QUESTION:WHICH OF THE FOLLOWING TRANSACTIONS WILLINCREASEACORPORATION'SRETURNS ON ASSETS?wwwwwOPERATINGA. SELL STOCK AND USE THE MONEY TO PAY OFFSOME LONG-TERM DEBT.B. SELL 10-YEAR BONDS AND USE THE MONEY TOPAY OFF CURRENT LIABILITIES.C. NEGOTIATE A NEW CONTRACT THAT LOWERSRAW MATERIAL COSTS BY 10%.D. INCREASE SALES BY 10%.wwwCHOOSE ONE OPTION AND EXPLAIN.

The transaction that will increase a corporation's operating returns on assets is:C. Negotiate a new…

Answered: QUESTION: WHICH OF THE FOLLOWING…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer is B Thanks
You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its future investments in new plant and working capital: Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% Investment Answer is complete but not entirely correct. 1 $ 74 24 a. Total value i b. Laputa's equity 50 15 18 326 652 € Year 2 $94 $ 189 34 60 18 21 39 70 21 24 From year 5 onward,EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 50% by equity and 50% by debt. Its cost of equity is 17%, its debt yields 8 %, and it pays corporate tax at 30%. 4 $ 114 44 a. Estimate the company's total value. Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the…
Question 3. A company has two mutually exclusive proposals competing with one another under consideration and provides you the following information : Proposal I Proposal II Net cash outlay (t = 0) 1,00,000 80,000 Net cash saving in operating costs before depreciation and taxes : Year 1 30,000 28,000 40,000 36,000 3 25,000 20,000 4 20,000 18,000 15,000 10,000 You are required to determine the incremental cash flows after tax assuming straight line method of depreciation, no salvage value and the firm's tax rate of 50%.
Question Alternative A: To buy Machine Audi which is similar to the existing machineAlternative B: Go in for Machine Benz which is more expensive and has much greater capacityThe cash flows at the present level of operations under the two alternatives are as follows:Year Machine Audi Machine Benz0 (30500) (32000)1 - 145002 9000 145003 19000. 145004 16000 145005 14000 14500The company estimates that its cost of capital is 11%. At the end of year 5, Machine Audi will have a scrap value of $2500 which is not included in the table above. Machine Benz will not have any residual value (d) Calculate the Profitability Index for Machine Audi. (e) Calculate the Internal Rate of Return for both machines (Use interpolation toarrive at your final answer.) (f) Write a brief report to the management to determine whether Albert Trading should buy any machine.
Please solve question 2 with excel function PV, thanks
23. Mohammed LLC interested to know the Average profit of the company. It asks you to calculate the Average Profit from the given details. The total cost is RO 40000, Sales RO 80000 and Original Investment is RO 30000. a. RO 40000 b. None of the options c. RO 90000 d. RO 120000
Q1. Revenues Advertisement Salaries Sale of scrape Year 1 100000 4000 20000 Year 2 150000 5000 30000 Year 3 140000 3000 30000 5000 Year 4 110000 30000 Year 5 150000 35000 2000 Initial Investment Rs.200000 required rate of return on investment is 12% Required: (i) NPV, (ii) IRR and (iii) Payback period, and (iv) Discounted Payback Period.
H2. Account
Please answer all as they are part of the same question
[Question text] If D-Mart Bhd recently replaced its management team which use a flexible financing policy. Due to this policy changes, the company should_ Select one: O A. buy their inventory with cash O B. finance all company's assets with long-term debt C. use short-term financing in the seasonal peaks D. finance only long-term assets with long-term debt
Nikul
Problem 2 ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.

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