0
Your company is considering a project that will cost $1 million.The project will generate after-tax cash flows of $250,000 per year for 7 years. The WACC is 15% and the firm's target D/E ratio is .6 The flotation cost for equity is 5% and the flotation cost for debt is 3%. What is the NPV for the project after adjusting for flotation costs?
fA = (E/V) x fE + (D/V) x fD
fA = (.375)(3%) + (.625)(5%) = 4.25%
PV of future cash flows = 1,040,105
NPV = 1,040,105 -1,000,000/(1-.0425) = -4,281
What else can I help you with?
What is the formulae for loss percentage?
% loss = amount of loss / cost x 100
What is formula of food cost calculation?
Cost of goods less inventory divided by Gross Food Sales
How do you solve problems involving discounts?
cost * (1 - discount % as a decimal)
What is mathmatic formula for food cost calculation?
Cost Of Food __________ Food Sales Cost of Food Divided by Food sales will give you a decimal amount which you can then convert to a percentage. example: $25,780 Cost of Food Divided by $64,575 Food Sales= .399225 or 39.9% then rounded to 40%
How is math used in US food service?
recipe formulation and calculation service determintion dealing with head counts, food portioning, food cost,menu planning and cost projections there of, inventory establishment,
how do you formulae use Calculation For Contact Form 7?
This plugin in you can be using any kind of calculators like weight calculation, hotel booking quote, car renting calculation, mortgage calculator, cost calculator, finance calculator, tax calculator, and many others. You can do your form in summation, multiplication, deduction, and division as well as many other formulae.
What is the formulae of cp if profit and discount percent is given?
if profit , discount % and cost price is given write the formulae to fine cost price
If the flotation cost goes up the cost of retained earnings will?
go up
If flotation cost go down the cost of new preferred stock will go up or down?
go down
What is the formulae for loss percentage?
% loss = amount of loss / cost x 100
What is the meaning of the calculation?
'Ganak'.
What is a Food cost percentage?
It is a calculation that determines the % of cost to sales.
Cost implications of management decisions involving distributions?
the cost implication of management decision involving distribution
When determining the after tax cost of a bond the face value of the issue must be adjusted to the net proceeds amounts by considering what?
the flotation cost
When calculation the inventory turnover at cost the first step is to calculate the?
Cost of goods sold
Application of mathimatics in petroleum engineering?
Production of petroleum , calculation of consumption and calculation of cost every thing was incomplete without mathematics.
How is the moving average cost calculation used in determining the cost of inventory?
The moving average cost calculation is used to determine the average cost of inventory by taking into account the cost of goods purchased over time. This method helps to smooth out fluctuations in costs and provides a more accurate representation of the overall cost of inventory.
