Harper Corp.’s sales last year were $395,000, and its year-end receivables were $42,500. Harper sells on terms that call for customers to pay 30 days after the purchase, but many delay payment beyond Day 30. On average, how many days…
A homeowner borrows $1,000,000 on a mortgage loan, and the loan is to be repaid in 30 equal payments at the end of each of the next 30 years. The lender charges 9.75% on the balance at the beginning of…
This is the second part of the question just previously asked regarding calculating the pre-tax weighted average cost of capital for my company. Your company’s marginal income tax rate is 40%. Please calculate the post tax WACC from the information…
Last year, a barber shop generated $100,000 in profit. Assume that the shop’s profits grow at 5% per year and that cash flows are discounted at 10% per year. If profits are received at the end of each year, what…
Discuss and provide two supporting examples to demonstrate how calculating the Present Value and the Future Value would be helpful for decision making.
Hernandez Engineering received a promissory note of $15,500 at 11% simple interest for 15 months from one of its customers. After 3 months, Union Bank discounted the note at a discount rate of 13%. Calculate the proceeds that Hernandez Engineering…
The MedTech Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million per year. a.Compute the firm’s earnings per share (EPS). b.Assuming that the…
What’s the future value of $1,500 after 5 years if the appropriate interest rate is 12%, compounded monthly? $1,922.11 $2,725.05 $2,600.11 $2,230.66 $2,342.19
A company is considering replacing a machine. The machine was purchased 6 years ago for $80,000 and has been depreciating over an 8-year life. The old machine will be sold for a market value of $14,500. The new machine costs…
You have $12,000 that you plan to invest in a compound-interest bearing interest. Your investment agent advises you that you can invest the $12,000 at 8% compounded quarterly for three years or you can invest it at 8 ¼ %…
