Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Several years ago the jakob company

15/10/2021 Client: muhammad11 Deadline: 2 Day

Question 1 Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following
data: D0 = $0.90; P0 = $30.00; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.60% 11.33% 8.37% 10.21%

Question 2 Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50),
the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity.
What is the company's WACC if all the equity used is from retained earnings?

7.07% 7.36% 7.67% 7.98% 8.29%

Question 3 Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00%
Year 0 1 2 3 4 Cash flows -$950 $525 $485 $445 $405

1.61 years 1.79 years 1.99 years 2.22 years 2.44 years 5 points

Question 4 Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual
coupon that is paid semiannually. The bond currently sells for $950, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? 4.81% 4.49% 4.31% 5.48% 5.30%

Question 5 Lasik Vision Inc. recently analyzed the project
whose cash flows are shown below. However, before Lasik decided to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much
did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected. Old WACC: 8.00% New WACC 8.50% Year 0 1 2 3 Cash flows -$1,000 $410 $410 $410

-$8.99 -$9.27 -$9.46 -$10.88 -$11.83

Question 6 Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project took place, the Federal Reserve changed interest rates and therefore the firm's WACC. The Fed's
action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's expected NPV can be negative, in which case it should be rejected. Old WACC: 10.00% New WACC: 11.25% Year 0 1
2 3 Cash flows -$1,000 $410 $410 $410 -$18.89 -$19.88 -$20.93 -$22.03 -$23.13

Question 7 Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows
-$650 $500 $500 $500 1.75years 1.83years 1.81years 1.47years 1.56years

Question 8 To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid
semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? 5.95% 5.63% 6.47% 6.15% 5.31%

Question 9 Fernando Designs is considering a project that
has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows -$900 $500 $500 $500 $500 1.88 years 2.09 years 2.29 years 2.52 years 2.78 years

Question 10 Stern Associates is considering a project
that has the following cash flow data. What is the project's payback? Year 0 1 2 3 4 5 Cash flows -$950 $300 $310 $320 $330 $340 3.06 years 3.24 years 2.97 years 3.70 years 3.49 years

Question 11 Ingram Electric Products is considering a project that has the
following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 9.50% Year 0 1 2 3 Cash flows -$800 $350 $350 $350 15.03% 13.73% 10.88%
12.95% 10.62%

Question 12 Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows -$950 $500 $500 $500 2.22years 2.04years 2.75years 1.69years
2.35years

Question 13
Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's MIRR can be less than the WACC (and even negative), in which case it will be rejected.
Old WACC: 11.00%
Year 0 1 2 3
Cash flows -$800 $350 $350 $350
8.86%
9.84%
10.94%
12.15%
13.50%
Question 14
Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected.
Old WACC: 10.00% New WACC 13.50%
Year 0 1 2 3
Cash flows -$1,000 $410 $410 $410
-$64.47
-$46.56
-$59.70
-$61.49
-$54.32
5 points
Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best selection criterion, while the CFO advocates the NPV. If the decision is made by choosing the project with the higher IRR rather than the one with the higher NPV, how much, if any, value will be forgone, i.e., what's the chosen NPV versus the maximum possible NPV? Note that (1) "true value" is measured by NPV, and (2) under some conditions the choice of IRR vs. NPV will have no effect on the value gained or lost.
WACC 8.50%
0 1 2 3 4
CFS -$1,100 $550 $600 $100 $100
CFL -$2,700 $650 $725 $800 $1,400

$84.43
$75.14
$79.36
$102.16
$105.54
Question 16
To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?
4.35% 4.58% 4.83% 5.08% 5.33%

Question 17
S. Bouchard and Company hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D0 = $0.85; P0 = $22.00; and g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $40.00. Based on the DCF approach, by how much would the cost of common from retained earnings change if the stock price changes as the CEO expects?
-1.49%
-1.66%
-1.84%
-2.03%
-2.23%

Question 18
Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected.
Old WACC: 10.00% New WACC 12.50%
Year 0 1 2 3
Cash flows -$1,000 $410 $410 $410
-$43.26
-$39.80
-$48.02
-$47.15
-$44.12
Question 19
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $25.00; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
12.26%
10.85%
13.24%
12.37%
11.72%
Question 20
Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings?
10.69%
11.25%
11.84%
12.43%
13.05%

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Maths Master
Quick Mentor
Solutions Store
Top Class Engineers
Top Academic Guru
Math Guru
Writer Writer Name Offer Chat
Maths Master

ONLINE

Maths Master

I reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade.

