Question
please do the calculations step by step Six years ago, Excel Hydro Inc. purchased a mailing machine at a cost of $368,000. This equipment is
please do the calculations step by step
Six years ago, Excel Hydro Inc. purchased a mailing machine at a cost of $368,000. This equipment is currently valued at $172,200 on today's statement of financial position but could actually be sold for $211,400. This is the only fixed asset the firm owns. Net working capital is $121,000 and long-term debt is $82,500. The Vice President of Excel Hydro, Inc. wants to improve the current ratio on the company's next financial statement.
5. What is the book value of shareholders' equity?
6. Explain what the Vice President can legitimately do now to help accomplish this goal. Provide specific examples in your answer.
Excel Hydro plans to raise $6.2 million to expand their business. To accomplish this, they plan to sell 20-year, $1,000 face value, zero-coupon bonds. The bonds will be priced to yield 9.5%. The company plans on depositing $10,000 a year in real terms into your investment account for the next four years. The relevant nominal discount rate is 7.5% and the inflation rate is 4.2%.
7. What is the minimum number of bonds they must sell to raise the $6.2 million they need?
8. What are the deposits worth in today's dollars?
Excel Hydro Inc. has just issued dividends at $2 per share. There are 500,000 shares outstanding. The recently released Income statement shows net earnings of $1200,000. Dividends will grow at the rate of 10% for the next four years. The required rate of return is 12%.
9. Calculate the EPS of the company.
10. Calculate the Present value of the stock.
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