Get 20% Off + $20 Signup Bonus ! Limited Time, Hurry !
Get 20% Off + $20 Signup Bonus ! Limited Time, Hurry !
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

24 Pages
Professional Skills

Create a Word document called 'Critical Thinking' and write approximately 400 words (no less than 350 and no more than 450 words) describing why you need to be a critical thinker. Explain why it is im ...

Type

Thesis

Subject

2 Pages
Business Law

Question: 1. Using the 4 step process, consider whether the elements of intention and consideration have been satisfied in the above scenario. and 2. Using the 4 step process, also consider whethe ...

Type

Case Study

Subject

3 Pages
journal

Reflective Journal 3 Australia ranks among the highest [is currently ranked at number 2 out of almost 190 countries] on the Human Development Index [HDI]. The HDI includes a measure of a countryâ ...

Type

Thesis

Subject

2 Pages
managment accounting in decision making

It's 900 words report on the role of a management accounting for deciaion making journal ". My assignmentdeadline ia friday and i need it by tomorrow please. I'm really worried about it because I'm d ...

Type

Thesis

Subject

Finance

Question

Answered

Question1.

A 5-year project requires an initial investment of $100,000 in fixed assets. The fixed assets can be depreciated according to CCA at 20%, and are expected to have $20,000 of salvage value in five years. Fixed costs are $6,000 per year, variable costs are $12 each and the sale price is expected to be $18 each. The tax rate is 40%. The required return on the project is 12%.

What must be the annual unit sales for the investment to be worthwhile?

Question2.Dexter Ltd. is considering a toaster project. The production system will cost $500,000, can be depreciated according to CCA at 30%, and has a capacity of 20,000 toasters per year. The project is expected to last six years, and will have a salvage value of about $20,000. The variable costs are about $12 per toaster, and the fixed costs are $80,000 per year. Dexter has found that the cost of capital of other toaster manufacturers is 15%. The risk-free rate is 3%. Dexter pays tax at 34%.

 a. What is the present value of CCA Tax Shield?

b. If the annual unit sales are 10,000 toasters per year, what must be the selling price, per toaster, which will make the project worthwhile?

c. If the selling price is $30 per toaster, what must be the annual unit sales to make the project worthwhile?

 

Question3. Abco is an all equity firm with 40,000 shares of stock outstanding at a market price of $50 a share. The company's earnings before interest and taxes are $300,000. Abco has decided to add leverage to its financial operations by issuing $500,000 of debt at a 10 percent rate of interest. The debt will be used to repurchase shares of stock. You own 800 shares of Abco stock. You could also loan out at a 10 percent rate of interest. How many shares of Abco stock must you sell to offset the leverage that Abco is assuming? Assume you loan out all of the funds you receive from the sale of stock and there is no tax.

Question4.Estimate the Beta of BMO and Air Canada.

a. Acquire monthly stock/asset returns on BMO (ticker: BMO.TO), Air Canada (ticker: AC.TO), and S&P/TSX Composite index (ticker: ^GSPTSE) over the period from January 2012 to December 2014. Each stock/asset should have 36 monthly stock returns. Report the table of dates and monthly returns on the three assets, and plot them in one figure (use dates as the x-axis and asset returns as the y-axis).

 

Finance

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

14 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com boasts qualified and experienced experts, who assist students to accomplish essays of all types within any given deadline. Our wide range of essay writing services ranges from proposal essay help, argumentative essay help, comparative essay help to literature essay help. Moreover, students from any background or pursuing any educational discipline can avail our services. Some of our popular services include nursing essay help, MBA essay help, English essay help, law essay help and much more.

More Finance: Questions & Answers

Q

Professional Skills

Create a Word document called 'Critical Thinking' and write approximately 400 words (no less than 350 and no more than 450 words) describing why you need to be a critical thinker. Explain why it is important for ICT professionals to be critical thinkers. Note that you should include your definition ...

View Answer
Q

Business Law

Question: 1. Using the 4 step process, consider whether the elements of intention and consideration have been satisfied in the above scenario. and 2. Using the 4 step process, also consider whether the element of agreement is satisfied in the above scenario. ...

View Answer
Q

journal

Reflective Journal 3 Australia ranks among the highest [is currently ranked at number 2 out of almost 190 countries] on the Human Development Index [HDI]. The HDI includes a measure of a country’s living standards [including income], life expectancy, levels of education and so on. Des ...

View Answer
Q

managment accounting in decision making

It's 900 words report on the role of a management accounting for deciaion making journal ". My assignmentdeadline ia friday and i need it by tomorrow please. I'm really worried about it because I'm doing an other assignment too. Can you please tell the price. Thanks ...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?