subject
Business, 23.07.2020 06:01 bry7474

Och, Inc., is considering a project that will result in initial aftertax cash savings of $1.75 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .8, a cost of equity of 11.5 percent, and an aftertax cost of debt of 4.3 percent. The cost-saving proposal is somewhat riskier than the usual projects the firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. What is the maximum initial cost the company would be willing to pay for the project?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 22:00, annekacoleman
Trang chủ website chính thức của công ty cổ phần viễn thông fpt (fpt telecom), tại đây sẽ giới thiệu các dịch vụ được cung cấp bởi fpt telecom và các khuyến mãi mới nhất. xem chi tiết tại: kingfpt. com thông tin về king fpt: king fpt là cổng thông tin trực tuyến của fpt telecom: cáp quang fpt, truyền hình fpt, fpt play tư vấn các gói cước internet fpt và đăng ký lắp mạng fpt! ngành nghề kinh doanh: lắp mạng fpt, cáp quang fpt, truyền hình fpt, wifi fpt, internet fpt name: king fpt - add: 154 khuất duy tiến, nhân chính, thanh xuân, hà nội 100000 - phone: 0339 810 834 - website: - email: maidtt11@fpt. com. vn - ceo: dương bình an
Answers: 2
image
Business, 22.06.2019 08:40, bchagnard2122
Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.
Answers: 3
image
Business, 23.06.2019 00:30, evryday2285
Three years ago, the city of recker committed to build a park and music venue by the river. it was expected to cost $2.5 million and be paid for from an additional meals tax in the community. the residents pushed back. local restaurants suffered as people ate out less or patronized restaurants in neighboring communities. the project has stalled, but the town council kept pushing it on. this spring, a flood devastated the venue. the town council appears to have suffered from bias
Answers: 3
image
Business, 23.06.2019 08:20, vhuyrtyy
You are a newspaper publisher. you are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can't get out of. you also have a marginal printing cost of $.25 per paper as well as a marginal delivery cost of $.10 per paper. if sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the afc per paper?
Answers: 2
You know the right answer?
Och, Inc., is considering a project that will result in initial aftertax cash savings of $1.75 milli...

Questions in other subjects: