A++PAPER;http://www.homeworkproviders.com/shop/ba-350-week-8-final-exam/ BA 350 WEEK 8 FINAL EXAM BA 350 Week 8 Final Exam Sum Solution ( 100% Correct All Sum + Steps by Steps Calculation with details) 2-4 – (Income Statement) Pearson Brothers recently reported an EBITDA of $7.5 Million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? 2-7 – (Corporate
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Course Project Part II Busn379 AirJet Best Parts Financial Analysis A financial decision for the purchase of new equipment will be based on the projects IRR and NVP. Below I have included the IRR and NPV to help assist in the financial decisions for the project. Capital budgeting for a new machine 1.) The IRR is 22.38% 2.) The NVP is $450,867.00 NVP formula is as followed: Year 1 = 1100000/(1+0.15)^1 = 1100000/1.15 = 956521.74 Year 2 = 1450000/(1+0.15)^2 = 1450000/1
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CHAPTER 2: ASSET CLASSES AND FINANCIAL INSTRUMENTS PROBLEM SETS 1. Preferred stock is like long-term debt in that it typically promises a fixed payment each year. In this way, it is a perpetuity. Preferred stock is also like long-term debt in that it does not give the holder voting rights in the firm. Preferred stock is like equity in that the firm is under no contractual obligation to make the preferred stock dividend payments. Failure to make payments does not set off corporate bankruptcy
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Competition Bikes. Inc. Canadian Expansion Summary Report This report is designed to provide an overview, analysis and summary on the viability of either merging or acquiring the Canadian Biking Inc. facility. The Canadian market is growing and may be a substantial opportunity for Competition Bikes, Inc. This report will provide a “summary” of the following: · Capital structure options · Capital structure justification · Capital budget areas of concern · Working capital for expansion · Expansion
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ARTICLES OF INCORPORATION OF " KNOW ALL MEN BY THESE PRESENTS: The undersigned incorporators, all of legal age, Filipino citizens and residents of the Philippines, have this day voluntarily agreed to form a stock corporation under the laws of the Republic of the Philippines. AND WE HEREBY CERTIFY: FIRST: That the name of said corporation shall be “ CORPORATION”; SECOND: That the purpose for which such corporation is incorporated is: To establish, maintain and operate restaurants, coffee
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Company X has two million shares of common stock outstanding at a book value of $2 per share. The stock trades for $2.50 per share. It also has $1 million in face value of debt that trades at 120% of par. What is its ratio of debt to value for WACC purposes? $2 million shares ⋅ $2.50 = $5,000,000 $1 million debt ⋅ 20% = $1,200,000 Total Value = $6,200,000 [pic] 4. What is the after-tax cost of preferred stock that sells for $5 per share and offers a $0
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Bonds $900 m long term debt = 60% $75 m preferred stock = 5% $ 525 m common equity = 35% ttl current asset = $ 1.5b According to SEC, the holding company can have a long term debt fro 45% to 65% - adding 37m in debt by issuing long term bonds will result to $937 m long term debt = 61% $75 m preferred stock = 5% $ 525 m common equity = 34% - still
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$6,950,000 r= 8.6% =PMT(rate,nper,PV,FV) m= 5 (years) Task 2: Evaluating Competitor’s Stock (1) The competitor I chose is Raytheon and the rate of return assuming the dividend growth rate is 5% would be 7.57%. Raytheon’s latest dividend amount was obtained from Yahoo Finance and used with the following formula. g = 5% R = ? D1 = 2.2 (dividend amount) P0 = $85.28 (stock price) Formula: R = D1/P0 + g Solution: R = 2.2/85.28 + .05 = .0757 = 7.58% (2) Current
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selling to yield 10%. Preferred Stock: 30,000 shares of preferred stock were sold six years ago at a par value of $50. The shares pay a dividend of $6 per year. Similar preferred issues are now yielding 9%. Equity: Taunton was initially financed by selling 2 million shares of common stock at $12. Accumulated retained earnings are now $5 million. The stock is currently selling at $13.25. Taunton's Target Capital Structure is as follows: Debt 30.0% Preferred Stock 5.0% Common Equity
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presGRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-15 FEBRUARY 2000 CISCO SYSTEMS: A NOVEL APPROACH TO STRUCTURING ENTREPRENEURIAL VENTURES Mike Volpi, vice president of business development at Cisco Systems, was in his office in San Jose at Cisco’s headquarters on June 27, 1997. He was considering a set of strategic questions that he had faced many times since joining Cisco’s business development group in 1994. Volpi’s colleagues had recently identified a new networking opportunity
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