the following sales data 1 2 Years after launch Units sold million Price per units 5 8 150 120 Because of accelerating technological innovation, the Echo 2 will be replaced by a new model for two years. The Echo 2 will reduce free cash flows from the earlier version, the Echo 1, by 529 million per year The costs of components and labor are 570 perunt, while ses and other expenses add up to $10 million in each year the product is so The factory that manufactures the Echo2 requires a 590 million investment right now and will take gre year to complete. The factory has a 5-year taxe completion and is depreciated straight to zoo. It could be sold for $54 million two years after completion. However, Amazon expects to the factory at the end of the project for the Echo 3, thus saving $2 million of the cost for the Echo 3 factory including a depreciation and tax effects To get production up and running, Aman has to buy components worth $5 milionimineately before the launch of the product, and add another $2 milion worth of components to its inventory in each of the following two years Asume the project is of proximately the same is the mosting operations. The marginal tax rates 34. The following data andort Stock mon shares outstanding one per i 510 tanda 514.52 and wondered to grow by per year Bond Don and book of month $1.000 MacBoo ccepi.com/solve Pannignment 18763&problemNo.21 Accepl My courses > FINA 3380 01L > Cost of capital factory including all depreciation and tax effects). To get production up and running, Amazon has to buy components worth $5 milon Immediately before the launch of the product, and add another $2 milion worth of components to its inventory in each of the following two years. Assume the project is of approximately the same risk as the firm's existing operations. The firm's marginal tax rates 34%. The following data are current Stock 9 milion shares outstanding price per share is 5181, test annual dividend was $1452 and dividends are expected to grow by 3% per year. Bonds: 1 bond issue outstanding book value of $600 milion, face value of $1,000,5% Coupon paid semi-annually, 20 years to maturity. YTM of 6% Mariot Treasurys have a return of 1% and the market rik premium is 8.5% Part 1 What is the cost of uity? Attempt 2/10 for 0.130 Correct Using the dividend growth model to fine cont of equity D RE + D1-9 1452-11 +0.03 11 -0.1126 0.03 MBOO S D G = 0.1126 Attempt 2/10 for 7 Part 2 What is the market value of the bond issue in 5 million? 0+ decimals Submit Attempt 2/10 for 7 pts Part 3 What is the weighted average cost of capital? 3 decimals Submit Attempt 1/10 for 10 pts Part 4 What is the annual depreciation in min? Suomi MacBo W D Accepi My courses > FINA 3380 91L > Cost of capital Attempt 1/10 for 10 pts Part 5 What is the operating cash flow in year 3 milion? 0+ decimal Submit Part 6 Attempt 1/10 for 10 por What is the cash flow from assets at the end of year 3 in mi? decimais Submit Part 7 What is the NPV of this project -Ath for 1 pts Oude Submit W S

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