I need your help with the following Homework 8 They are six questions Final 2024

I need your help with the following:

• Homework 8: They are six questions.
• Final Exam: it is 11 questions. I need you to do the same you did for the midterm; however, this time I need the word file and the screen shots you will take to be combined in only one PDF file like the attached one.

Fin-500-p 3004-17tw3 An

Test 10-4 my financial lab : exam 2

This question: 13 pts

(Related to checkpoint 11.1 and Checkpoint 11.10) (NPV,PI,and IRR caicuiations)  Fijisawa Inc, is considering a major expansion of its product line and has estimated the follow cash flows associated with such an expiation. The initial outlay would be $1,940,000,and the project would generate cash flows of $400,000 per year for six years. The appropriate discount rate 4.8 percent. 

a. Calculate the net present value.

b. Calculate the profitability index.

c. Calculate the internal rate of return.

d. Should this project be accepted? Why  or why not?

TEST:10_4  My Financial LAB: Exam 2

This Question: 12 pts

(Cost of debt) Belton Distribution Company is issuing a $1,000  par value bond that  pays 7.0 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $958 for the bond. The Company is in the 18 percent marginal tax bracket. What is the firm’s after-tax cost of the bond?

Test:10-4 My Financial Lab: Exam 2

This Question:13 pts

(Related to Checkpoint 10.1) (Common stock valuation) Header Motor Inc. paid a $4.17 dividend last year. At a constant growth rate of 4 percent, what is the value of the common stock if the investors require a15 percent rate of return?

Test:10-4 My Finance Lab: Exam2

This Question:12 pts

(Cost of preferred stock)Your firm is planning to issue preferred stock. The stock is expected to sell for $97.49 a share and will have a$100 par value on which the firm will pay a 14.3  percent dividend. What is the cost of capital to the firm for the preferred stock?

Test:10-4My FinanceLab:Exam 2

This Question: 12 pts

(Preferred stock valuation) Pioneer’s preferred stock is selling for $66 in the market and pays a$4.60 annual dividend.

a.      If the market required yield is 8 percent what is the value of the stock for that investor

b.      Should the investor acquire the stock?

Test:10-4My FinanceLab:Exam 2

This Question: 12 pts

1.      All of the followings are bond rating agency except

a.      Fitches

b.      B. moodys

c.      Standard and poors

d.      Nyse bond raters

2.      Companys with higher bond rating can borrow money at a— rate

a.      fed fund

b.      lower

c.      higher

d.      prime

3.      unrated debt typically carries a higher interest rate because investors assume it must be……..

a.      higher risk

b.      lower risk

c.      risk free

Test:10-4My FinanceLab:Exam 2

This Question: 12 pts

(common  stock valuation) Gilliland motor inc. paid a $3.53 dividend last year. If Gillilands return on equity is 31 percent and its retention rate is 21 percent what is the value  of the common stock if the investors require a rate of return of 21 percent?

Test:10-4My FinanceLab:Exam 2

This Question: 13 pts

   (MIRR) star industries own and operates landfills for several municipalities throughout the Midwestern part of the U.S. star typically contracts with the municipality to provide landfill services for a period of 20 years. The firm then  constructs a lined landfill(required by federal law ) that has capacity for 5 years. The 10 million expenditure required to construct the new landfill results in negative cash flows at he end of years 5 10 and 15. This change in sign on the stream of cash flows over the 20 years contract period introduces the potential for multiple IRRs. So Stars management has decided to use the MIRR to evaluate the new landfill investment contracts . the annual cash inflows to star begin In year 1 and extend through year 20  are estimated to equal $3 million ( this does not reflect the cost of constructing the landfills every 5 years)star uses a 10% discount rate to evaluate its new project so it plans to discount all the construction costs every 5 years back to year 0 using this rate before  calculating the MIRR.

a.      What are the projects NPV IRR and MIRR

b.      Is this a good investment opportunity for star industries ? why or why not?

 

 

Test:10-4My FinanceLab:Exam 2

This Question: 12 pts

(measuring growth) if Pepperdine inc.s return on equity is 22 percent  and the management plans  o retains 62 percent of earnings for investment purposes what will be the firms growth rate ?

Test:10-4My FinanceLab:Exam 2

This Question: 12 pts

(related to checkpoint 12.1)( calculating changes in net operating working capital) tedious dimensions  is introducing a new product and has an expected change in net operating income of $7,90,000. Tedious dimensions has a 31 percent marginal tax rate. This project will also produce 195000 of depreciation per year.in addition this project will cause the following changes in year 1

What is the projects free cash flow in year  1