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Delman inc considering upgrading its manufacturing facility, and it is expected that the new equipment will cost $180,000. The project's is considering similar to the risk of the firm's other investments. the after-tax cash inflows attribute to this project are expected to increase by $50,000 every year over the next five years. The firm's marginal tax rate is 30%, its debt-to-equal ratio (using market values) is 60%, and its pre-tax cost of debt and equity are 8% and 12% respectively. the weighted average cost of capital appropriate for evaluating this project is closest to
Delman inc considering upgrading its manufacturing facility, and it is expected that the new equipment will cost $180,000. The project's is considering similar to the risk of the firm's other investments. the after-tax cash inflows attribute to this project are expected to increase by $50,000 every year over the next...
Which one of the following situations describes a secondary offering of stock by a company?
Which one of the following situations describes a secondary offering of stock by a company?A . The company has an initial public offering of its stock and its investment bank needs to add mote shares to the initial public offering to meet excess demand by investors B. After the lockup...
What is the price elasticity of demand for the company using the midpoint formula?
if a company increases the price of its product from $3010 $35, demand would decrease from 30, 000 units to 20.000 units. What is the price elasticity of demand for the company using the midpoint formula?A . 0.4 B. 0.5 C. 2.0 D. 2.7View AnswerAnswer: D
Marsalls Products Inc. manufactures and sells two products CD-ROMs and DVD's. The latest forecast on me products and their costs tor the coming year is shown in the following table.
Marsalls Products Inc. manufactures and sells two products CD-ROMs and DVD's. The latest forecast on me products and their costs tor the coming year is shown in the following table. Note 1: Fixed manufacturing cost of Si.500 000 per year is allocated to products based on the number of machine...
What is the corporation's debt to total capital in year 2?
Below is the income statement and balance sheet for a retail corporation. What is the corporation's debt to total capital in year 2?A . 71% B. 41% C. 19% D. 6%View AnswerAnswer: C
Risk maps are used in companies' enterprise risk management system because risk maps
Risk maps are used in companies' enterprise risk management system because risk mapsA . provide a quantitative tool that measures the probability of occurrence and the potential impact to calculate a potential loses B. rank risks. Based on the potential loss that could occur it a risk were to materialize...
SSA inc. issues 4% bonds with a lace value of $500,000 when the market rate of interest is 3% for similar bonds. The bonds mature in 10 years, and pay interest every six months.
SSA inc. issues 4% bonds with a lace value of $500,000 when the market rate of interest is 3% for similar bonds. The bonds mature in 10 years, and pay interest every six months. Which one of the following is closest to the amount of cash SSA will receive upon...
What will be the effect on pretax income if Studiers takes the special order?
Studler’s Restaurant is considering a contract to supply the weal senior citizen center with 10,000 meals. Regular sales at regular prices would be unaffected. The food cost for each meal s S3 Additional costs incurred as a result of the contract would De variable overhead of S 50 and variable...
A risk with a high frequency of occurrence but with a low impact, is best managed by which one of the following risk response strategies?
A risk with a high frequency of occurrence but with a low impact, is best managed by which one of the following risk response strategies?A . Risk avoidance B. Risk acceptance C. Risk transfer D. Risk reductionView AnswerAnswer: D
Based only on the relative currency appreciation or depreciation, which country's exports would likely have increased?
On January 1, 2008 the exchange rate between the U S dollar (S) and Indian Rupee (Rs) was $t = Rs 39. 2676. On January 1, 2009 the rate was Rs 1 = $0,0205. Based only on the relative currency appreciation or depreciation, which country's exports would likely have increased?A...
