Get college assignment help at uniessay writers BCO 315 Summer 1 2019 Unit Two Assignment 1 Corporate Financial Advisors Ltd had 2015 net operating income of $775,000. It pays corporation tax at a rate of 28%, It’s after tax capitalisation rate (cost of cquity) is 13% 1 Calculate the value of the company if it is financed totally by cquity. If the company is 50 % funded by debt at 7.2 % p.a: interest what is the value of the company according to the NI model?
Exercice 3 A bond has the following characteristics: Coupon: 8% Maturity: 7 years Principal: $1000 The rate of the yield equals 12 %. Determine the present value of the bond. Determine the present value of the bond two years from now assuming interest rates didn’t change.
1. Corporate has decided to invest 1 mln.Eur in order to renew the equipment and improve the production capacity. The expected net cash flows for the next 5 years are as follows: 1 year- 170 000 Eur, 2 year – 230 000 Eur, 3 year -350 000 Eur 4 year-330 000 Eur, 5 year- 250 000 Eur. WACC for the next 5 years 6 %. Evaluate the project by calculating: a) discounted cash flows b) payback period and discounted payback period c) NPV, d) PI Use table for disclosing your calculations, don’t forget to write down the labels. the rate Corcotel Sorolla Palac.
In hydrogen, the transition from level 2 to level 1 has a rest wavelength of 121.6 nm. Suppose you see this line at a wavelength of 120.5 nm in Star A and 121. 2 nm in Star B. Calculate each star’s speed, and state whether it is moving toward or away from us.
554 Long-Lived Assets CHAPTER 10 construction of roads, highways, bridges, dams, tunnels, canals, mass transit facie, and The following information was taken from Granite’s annual report to shareholders. airport infrastructure. Granite Construction Incorporated Consolidated Statement of Income Years Ended December 31, 2011 2012 2010 (S in millions $10.6 (2.3) 81.0 $59.9 $10.4 S 9 Interest expense Capitalized interest Income before income taxes Net income (7.4) 89.4 S66.1 S24 Consolidated Statement of Cash Flows SI1.5 S16.2 S151 Cash paid during the year for interest Required: I. What is the underlying rationale for the capitalization of interest? 2. Assume that none of the assets to which 2012 capitalized interest applies have been com pleted and placed into service. Calculate the firm’s 2012 income before income tates assuming that no interest was capitalized in 2012. What is the percentage change from te reported amount? 3, Starting with net income of $59.9 million as reported in 2012, assume the same facts as in requirement 2 and recalculate Granite’s net income, 4. Briefly discuss the impact of capitalized interest on a firm’s future reported earnings
AUNA In North of Ain ness THAL Financial Markets and Institutions Midterm Exercise 1 A bond has the following characteristics: Coupon: 10% Maturity: 7 years Principal: $1000 The rate of the yield equals 12 %. Determine the present value of the bond. Determine the present value of the bond two years from now didn’t change assuming interest rates Exercise 2
Question I (35 %) Here are some important figures from the budget of Scarlet Inc., for the second quarter of 2019 June May April 378,400 €314,500 336,900 Credit sales 180,300 152,400 134,100 Credit purchases Cash disbursements 62,300 67,600 48,910 Wages, taxes, and expenses 11,320 11,320 11,320 Interest 79,900 122,000 0 Equipment purchases Additional information: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were 211,500 and credit purchases were 145,200 Cash balance at 1 April 2019 is 121,000. nstructions Using all the above information, complete the following cash budget. (25%) June May April Beginning cash balance Cash receipts: Cash collections from credit sales Total cash available Cash disbursements: Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance
FINM7406 International Finl Question 2 (13 marks) Dinkydown Ltd, a US company, is considering changing their current supplier which is based in Canada, to a Mexican supplier. They have placed an order in Mexican peso (currency code: MXN) for MXN 1 million. Dinkydown is concerned about the quality of the product, and has negotiated that if they are happy with the product, they will pay the invoice in exactly one quarters’ time. If they are not happy, they will not pay. Dinkydown faces the following interest and exchange rates: Spot rate: Forward rate Quarterly put option on dollars Quarterly call option on dollars USD quarterly interest rate (annualized) 5 % MXN quarterly interest rate (annualized) 10.5 % MXN 18.25/$ MXN 18.50/$ MXN 19/$ (2.5% premium on USD amount) MXN 17/$ (4 % premium on USD amount) What is the hedged cost of Dinkydown’s payable using a money market hedge? Show all your workings. (6 marks) a. cost of Dinkydown’s payable using an option? (ignore time value of money). Assume the forward rate is an unbiased estimator of the future b. What is the hedged spot rate. (2 marks) Draw a diagram showing the payoff to the option writer for one of the options used in part (b). Make sure you clearly label the exercise price and premium. (2 marks) C. d. Should Dinkydown use the money market hedge, or the option? Justify your answer. (3 marks)
Which one of the following actions by a financial manager is most apt to create an agency problem? Multiple Choice Refusing to expand the company if doing so will lower the value of the equity Increasing current profits when doing so lowers the value of the firm’s equity. Agreeing to pay bonuses based on the market value of the company stock rather than on the firm’s level of sales Refusing to lower selling prices if doing so will reduce the net profits. Refusing to borrow money when dolng so will create losses for the firm.
