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

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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
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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%...
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