Archive - Month: February 2020

You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 11 percent, which is paid...

A project will increase sales by $640,000 and cash expenses by $370,001. The requiredequipment will cost $600,000 and belongs in a 25% CCA class. The company has amarginal tax rate of 35%. What is...

Consider a $1,000 par value bond with an 8% annual coupon that is currently selling for $1,050. The bond pays interest annually. There are 20 years remaining until maturity.a) What is the size of...

A 5 year project has an initial fixed investment of 335,000, an initial NWC investment of 35,000 and an annual OCF of -34,000. The fixed asset is fully depreciated over the life of the project and...

quad enterprises is considering a new 3 year expansion project that requires an initial fixed asset investment of 2.94M.The fixed asset will be depreciated (straight line) to zero over the 3 year...