Question 9 (5 marks) Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody’s credit rating Aa Ва Fixed-rate borrowing cost 10.5% 12.0% Floating-rate borrowing cost LIBOR LIBOR 1% a. Calculate the quality spread differential (QSD) b. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. No swap bank is involved in this transaction. Assume the party, who pays floating-rate to his counterparty, needs to pay LIBOR.
Get college assignment help at uniessay writers IV. Calculations 2 questions 10 points 20 points) 1. Assume the following simplified balance sheet for the Baotou Bank Unit: Billion USS Assets Rate-sensitive assets Liabiliaies Rate-sensitive liabilities 7 21 Fixed-rate assets 3 Fixed-rate liabiliaies Using gap analysis, what is the effect of a 1 percent decrease in nrest rates What is the effect of a 2 percent increase in rates? How to deal with the expected to unfavorable interest rate changes? 2. If the required reserve ratio is 10 % , currency in circulation is $20 billion, checkable deposits are SI00 billion, and excess reserves total $1 billion, then what is the money multiplier spproximately 1 question 20 points-20 points) V. Discussion and comments n the principles of commercial banking management, how to manage a commercial Based o bank?
Construction Management Assignment on “Financial Planning” Fig. 1 (see overleaf) shows the AOA network of a construction project, with the precedence relationships and the activity durations indicated. The total costs of the different activities are summarized in the following table: Activity Total Cost ($) Duration (weeks) 1-2 2 4,800 2-3 10 16,000 2-4 10 18,000 2-5 8 16,800 3-6 6 15,000 4-6 4 8,000 4-7 17,600 8 5-7 6 15,600 6-8 6 16,200 7-8 5 10,500 8-9 6,900 3 The mark-up for the activities on the critical path is 15% and for the other activities is 10%. Progress measurements are made every four weeks with payments due four weeks later. 11% retention money is required for the project. The work on all the activities is to start at their earliest start times and to continue without delay. The value of work in progress is to be proportional to the time spent on it. the S-curve; the cumulative value vs. time curve; and (a) Draw: ii) ii) the cumulative income curve. (b) Draw the cash flow graph over the duration of the project. (c) Draw a graph of working capital vs. time (d) What is the total profit expected from the project? 5 6 5 9 8 10 7 2 2 6 10 6 6 3 Figure 1. AOA Network Diagram co
Required: Compute operating cash flows using the direct method Brief Exercise 14-32 Worksheet Approach During 20X2, Evans Company had the following transactions: a. Cash dividends of $6,000 were paid. b Equipenent was sold for $2.880, It had an original cost of $10.800 and a book value of s5.400. The loss is included in operating expenses c. Land with a fair market value of $15,000 was acquired by issuing common stock with a par value of $3,600, d. One thousand shares of preferred stock (no par) were sold for $4.20 per share. Evans provided the following income statemene (for 20X2) and comparative balance sheets: Sales $147600 Cost of goods sold (90,000) s 57,600 (39600) $ 18,000 Geuss margin Operating expenses Net income Evans Company Comparative Balance Sheets At December 31, 20X1 and 20×2 20X1 20X2 Assets S 32.400 s 66600 Cash Accounts receivables Inventory Plant and equipmene Accumulated depreciation Land 19,800 22.080 28.800 19,800 46800 36,000 (23,400) 9.000 (21,600) 24,000 Total assets Liabilities and stockholders’ equity Accounts payable Wages payable Bonds payable Preferred stock (no par) $113400 $146,880 S 14.400 $ 21.600 1,800 1,080 10,800 6,600 1,800 6,000 21.600 Common stock 18,000 Paid-in capital in excess of par Retained earmings Toeal liabilities and stockholders equity 18,000 29,400 48,600 60,600 $113,400 $146.880 Required: Company. Prepare a worksheet for Evans
Your company has two alternatives to consider for upgrading an existing production line. Details of each alternative are given below: Alternative A: PreTech Process Instrumentation Company (a vendor) will revamp all of the industrial process controls on the production line, provide free maintenance for the first year, and train all operators and supervisors for an initial contract price of $220,000. For each year of maintenance after year 1 ProTech will charge $14,500 with a projected increase every year of $1,000. This equipment upgrade only has a 6 year life due to the continual advancement of technology. At the end of those 6 years the equipment will have an estimated salvage value of $25,000 which PeTech agrees to pay and buy the equipment back. This upgrade will allow your company to increase production resulting in additional profits of $53,000 in year 1, then $85,000 in years 2 through 6. There is a tech upgrade required in year 3 that will cost $30,000. Alternative B: Flawless Controls Inc. is another vendor who has offered a process