Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

q . 1 4 . A company paid an annual dividend of $ 1 . 4 9 per share last month. The company is planning

q.14. A company paid an annual dividend of $1.49 per share last month. The company is planning on paying $1.56, $1.62, and $1.69 per share over the next three years, respectively. After that, the dividend will be constant at $1.75 per share per year. What is the market price of this stock if the market rate of return is 8.1 percent? Answer: $_
q18. An investment requires an initial cash outflow of $5,400, and it will bring in cash inflows of $3,400, $3,100, $2,700, $3,300, for the next four years, respectively. What is the internal rate of return (IRR) of this project?
Group of answer choices
43.65%
48.45%
41.25%
45.69%
q20. A company is considering a project which requires an initial cash outflow of $5,000, and it will bring in cash inflows of $2,900, $3,400, $2,600, $3,500, for the next four years, respectively. What is this project's the profitability index (PI), given a discount rate of 10%?
Group of answer choices
1.96
1.54
1.79
1.65
q21. The company purchased an equipment at $66,330. Two years later, the equipment is sold for $30,150. The equipment is classified as five-year property for MACRS. The MACRS annual depreciation rates are 20%,32%,19.2%,11.52%,11.52%,5.76%, for Years 1 to 6, respectively.What is the after tax salvage value of this sale at the year 2? Company's tax rate is 34%.(Round answers to two decimals, such as 1234.78)"
q22. Your company is considering a new project of 3 years. The initial investment on the the machine costs $370,185, and will be depreciated on a straight-line basis to zero over the project life. The machine will become worthless in the end. The project will brings in annual operating cash flow of $250,125.It also requires an additional investment in net working capital of $6,000 initially, which will be fully recovered at the end of the project. The tax rate is 26%. The discount rate is 15%. Please compute the NPV of this project. (Round answers to two decimals, such as 1234.78)

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

Essentials Of Health Care Finance

Authors: William O. Cleverley, James O. Cleverley, Paula H. Song

7th Edition

0763789291, 978-0763789299

More Books

Students also viewed these Finance questions

Question

7. Explain how an employee could reduce stress at work.

Answered: 1 week ago