A firm needs to raise $950,000 but will incur flotation costs of 5%. How much will it pay in flotation costs? Multiple choice question. $50,000 $55,000 $55,500 $47,500
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A firm needs to raise $950,000 but will incur flotation costs of 5%. How much will it pay in flotation costs?
$50,000
$55,000
$55,500
$47,500
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- 4 PTSA company only has £2,000 to invest at time t0 in projects P, Q and R. Each project is infinitely divisible but cannot be undertaken more than once. Project Investment at t0 NPV P £700 £224 Q £1,000 £360 R £1,500 £510 How much should be invested in project R to maximise the NPV achieved? A £0 B £1,000 C £1,350 D £2,000An auto part company is deciding whether to sponsor a racing team for a cost of $1 million. The sponsorship would last for three years and is expected to increase cashflows by $570,000 per year. If the discount rate is 6.9%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? Group of answer choices A $498, 597 B 747,896 C $710,000 D $847,615
- An interior design studio is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow Cash Flow (0) -$64,000 31,000 31,000 31,000 a-1 If the required return is 10 percent, what is the profitability index for both projects? (Round your answers to 3 decimal places. (e.g., 32.161)) Project I Project II -$18,000 9,700 9,700 9,700 Profitability Index a-2 If the company applies the profitability index decision rule, which project should the firm accept? O Project I O Project II Project I Project II b-1 What is the NPV for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) O Project I Project II NPV b-2lf the company applies the NPV decision rule, which project should it take?Give me sell? (financial accounting)The Price Co. can make widgets for $5 and sell them for $8. If fixed costs are $100,000, then how many widgets must they sell in order to have an EBIT of $50,000? Question
- General Accounting solve pleaseThe Sugar Cookie Company needs to raise $200 million for a project. If external financing is used, the firm faces flotation costs of 6% for equity and 3% for debt. If the project is financed 60% with equity and 40% with debt, how much cash must the firm raise in order to finance the project? O A. O B. O C. O D. OE. $212.31 million $175.16 million $161.57 million $210.08 million $209.42 millionHow many sell?
- ???Please answer this question. Thank you!A firm is considering a project with an annual cash flow of $200,000. The project would have a 7-year life, and the company uses a discount rate of 10 percent. Ignoring income taxes, what is the maximum amount the company could invest in the project and have the project still be acceptable? a. $973,600 b. $718,200 c. $200,000 d. $1,400,000 Please donot give answer in image format and it should be in step by step format and provide fast solution