$49 Chat With Writer
Quick Mentor

ONLINE

Quick Mentor

I have worked on wide variety of research papers including; Analytical research paper, Argumentative research paper, Interpretative research, experimental research etc.

$25 Chat With Writer
Solutions Store

ONLINE

Solutions Store

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$41 Chat With Writer
Top Class Engineers

ONLINE

Top Class Engineers

As per my knowledge I can assist you in writing a perfect Planning, Marketing Research, Business Pitches, Business Proposals, Business Feasibility Reports and Content within your given deadline and budget.

$16 Chat With Writer
Top Academic Guru

ONLINE

Top Academic Guru

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$19 Chat With Writer
Math Guru

ONLINE

Math Guru

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$39 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Geography assignment3 - The outsiders full novel movie - MK405 Unit 7 Discussion - Abstract reasoning patterns list - English 102 research paper - Latent heat of ice - Direct and indirect interviews - Project constraints for a coffee shop - How to make a velocity time graph on excel - Business - 73-87 c10 motor mount perches - Heating curve of water lab data - Free printable sticker charts - Akbar shah khan najeebabadi wikipedia - Windshield survey stanhope and lancaster - Starbucks strategy of corporate responsibility is illustrated by - Flinders university sturt campus - “The Nightingale and the Rose” you have to choose a character from the short story and relate it to yourself - Sikhism cosmogony origin of the universe - Target corporation financial statements 2016 - Help needed - Hyundai iload overall length - Dicussion 3 ( Business Ethics) - Stagecoach x7 leicester to milton keynes - True love by william shakespeare - Automatic counter loop flowchart - Samples and data collection - Hilton seskin net worth - Human r - Identify a true statement about ethical decision making in business - Module 6 Discussion Question - Vcaa 2013 biology exam - Randall parker foods halal - Similarities between odysseus and telemachus - Wayne kerr electronics history - Chandler 1962 structure follows strategy - 4 spheres of earth - Blue sea systems add a battery kit - Discussion Board - Nursing - Discover academic excellence with SpeedyPaper.com - Scientific argumentative essay example - North american reggio emilia alliance - Criminology timeline - Medium voltage drives ppt - Goal Statement - All or nothing law - Marketing Plan - Concept map of memory system - Acap student log in - Current divider formula derivation - O neill kantian approaches famine summary - Thin client applications can seldom run within a computer browser - Breeding bird survey codes - Sadako and the thousand paper cranes chapter questions - Forklift standard operating procedures - Georgia state university history department - Tradoc pam 525 8 2 - Trade union studies leeds - What do the poets within beowulf sing about - Weinberg and gould 2006 - Classification and evolution of caminalcules answers - Why do seals pound tridents into coffins - Sex linked practice answer key - Life in saint domingue graphic organizer answers - Porter's five forces example starbucks - Australian army disqualifying medical conditions - Goeller scorecard - The history of vogue - Merchant of venice past exam papers - Disney erp system - Squares square roots cubes and cube roots pdf - 2 pages, double spaced, 12 pt font size writing - Development Economics - Attitude reflects leadership meaning - Load shedding east london - 2 questions managing change and innovation - Essay - N gregory mankiw principles of economics 6th edition pdf - Organizational behavior 13th edition 13th edition pdf - Features of case tools - Why do unicellular organisms divide - Bathe in reeking wounds - Legal environment - Nun - TLMT318 Week 4 Forum - Chlorine dioxide which is produced by the reaction - Pursuit of happiness background - Immigration officer jobs gatwick - Is nick carraway gay - Advertising in the New York Time for Kids - Abigail williams quotes crucible - Pluralist perspective of conflict - Motorcycle business plan pdf - Enron the smartest guys in the room ethical issues - Sace stage 2 chemistry - Employees with negative affectivity are inclined to - What is fortunato's weakness - Excel - You need to provide administrator permission to change these attributes