Ansquiz5-7 - 24. AnswerGiven that Unleavered b 1.1 Debt 30%...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
21. Answer: Initial Inves 65000 Revenue 70000.00 Depritiation 21666.67 Operating Co 25000.00 Gross profit 45000.00 Less: Depricia 21666.67 Profit before t 23333.33 Less: Tax 8166.67 Net profit 15166.67 Add: Depritiat 21666.67 Net cash flow 36833.33 Cash flows 0 -65000.00 1 36833.33 2 36833.33 3 36833.33 NPV 26599.05
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 24. AnswerGiven that Unleavered b 1.1 Debt 30% Equity 70% Debt equity ra 0.43 Tax rate 40% Leavered beta 1.3829 25. AnswerCapital Budge $1,000,000 Debt $600,000 Equity $400,000 Net income $600,000 Residual inco $200,000 Dividend payo 33.33%...
View Full Document

This note was uploaded on 12/30/2010 for the course FIN 5405 taught by Professor Tapley during the Spring '08 term at University of Florida.

Ask a homework question - tutors are online