control upgrade deal. In this alternative Flawless Controls will provide the upgrade equipment at a contract price of $117,500 but your companies maintenance employees will need to install and maintain the equipment. The estimate for in-house installation is $43,700 upfront with a reoccurring cost of $12,700 for maintenance in year 1, increasing by 7% per year for the life of the equipment which is estimated to be 12 years. Tech upgrades will need to occur in years 4 and 8 at an estimated cost of $18,500 in year 4 and $21,000 in year 8. The equipment will have an estimated salvage value of $11,000 in year 12. Additionally there will be upfront training costs in year 1 of $37,500. This upgrade will allow your company to increase production resulting in additional profits of $35,000 in year 1, then $55,000 in year 2, S65,000 in year 3 and then increasing every year thereafter by $8,700. Using a present value comparison with least common multiple of lives (LCM approach), which alternative do you recommend? Using a planning horizon approach of 9 years, which alternative do you recommend? Using an annual value comparison, which alternative do you recommend? Draw the cash flow diagrams for each of the approaches above and assume your company’s MARR is 8%
10. Winnifred has loans totaling $8,500 when she graduates from college. The interest rate is APR she will be making monthly payments, and the loan term is 10 years. a. Calculate the monthly payment: Write the formula used. 5.45 %, (1 point) Show the values substituted into the formula. Calculate the result. Round your answer to the nearest whole cent. (3 points) | (2 points) b. Calculate the total amount paid over the life of the loan. I
MAT 120-Math for Liberal Arts Final Exam-Page 9 12. Madalyn wants to have $200,000 in her retirement account in 35 years. She found an investment with an APR of 2.05%. How much will she need to deposit each month? Write the formula used. a. (1 point) Show the values substituted into the formula. Calculate the result. Round your (3 points) answer to the nearest whole cent. Calculate the total amount that Madalyn will deposit into the account over the 35 b. years. (2 points)
Please fill the table below based on the information above e. Year 1 Year 2 Year 3 Year 0 Year 4 Year 5 Capital Expenditure A in NWC Oper CF Salvage CF Free CFs 15. Sway’s Back Store is considering a in new equipment. The equipment will be depreciated straight-line to a book value of $0.5 million over the 5-year life of the project. Annual sales from this project are estimated at $950,000. The variable cost is 40% of the annual sales and there is an annual fixed cost of $100,000. Sway’s Back Store will sell the equipment at the end of the project for a salvage value of $0.7 mil. Additional net working capital equal to $0.4 mil to support the project All of the new net working capital will be recouped desires a minimal 10% rate of return on this project. The tax rate is 40%. You can use the following tables to construct the cash flows necessary for the NPV calculation. (10 points) project which will require the purchase of $1.5 million at the end of the project. The firm
Consider the following information: Rate of Return if State Occurs State of Probability of Stock A Stock B Economy State of Economy Boom Stock C 60 09 .18 36 07 Bust 40 .15 -.05 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 15 percent each in A and B and 70 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) a. Expected return b. Variance 96
QUESTION 3 Nico bought 500 shares of a stock for $24.00 per share on January 1, 2013. He received a dividend of $2.50 per share at une end of 2013 and $4.00 per share at the end of 2014. At the end of 2015, Nico collected a dividend of $3.00 per share and sold his stock for $20.00 per share. What is Nico’s realized total rate of return? 0-12.5% -20.7% 20.7% 12.5%
6A.Calculate the total tax liability, average tax rate, and marginal tax rate for ABC Company, with a takable income of $400,000 Taxable Income Tax Rate 15% $0 to $50,000 $50,000 to $75,000 $75,000 to $100,000 $100,000 to $335,000 $335,000 to $10,000,000 25% 34% 39% 34%
You are given the following information: State of Return on Return on Stock B Stock A Economy Вear .113 -056 Normal .104 159 Bull 084 244 Assume each state of the economy is equally likely to happen. a. Calculate the expected return of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) a. Stock A Stock B % b. Stock A Stock B c. Covariance d. Correlation
The post Question: BCO 315 Summer 1 2019 Unit Two Assignment 1 Corporate Financial Advisors Ltd Had 2015 Net Operating Income Of $775,000. It Pays Corporation Tax At A Rate Of 28%, It’s After Tax Capitalisation Rate (cost Of Cquity) Is 13% 1 Calculate The Value Of The Company If It Is Financed Totally By Cquity. If The Company Is 50 % Funded By Debt At 7.2 % P.a: Interest … appeared first on uniessay writers.