Business, 17.12.2019 04:31 wtfcmd

Carson electronics uses65 percent common stock and 35 percent debt to finance its operations. the aftertax cost of debt is 5.8 percent and the cost of equity is 16.1 percent. management is considering a project that will produce a cash inflow of $42,000 in the first year. the cash inflows will then grow at 3 percent per year forever. what is the maximum amount the firm can initially invest in this project to avoid a negative net present value for the project?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 16:50

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

Answers: 2

Answer

Business, 21.06.2019 18:20

Alyeska services company, a division of a major oil company, provides various services to the operators of the north slope oil field in alaska. data concerning the most recent year appear below: sales $18,000,000 net operating income $6,300,000 average operating assets $35,200,000 1. compute the margin for alyeska services company. (round your answer to 2 decimal places.) 2. compute the turnover for alyeska services company. (round your answer to 2 decimal places.) 3. compute the return on investment (roi) for alyeska services company. (round your intermediate calculations and final answer to 2 decimal places.)

Answers: 1

Answer

Business, 21.06.2019 20:40

Astock is selling today for $50 per share. at the end of the year, it pays a dividend of $3 per share and sells for $58. a. what is the total rate of return on the stock? (enter your answer as a whole percent.) b. what are the dividend yield and percentage capital gain? (enter your answers as a whole percent.) c. now suppose the year-end stock price after the dividend is paid is $42. what are the dividend yield and percentage capital gain in this case? (negative amounts should be indicated by a minus sign. enter your answers as a whole percent.)

Answers: 1

Answer

Business, 22.06.2019 02:30

Atax on the sellers of coffee will a. increase the price of coffee paid by buyers, increase the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. increase the price of coffee paid by buyers, increase the e ffective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. d. increa se the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.

Answers: 3

Answer

You know the right answer?

Carson electronics uses65 percent common stock and 35 percent debt to finance its operations. the af...

Questions