Question and answer
Question not found
Ask a question
Not a good answer? Get an answer now. (Free)
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Hi
Weegy: hi, how can i help you ? User: . Rent-to-Own Equipment Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Rent-to-Own's required rate of return is 8%. What is the net present value of this project? (Points : 1) $104,089 $100,328 $96,320 $87,417 Weegy: internal rate of return = -750,000 +[350,000/(1 + 0.08)^1]+[325,000/(1+.08)^2]+[150,000/(1+.08)^3]+[180,000/(1+.08)^4] -750,000+ 324,074+278,635+119,075+132,305 Internal Rate of Return is $104,089 (answer) (More)
Question
Expert Answered
Asked 11/25/2012 7:13:20 PM
0 Answers/Comments
hi
Weegy: Hello! Do you have a question today? User: . Kelly Corporation will issue new common stock to finance an expansion. The existing common stock just paid a $1.50 dividend, and dividends are expected to grow at a constant rate 8% indefinitely. The stock sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. What is the cost of new common stock be for Kelly Corp.? (Points : 1) 11.33% 11.51% 11.60% 11.79% 12.53% Weegy: The answer is 11.79% Dividend just paid (D0) = $1.50 Expected dividend growth rate (g) = 8% Current stock value = $45 Flotation expenses = 5% Cost of new common stock (R) =? Cost of new common stock (R) = [(D1 / {P0 – F}] + g D1 = $1.50 (1+0.8) D1 [ = $1.62 Flotation Costs = 5% of selling price Cost of new common stock (R) = [($1.62 / {$45 - $2.25}] + 0.08 Cost of new common stock (R) = = [$1.62 / $42.75] + 0.08 Cost of new common stock (R) = 0.11789 (or) 11.79% Cost of new common stock (R) = 11.79% www.transtutors.com/questions/tts-finance-3-prob-151888.htm ] (More)
Question
Expert Answered
Asked 11/25/2012 7:27:11 PM
0 Answers/Comments
A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $925. If the corporation sells more bonds it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital?
Weegy: 3.74% $1,000 and a coupon rate of 5%- - - - - - - - -50 5.96% after tax= 5.96%(1-35%)= 3.74% User: Welltran Corp. can purchase a new machine for $1,875,000 that will provide an annual net cash flow of $650,000 per year for five years. The machine will be sold for $120,000 after taxes at the end of year five. What is the net present value of the machine if the required rate of return is 13.5%. (Points : 1) $558,378 $513,859 $473,498 $447,292 Weegy: $447,292 (More)
Question
Expert Answered
Asked 11/25/2012 8:04:23 PM
0 Answers/Comments
hi
Weegy: Hello, what question can I help you with? User: The simulation approach provides us with (Points : 1) a single value for the risk-adjusted net present value. an approximation of the systematic risk level. a probability distribution of the project's net present value or internal rate of return. a graphic exposition of the year-by-year sequence of possible outcomes. Weegy: The answer is a probability distribution of the project's net present value or internal rate of return. The simulation approach provides us with a probability distribution of the project's net present value or internal rate of return. [ ] (More)
Question
Expert Answered
Asked 11/25/2012 8:28:16 PM
0 Answers/Comments
hi
Weegy: Hello and welcome to Weegy! Is there something I can help you with? User: A new machine can be purchased for $1,200,000. It will cost $35,000 to ship and $15,000 to modify the machine. A $12,000 recently completed feasibility study indicated that the firm can employ an existing factory owned by the firm, which would have otherwise been sold for $180,000. The firm will borrow $750,000 to finance the acquisition. Total interest expense for 5-years is expected to approximate $350,000. What is the investment cost of the machine for capital budgeting purposes? (Points : 1) $2,180,000 $1,780,000 $1,442,000 $1,430,000 Weegy: The answer is $1,430,000 $1,430,000 is the investment cost of the machine for capital budgeting [ purposes. ] (More)
Question
Expert Answered
Asked 11/25/2012 8:36:04 PM
0 Answers/Comments
18,460,801 questions answered
Popular Conversations
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2939 [Total 14649]| Ratings 11| Comments 2829| Invitations 0|Offline
S
L
Points 1480 [Total 3766]| Ratings 0| Comments 1480| Invitations 0|Offline
S
Points 883 [Total 915]| Ratings 1| Comments 873| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 786 [Total 14160]| Ratings 0| Comments 786| Invitations 0|Offline
S
L
Points 777 [Total 1298]| Ratings 6| Comments 717| Invitations 0|Offline
S
1
L
L
Points 273 [Total 6667]| Ratings 0| Comments 273| Invitations 0|Offline
S
L
Points 163 [Total 1459]| Ratings 3| Comments 133| Invitations 0|Offline
S
Points 149 [Total 149]| Ratings 1| Comments 139| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 0| Comments 0| Invitations 5|Offline
S
Points 46 [Total 46]| Ratings 3| Comments 6| Invitations 1|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.