Assuming that the average duration of its $100 million of assets is four years, while the average duration of its $90 million of liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First
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Assuming that the average duration of its $100 million of assets is four years, while the average duration of its $90 million of liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to increase by ________ % (negative if it is a decline) of the total original asset value.
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- assuming that the average duration of its $100 million of assets is four years, while the average duration of its $90 million of liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of first national to increase by ______ % (negative if it is a decline) of the total original asset value.ECONOMICS At the end of 2011 Home Depot's total capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Give your answer in millions rounded to 2 decimal places.)Macmillan Learning Investment - End of Chapter Problem In your first year of work you deposit $1,200 in your retirement account at an 8% interest rate. Calculate how much your investment is worth after each of the given time periods. Round your answers to the nearest dollar. 5 years: $ 20 years: $ 40 years: $ 1763 4320 Incorrect 8640 Incorrect 10 years: $ 30 years: $ 50 years: $ 2160 Incorrect 6480 Incorrect 10800 Incorrect
- Question 7, P1-2 > Part 1 of 7 Accrual income versus cash flow for a period The Motor Corporation sold vehicles for $500,000 to one specific dealer during the year. At the financial year end, the dealer still owed The Motor Corporation $350,000. The cost of the vehicles sold was $400,000, and this cost was incurred and paid by The Motor Corporation. a. Determine the firm's net profit for the past year using the accrual basis of accounting. b. Determine the firm's net cash flow for the past year using the cash basis of accounting. c. The accountant and financial manager need to present the results to the CEO of The Motor Corporation. What will be their message regarding the performance of the corporation? a. Determine the firm's net profit for the past year using the accrual basis of accounting. Accounting View (accrual basis) The Motor Corporation Income Statement for the Year Ended 12/31 Sales revenueA cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000. The firm’s current fixed costs are $9,000 and current marginal costs are $15. The firm currently charges $18 per unit. If the interest rate is 5% then the present value of the cash flows is Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Use the direct capitalization approach to income valuation to calculate the market value of the warehouse that has been described below: Leasable space: Average rent: Expected annual rent growth: Other income: Expected annual growth in other income: Vacancy and collection losses: Operating expenses: Capital expenditures: Selling expenses: Discount rate: Going-in cap rate: Going-out cap rate: $3.13 million $2.93 million $2.19 million $219,378 I 50,000 square feet $5 per square foot per year 5% $2 per square foot per year 10% 5% of potential gross income 30% of effective gross income 5% of effective gross income 5% of future selling price 10% 7% 7.5%
- You are a consultant to a large manufacturing corporation that is considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now 0 1-10 After-Tax Cash Flow -85 19 The project's beta is 1.2. Required: a. Assuming that rf= 7% and E(TM) = 11%, what is the net present value of the project? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. b. What is the highest possible beta estimate for the project before its NPV becomes negative? Note: Round your answer to 2 decimal places. a. Net present value b. Highest betaIdentify specific asset, liability, and owner’s equity accounts that Cookie Creations will likely use to record its business transactionsPlease view the following video before answering this question. Excel Video Lesson: PV Financial Function Click here to access the TVM Factor Table Calculator Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $70,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $4,000 using the gang punch, but annual raw material costs would decrease $13,000. MARR is 4.75 %/year. Part a Your answer is incorrect. What is the present worth of this investment? S Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 1.5. eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer
- Please view the following video before answering this question. Excel Video Lesson: PV Financial Function Click here to access the TVM Factor Table Calculator Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $90,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $4,500 using the gang punch, but annual raw material costs would decrease $10,000. MARR is 5.25 %/year. Part a * Your answer is incorrect. What is the present worth of this investment? $ -29,598.08 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±5.1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The management's discount rate is 12%. The amount of cash inflows expected from the new investment are: Year-1 cash Inflow: $250,000 Year-2 cash Inflow: $400,000 Year-3 cash Inflow: $300,000 Year-4 cash Inflow: $200,000 What is discounted payback periods of the new investment? O A) 3,75 O B) 3,50 O C) 3,90 O D) 3,35 O E) 4,00Phil’s Flowers (PF) currently has 5,600,000 shares of stock outstanding that sell for $117 per share. Assuming no market imperfections or tax effects exist, what will be the total number of shares and the share price after each of the following? (Please consider each one independently). c) PF has a $2.50 cash dividend? (Step by step solutions )