Calculate Company X’s implied Enterprise Value by using the discounted cash flow method. Assume all cash flows are generated at the end of the year ( i.e., no mid-year adjustment):
A.$ 2,807.5 million
B.$ 2,951.2 million
C.$ 3,232.0 million
D.$ 2,759.0 million
St.Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $22,000 to $56,000 per year. The new machine will cost $100,500, and it will have an estimated life of 8 years and no salvage value. The new machine will be depreciated over its 5-year MACRS recovery period; so the applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. The applicable corporate tax rate is 35%, and the firm’s WACC is 15%. The old machine has been fully depreciated and has no salvage value. what is the replacement projects NPV ?
680 (2% discount for paying early) = 33,320 33,320 + 500 + 400 = 34,220 5. Garner Company exchanged 600 shares of Eller Company common stock, which Garner was holding as an investment, for equipment from West Company. The Eller Company common stock, which had been purchased by Garner for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount on West”s books of $32,000. What journal entry should Garner make to record this exchange? A. Equipment ……………………………………………………………….
mahmet eraned wages of 108,600 during 2011 he is single and claims two withholding allowances how much will mahmet’s employer withhold in social security taxes for the year?a-4,485.60b-6,060.30c-6,621.60d-6,733.20
I have an assignment due for my Business class. I need help with this assignment: The Animal Magnetism Inc. wishes to update their customer tracking system to more efficiently enter, access and maintain data on customers, their pets, the services provided, and billing. Note: Pets may receive more than one service. The following outlines the requirements obtained by a data system analyst by interviewing the company owner. Information will be entered and maintained in the system for the following: – The pet owner (customer) first & last name, mailing address, billing method (cash or credit card), and a data item for comments about the owner – Each pet’s name, identification number, estimated age, species, (dog, cat, rabbit, snake, etc.), the particular breed, if applicable the animal’s physical characteristics (color, distinguishing markings, etc.), an indicator that the animal is either domesticated or wild, and also a comments block for miscellaneous other information – Each pet service performed by the company, will be maintained in a Service record indicating for each Pet: – Type of service given (or to be given), including such things as shampoo, grooming cut, toenail clip, temporary boarding during owner vacations, etc. – Date a Service was performed or the Appointment Date for a service. – Date of each prior service rendered for each animal. – Fee for the service performed. Create the Context diagram scope Using the five-step systematic approach, create a checklist to manage this project. Identify questions you have for the client State any assumptions you makeWould some on be able to put this together?
Context Diagram Checklist for projectThe five phases to a systematic approach to project development: 1. Project initiation2. Project planning3. Project execution4. Project controlling5….
John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. The company’s S corporation election was made on January 15, 2008. The following information was taken from the income statement for 2014.
Interest income $ 100,000
Gross sales receipts 2,410,000
Beginning inventory 9,607
Direct labor (203,102)
Direct materials purchased (278,143)
Direct other costs (249,356)
Ending inventory 3,467
Salaries and wages (442,103)
Officers’ salaries (150,000)
Repairs (206,106)
Depreciation expense (15,254)
Interest expense (35,222)
Rent expense (operating) (40,000)
Taxes (65,101)
Charitable contributions (cash) (20,000)
Advertising expenses (20,000)
Payroll penalties (15,000)
Other deductions (59,899)
Book income 704,574
A comparative balance sheet appears below.
January 1, 2012 December 31, 2012
Cash $ 47,840 $ ?
Accounts receivable 93,100 123,104
Inventories 9,607 3,467
Prepaid expenses 8,333 17,582
Building and equipment 138,203 185,348
Accumulated depreciation (84,235) (?)
Land 2,000 2,000
Total assets $214,848 $844,422
Accounts payable $ 42,500 $ 72,300
Notes payable (less than 1 year) 4,500 2,100
Notes payable (more than 1 year) 26,700 24,300
Capital stock 30,000 30,000
Retained earnings 111,148 ?
Total liabilities and capital $214,848 $844,422
Premium’s accounting firm provides the following additional information.
Distributions to shareholders $100,000
Beginnning balance, Accumulated adjustments account $111,148
Using the preceding information, prepare a complete Form 1120S and Schedule K-1s for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303. If any in- formation is missing, make realistic assumptions.
This problem concerns some extensions of the M-M theory. The M-M theorem assumes that the firm has only two classes of securities, perpetual debt and equity. Suppose that the firm has issued a third class of securities – preferred stock – and that y% of preferred dividends may be written off as an expense (0≤y≤1). Assume that the firm has preferred stock of face value FP, with a preferred dividend rate of rp. Preferred dividends and debt are riskless (use the risk free rate, rf). Assume that only corporate tax, τC, exists. No personal taxes. Also other assumptions of M-M hold. Rate of return of an unlevered company in risk-class k is ρU.a) What is the appropriate expression for the value of the levered firm?b) What is the appropriate expression for the after-tax cost of capital, ρτL?
According to initial MM Model, preferred stock is not a part of the borrowing for the company.According to the modified version, the preferred stock would be treated as debt and hence thevalue of…
You are 35 years old, and decide to save $5000 each year (with the first deposit one year fromnow), in an account paying 8% interest per year. You will make your last deposit 30 years fromnow when you retire at age 65. During retirement, you plan to withdraw funds from the accountat the end of each year (so your first withdrawal is at age 66). What constant amount will you beable to withdraw each year if you want the funds to last until you are 90?
Please fill in the remaining empty sheets in this document. Use the first tab to find the relevent Strike price/premium amounts. This is simple for finance experts with PAYOFF DIAGRAMS on excel. Thanks
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