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    Calculating WACC - Weston Industries

    Calculating WACC Weston Industries has a debt-equity ratio of 1.5. Its WACC is 12%, and its cost of debt is 12%. The corporate tax rate is 35%. a. What is Weston's cost of equity capital? b.What is Weston's unlevered cost of equity capital? c. What would the cost of equity be if the debt-equity ratio were 2? What if it

    Kerch Manufacturing Equity Accounts

    Equity Accounts Following are the equity accounts for Kerch Manufacturing: Common stock,$0.50 par value $ 165,320 Capital surplus 2,876,145 Retained earnings 2,370,025 Total $5,411,490 a. How many shares are outstanding? b. At what average price

    Firm Value and Financial Leverage

    1) Firm value is calculated by adding expected cash flow to the firm's cost of capital under each capital structure. True or False. 2) The degree of financial leverage measures the sensitivity of_______ to changes in ________. a) net sale, EBIT. b) EBIT, net sales c) EBIT, EPS. d) EPS,EBIT. 3) Explain how div

    Internal Rate of Return

    1) What is the internal rate of return (IRR) for a project whose intitial after tax cost is $5,000,000 and it is expected to provide after tax operating cash flows of ($1,800,000) in year 1, $2,900,000 in year 2, $2,700,000 in year 3, and $2,300,000 in year 4 ? 2) A firm is evaluating a proposal that has an initial investment

    Annual Depreciation - Engineering Economic

    A $100,000 piece of testing equipment was installed and depreciated for 5 years. Each year the end-of-year book value decreased at a rate of 10% of the book value at the beginning of the year. The system was sold for $24,000 at the end of 5 years. a) Compute the amount of the annual depreciation.

    Return on assets using Dupont Equation

    Please help with the following problems. 1) What would be the return on total assets of a firm if net income is $50,000 , total sales are $100,000 , and total assets are $175,000 ? 2) If the total assets turnover of firm is 1.5 , total assets are $500,000 , and net income is $50,000 , what is the margin ? 3) Assu

    Personal financial planning

    In what areas of personal financial planning are the concepts of (a)future value (b) present value (c) ordinary annuities useful . Kindly explain and give a few examples if possible.

    Article Review - e-business and intellectual property

    Using the Internet, locate an article specifically related to e-business and intellectual property. And prepare a 350-400-word review of the article. Your review should assess the different types of and legal protections for intellectual property. Be sure to analyze the legal issues of e-business to include intellectual property

    Present Value - Mixed streams and Comparison

    Consider the mixed streams of cash flows shown in the following table. YEAR A B 1 $50,000 $10,000 2 $40,000 $20,000 3 $30,000 $30,000 4 $20,000 $40,000 5 $10,000 $50,000 Totals

    Difference in Future Value

    You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today?

    calculated Internal rate of return through excel function.

    PPG manufactures an epoxy amine that is used to protect the contents of polyethylene terephthalate(PET)containers from reacting with oxigen. The cash flow (in millions)associated with the process is show below. Determine the rate of return. YEAR COST,$ REVENUE,$ 0 -10

    Three Dog Bakery: Understanding Cost Terms

    Please see attachment: Answer Questions 1, 3 & 4. 1) To what cost objects could Three Dog Bakery trace its costs? 3) What sectors- manufacturing, merchandising, or service - does Three Dog Bakery operate in? Why are they classified this way? 4) When Wal-Mart purchased Lick'n Crunch cookies for sale in its stores, is

    Ratios and Financial Planning at East Coast Yachts

    Please see the attached file. RATIOS AND FINANCIAL PLANNING AT EAST COAST YACHTS Dan Ervin was recently hired by East Coast Yachts to assist the company with its short-term financial planning and also to evaluate the company's financial performance. Dan graduated from college five years ago with a degree in finance, and h

    Nikita Khrushchev

    If you were given the responsibilities of an economic advisor to Nikita Khrushchev of the Soviet Union. How would you, as a central planner, decide what, how, and for whom to produce goods and services in a country of roughly 123 million people at the time? How successful your plan would be?

    Calculating Interest Rate

    Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values: Present Value Years Future Value $400 11 $648 $183 4 $249 $300 7 $300 Please show me how you calculated the problem so I can do it for my paper. These are not the

    Your uncle has given you three alternatives for your inheritance.

    Your uncle has given you three alternatives for your inheritance. You can have $10,000 now; $2,000 per year for the next eight years; or $24,000 at the end of eight years. Which inheritance alternative would be best and why? The discount rate is 6% (Explain your answer fully)

    ABC Inc., a retailer, had the following account balances as of April 30, 2006

    ABC Inc., a retailer, had the following account balances as of April 30, 2006: Cash . . . . . . . . $ 5,050 Accounts Receivable . .2,450 Inventory . . . . . . .8,000 Land . . . . . . . . .13,000 Building . . . . . . .12,000 Furniture . . . . . . .2,000 Notes Payable . . . . . . . . . . . . . . $12,500 Accounts Payable .

    Expanded Accountin Equation

    Expanded Accounting Equation For the following four cases, use the expanded accounting equation to compute the missing quantity. Assets Liabilities Capital Stock Retained Earnings Case A $20,000 $ 8,000 A $ 3,500 Case B 16,000 B $ 5,000 2,000 Case C

    You are contemplating the purchase of an office building.

    You are contemplating the purchase of an office building. Next year net rental income will be $400,000, which will grow at 4% per year. You believe that in 10 years the office building could be sold for $7.4 million. The appropriate discount rate for investments of this type is 12%. What is the most you should be willing to pay

    Relevant and Irrelevant Cost

    Which of the following distinctions helps to explain the difference between relevant and irrelevant cost? accounting cost versus direct cost historical cost versus replacement cost sunk cost versus fixed cost variable cost versus incremental cost