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F. Naz
F. Naz, B.Com
Category: Multiple Problems
Satisfied Customers: 5254
Experience:  have completed B.Com and CA Finalist
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Use the company data set provided here to calculate the

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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: Multiple Problems
Expert:  F. Naz replied 1 year ago.

Please mention your deadline, thanks.

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