Items\YearEBITFCInvWCInvDepreciationInterestNet Borrowing20239.471.301.881.130.591.01202414.441.542.621.540.821.32202518.542.763.800.081.271.62Terminal year(2026)27.553.614.9921.76-0.94Assume that tax rate is 0.3. Year 2026 is the terminal year. After 2026, the firm's FCFF will grow at 5% forever. Finally, assume that the firm'sdiscount rate is 11%. What is the value of the equity holders?hint: you need to use FCFE instead of FCFF (assume that FCFE will grow at the same constant growth rate)FCFF = EBIT(1 - Tax rate) + Dep - FCInv - WCInv.FCFE=FCFF - Int(1 - Tax rate) + Net borrowing.

The value of equity holders is the total value of a company's equity, reflecting the ownership…

Answered: Assume that tax rate is 0.3. Year 2026…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.
Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).
What amount of interest revenue should be recorded in 2021? *a. 490,000b. 480,000c. 438,000d. 391,800
*see attached What is the interest income for the current year? a. 1,297,905b. 1,357,905c. 900,000d. 870,168
What is the revenue earned from award credits for 2022? *see attached a. P 0b. P 28,000c. P 36,000d. P 116,000
Accounts Payable as of December 31, 2020 should amount to: *A. 531,000B. 600,000C. 627,000D. 1,827,000
Years Bank Loan advance2018 STANBIC 2,584,7352019. STANBIC. 3,946,591 2020. STANBIC 4,373,5292018. BARCLAYS 3,204,859 2019. ABSA 4,082,295 2019. Absa. 2,09,501 2020. ABSA. 244,620 2020. Absa. 4,481,173 Question: Calculate the Herfindahl-Hirschman Index (HHI) for each year using loan advances and comment on the level of competition.
Use the NPV method to determine whether Root Products should invest in the following projects: • Project A: Costs $275,000 and offers eight annual net cash inflows of $53,000. Root Products requires an annual return of 12% on investments of this nature. Project B: Costs $380,000 and offers 9 annual net cash inflows of $74,000. Root Products demands an annual return of 10% on investments of this nature. E(Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=8) Value 1-8 Present value of…
akeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress%3false hapter 11 Lab Application 全回 Sign ia еBook You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? (Click here to see present value and future value tables) Amounts of Value at the End Investment Rate Times of the Period $7,000 20% 16 years 612,094.91X $11,000 15% 9 years 184,644.26X $15,000 12% 5 years 95,292.71 X $36,000 10% 2 years 75,600.00 Feedback > Check My Work For each scenario, use the rate and time components to use the applicable time value of money table to determine the needed factor. Multiply the investment amount by the future value factor to determine the value of end of the period. 6:38 PM G O 4) ENG 13 68°F Sunny 10/26/2021 O P Type here to search hp %24 %24 %24
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I= PVrt I= 2830 X 8.9 X 25 73 =8625-684 (=$86-26 $5328 at 8% loan made on August 16 and due December 30. Find the interest
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Assume that tax rate is 0.3. Year 2026 is the terminal year. After 2026, the firm's FCFF will grow at 5% forever. Finally, assume that the firm discount rate is 11%. What is the value of the equity holders?