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
19,144,729 questions answered
Popular Conversations
The slope of the line whose equation is 5x + 3y = -2 ...
Weegy: The slope of the line whose equation is 5x + 3y = -2 is a.) -5/3 User: The y-intercept of the line whose ...
1/24/2015 10:20:25 PM| 6 Answers
What is the value of b^2 - 4ac for the following equation? 2x^2 - 2x ...
Weegy: 10x^2 - 19x + 6 = 0 The solution formula is x = [-b ? sqrt (b^2 - 4ac)]/2a The numerators of the solution is: ...
1/24/2015 9:48:19 AM| 4 Answers
Which of the following constants can be added to x^2 - 3x to form a ...
Weegy: 8x^2 - 2x = 1; 8x^2 - 2x - 1= 0; (4x + 1)(2x - 1) = 0 (4x + 1) = 0; 4x = -1, x = -1/4 or (2x - 1) = 0; 2x = 1; ...
1/24/2015 9:39:47 AM| 3 Answers
Which of the following points is a solution to the system of ...
Weegy: The following points of(-3 , -2) is a solution to the system of equations shown y - x = -1 x + y = -5 . ...
1/24/2015 10:34:32 PM| 3 Answers
8y - 1 = x 3x = 2y Solve the system of equations by ...
Weegy: 2x + y = 6; y = 3x + 4 The resulting equation is 2x + (3x + 4) = 6. User: 2x + y = 7 y = x + 1 When the ...
1/24/2015 10:54:55 PM| 3 Answers
Brenda Lee has received a $10,000 gift from her mother and is trying ...
Weegy: B. return User: Terri Hamilton has just received $30,000 from an uncle who died and is trying to decide how to ...
1/24/2015 2:01:50 PM| 2 Answers
The graph of which of the following equations contains the points (2, ...
Weegy: 2x - y = 2 x + y = 4 3x = 6; x = 6/3; x = 2 2x - y = 2; 2(2) - y = 2; 4 - y = 2; -y = 2 - 4; -y = -2; y ...
1/24/2015 9:12:35 PM| 2 Answers
Weegy Stuff
S
L
Points 1655 [Total 1676]| Ratings 0| Comments 1655| Invitations 0|Offline
S
L
P
L
P
Points 1229 [Total 6506]| Ratings 0| Comments 1229| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
P
Points 563 [Total 15574]| Ratings 0| Comments 563| Invitations 0|Offline
S
L
Points 438 [Total 1119]| Ratings 2| Comments 418| Invitations 0|Offline
S
1
L
L
Points 178 [Total 6878]| Ratings 0| Comments 178| Invitations 0|Online
S
P
C
L
P
L
1
Points 90 [Total 6678]| Ratings 1| Comments 80| Invitations 0|Offline
S
Points 87 [Total 102]| Ratings 0| Comments 87| Invitations 0|Offline
S
L
Points 73 [Total 1634]| Ratings 0| Comments 73| Invitations 0|Online
S
Points 63 [Total 445]| Ratings 0| Comments 63| Invitations 0|Offline
S
Points 50 [Total 52]| Ratings 0| Comments 0| Invitations 5|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.