Can you complete this Financial Management worksheet?
1) Jella Cosmetics is considering a project that costs 750;000 and is expected to last for 11 years and produce future cash flows of 160,000 per year. If the appropriate discount rate for the product is 20% what is the products IRR? (Round to 2 decimal points)
2) Header Motor Inc. paid a 3.57 dividend last year. At a constant growth rate of 7% what is the value of the common stockif the investors require a 15 percent rate of return?
3) Your firm is planning to issue preffered stock. The stock is expected to sell for 97.97 a share and will have a 100 par value on which the firm will pay a 14.9 percent dividend. What is the cost of capital to the firm for the preffered stock?
4) Curleys fried chicken operates two southern cooking places in St Louis MI and has the following financial structure
Accounts Payable 112,000
Short Term debt 392,000
Current Liabilities 504000
Long Term debt 2114000
Oenwer Equity 1535000
Total 4153000
The firm is considering an expansion that would involve rasing an additional 2.6 million.
What is the firms debt ratio?
What is the firms interest bearing debt?
If the firm want to have a debt ratio of 50% the firm needs to raise?
5) Dharma Supply has earnings before interest and taxes (EBIT) of 582,000 interest expenses of 268,000 and faces a corporate tax of 35%
What is the net income?
If there was not debt Dharmas net income would be?
The firms interest tax savings are?
6) Taken from a screenshot:
6- Cont. This is the data table that must be used in number 6.
7) Taken from screenshot answer a,b,c.
8) Screenshot
9- Screenshot
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