out1.List six such factors and discuss each factor not more than three linesThe determination of capital structure of a company is influenced by a number of factors.2.Assuming PepsiCola, Atlanta is considering of giving its main rival a strong competition, in thegroup to cover the project life cycle of eight years.launch of a product (two-in-one beverage) for a new market. The company requires an amount of$15,000,000.00 as the initial cost of plant/equipment for the products developed by its R&D researchFor each year, 500,000 units would be produced.5.The selling price of a unit of the new product is $8.50. It is expected that in year two (2), the selling priceof a unit will increase by 25%; year three (3) the unit will be selling by a further increase by 10% fromyear two (2) s selling price. From year four (4), the selling price will decrease by 5% from year three (3)sselling price and the subsequent years will stabilize or remain till the end of the project life and further.stndThe production department estimated cost of each unit for 1 year as $2.75, it will increase in 2 year byrdth25%; In the 3 year, will increase by 10% from the previous cost; In the 4" year, will decrease by 5%previous year's price till the end of the project life and further.from the previous cost price; and for the subsequent years, the cost of each unit will stabilize from theNote: The cost of capital is 12%.1. Selling, General and Administration costs for the first year is $340,000.00 and for the rest of theperiod, it will increase by 10% from each previous year cost.2. Fixed cost for each year is $60,000.003. Depreciation expense is $1,875,000.00 and remains same for the future years.4. Interest expense is $462,000.00 for year one, for year two $400,000.00, for year three $361,500.00,for year four $150,000.00, for year five $125,000.00 for year six $120,000.00 for year seven$112,000.00 and for year eight $75,000.005. Tax rate 38% throughout the entire period.Required to answer the following questions: calculate for each year:I. RevenueII. COGSIII. Gross Margin or profitIV. EBITV. TaxesVI. Net IncomeVII. Operating cash flowVIII. What method of deprecation did PepsiCola, Atlanta used in the proposal?3. How does the principal-agent problem affect the corporation?Explain by points4.The Rambo Internationals had, at the beginning of the fiscal year, November 1, 2017, retainedearnings of $425,000. During the year ended October 31, 2018, the company generated net income aftertaxes of $820,000 and paid out 35 percent of its net income as dividends.Construct a statement of retained earnings and compute the year-end balance of retained earnings.what the formulae for the theses ratios - Liquidity, profitability and Asset Management ratios

Note: As this this question have independent multiple questions. We have solved the first one for…

The determination of capital structure of a company is influenced by a number of factors. List six such factors and discuss each factor not more than three lines 1. 2. Assuming PepsiCola, Atlanta is considering of giving its main rival a strong competition, in the launch of a product (two-in-one beverage) for a new market. The company requires an amount of $15,000,000.00 as the initial cost of plant/equipment for the products developed by its R&D research group to cover the project life cycle of eight years. For each year, 500,000 units would be produced. The selling price of a unit of the new product is $8.50. It is expected that in year two (2), the selling price of a unit will increase by 25%; year three (3) the unit will be selling by a further increase by 10% from year two (2) s selling price. From year four (4), the selling price will decrease by 5% from year three (3)s selling price and the subsequent years will stabilize or remain till the end of the project life and further. The production department estimated cost of each unit for 1 year as $2.75, it will increase in 2nd 25%; In the 3rd year, will increase by 10% from the previous cost; In the 4th year, will decrease by 5% from the previous cost price; and for the subsequent years, the cost of each unit will stabilize from the previous year's price till the end of the project life and further. year by Note: The cost of capital

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q