How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask F. Naz Your Own Question

F. Naz
F. Naz, Bachelor's Degree
Category: Business and Finance Homework
Satisfied Customers: 5256
Experience:  Have completed B.COM and CA Finalist
20040807
Type Your Business and Finance Homework Question Here...
F. Naz is online now
A new question is answered every 9 seconds

Use the company data set provided here to calculate the

Customer Question

Use the company data set provided here to calculate the appropriate weighted average cost of capital. Determine if the project described should be implemented based upon its cash flows and calculations of the IRR, NPV, MIRR, and payback period. Discuss various ways in which the company can mitigate against project risk.
Submit your answers in a 5- to 7-page Microsoft Word document and your calculations in a Microsoft Excel sheet.
Cite any sources using the APA format on a separate page.
Balance Sheet Week 1, 5, 6
MNQ Company
Balance Sheet ($000) 2008 2007 2006 2005 2004
Assets
Current Assets
Cash and cash equivalents $250 $225 $191 $160 $192
Accounts receivable $650 $585 $497 $425 $510
Inventories $300 $270 $230 $200 $240
Total Current Assets $1,200 $1,080 $918 $785 $942
Fixed Assets
Property, plant, and equipment $2,200 $1,870 $1,814 $1,422 $1,400
Less: Accumulated depreciation $400 $200 $180 $80 $75
Net property, plant, and equipment $1,800 $1,670 $1,634 $1,342 $1,325
Intangible assets $300 $240 $220 $210 $205
Total Fixed Assets $2,100 $1,910 $1,854 $1,552 $1,530
Total Assets $3,300 $2,990 $2,772 $2,337 $2,472
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $400 $340 $299 $245 $319
Notes payable $300 $255 $224 $184 $239
Accrued expenses $600 $510 $449 $368 $478
Total Current Liabilities $1,300 $1,105 $972 $797 $1,037
Long-Term Liabilities
Long-term debt $400 $380 $370 $350 $345
Deferred taxes $250 $230 $220 $210 $205
Total Long-Term Liabilities $650 $610 $590 $560 $550
Total Liabilities $1,950 $1,715 $1,562 $1,357 $1,587
Income Statement week 1,2,5,6
MNQ Company
Income statement ($000 - Except for per share information) 2008 2007 2006 2005 2004
Sales $1,200 $1,100 $880 $750 $875
Cost of goods sold $540 $550 $264 $360 $306
Selling, general, and administrative expenses $180 $200 $165 $210 $180
Depreciation $200 $20 $100 $5 $75
Operating income $280 $330 $351 $175 $314
Other income $40 $30 $20 $18 $30
Earnings before interest and taxes (EBIT) $320 $360 $371 $193 $344
Interest expense $28 $27 $26 $25 $24
Earnings before taxes (EBT) $292 $333 $345 $169 $320
Taxes (35%) $102 $117 $121 $59 $112
Net income $190 $217 $224 $110 $208
Addition to retained earnings $45 $55 $200 $85 $120
Dividends $145 $162 $24 $25 $88
Additional Information:
Shares outstanding 50 50 50 50 50
Book value per share 27 25.5 24.2 19.6 17.7
Market price per share 21 18.5 18 16 25
Earnings per share $3.80 $4.33 $4.49 $2.19 $4.15
Dividends per share $2.90 $3.23 $0.49 $0.49 $1.75
Cash Flow week 3
MNQ Company's New Project's Estimated Cash Flows
Time 0 -$35,000
Time 1 $500
Time 2 $1,500
Time 3 $3,500
Time 4 $6,000
Time 5 $10,000
Time 6 $14,000
Time 7 $24,000
Assumed Discount Rate = 10%
Beta Week 4
Beta (Year = 2008)
MNQ Company's common stock = 0.85
Stock #1 1.5
Stock #2 0.27
Stock #3 1.1
Stock #4 2.15
Stock #5 -0.5
Stock #6 0.7
Stock #7 1.4
Stock #8 1.2
Stock #9 0.65
Risk-Free Rate of Return = 5%
Market Risk Premium = 6%
Submitted: 1 year ago.
Category: Business and Finance Homework
Expert:  F. Naz replied 1 year ago.
I am sending you the offer, please accept it so the answer may be provided, please also mention your deadline thanks.
Customer: replied 1 year ago.
It is due tomorrow, but I will pay if you can make it less than $100
Expert:  F. Naz replied 1 year ago.

You can see that it is a long assignment, including working and writing of 5 to 7 pages, thanks.

Customer: replied 1 year ago.
Thank you for your offer, but I will have to decline.
Expert:  F. Naz replied 1 year ago.

Take care.

Related Business and Finance Homework Questions