HW4 - 2 3 70000 40000 10000-30000 600000 700000 360000...

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Sales 100% Working Capital 10% Costs 60% Tax 35% Discount 13% 1) Year 0 1 Initial Investment 1200000 Working Capital 50000 60000 Chang In WC 50000 10000 Sales 500000 Costs 300000 Depreciation 300000 Pretax Profit -100000 Tax(.35) 0 Profit after taxes -100000 Cash Flow from operations 200000 Total Cash Flow -1250000 190000 NPV -$564,225.37
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3) Year 0 1 Initial -$10,000,000.00 Revenue $18,000,000.00 Fixed Cost $4,000,000.00 Variable Cost $12,000,000.00 Profit -$10,000,000.00 $2,000,000.00 Accounting Profit $0.00 NVP -$2,790,447.60 4) 100 40 4000 dividend 3 p1 44 percentage return 0.18 17.50% dividend yield 0.08 7.50% percentage capital gain 0.1 10% real rate of return 0.13 12.98% 5) 15 3 0.25 12 0.25 17 0.25 30 0.25 E = 3.33% SD = 4.56% Varience = 42.33% Standard Deviation 65.06%
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Unformatted text preview: 2 3 70000 40000 10000-30000 600000 700000 360000 420000 300000 300000-60000-20000-60000-20000 240000 280000 230000 310000 2 3 $18,000,000.00 $18,000,000.00 $4,000,000.00 $4,000,000.00 $12,000,000.00 $12,000,000.00 $2,000,000.00 $2,000,000.00 12000 13549-0.80-0.20-0.20-0.05 0.13 0.03 1.00 0.25 3.33% this is = 1.69/4 4-40000 400000 240000 300000-140000-140000 160000 200000 4 5 $18,000,000.00 $18,000,000.00 $4,000,000.00 $4,000,000.00 $12,000,000.00 $12,000,000.00 $2,000,000.00 $2,000,000.00 this is = to the percentage sd so I just took (-.8 - 3.33)^2 0.69 0.05 0.01 0.93 1.69 12000...
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This note was uploaded on 08/30/2010 for the course MGA 311 taught by Professor Jansima during the Spring '09 term at SUNY Buffalo.

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HW4 - 2 3 70000 40000 10000-30000 600000 700000 360000...

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