merger is $564.39 million per year; with $260 million per year for fixed cost and $304.39 million for variable costs and import duty fees. The European market will be provided with 20 million units per year by the European facility. The facility in North America will provide to the following market: 10 million units per year to the North American market‚ 3 million units per year to the non-European market in Europe‚ 2 million units per year to the market in Japan‚ 1 million units per year to the
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Gladstone may have one of four values next year: $150 million‚ $135 million‚ $95 million‚ and $80 million. These outcomes are all equally likely‚ and this risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the risk-free interest rate is 5% and assume perfect capital markets. a. What is the initial value of Gladstone’s equity without leverage? Now suppose Gladstone has zero-coupon debt with a $100 million face value due next year. b. What is the initial
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Trends and Opportunities in Qatar Non-Life Insurance Industry to 2017: Market Profile On 10th April 2014 Summary "Trends and Opportunities in Qatar Non-Life Insurance Industry to 2017: Market Profile" is the result of extensive research into the non-life insurance segment in Qatar. It provides insights into the market trends‚ market size‚ growth prospects and market efficiency in the Qatari non-life insurance market. Synopsis The report provides in-depth market analysis‚ information and insights
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---- Rosewood Industries has EBIT of $450 million‚ interest expense of $175 million‚ and a corporate tax rate of 35%. 2) Rosewood’s net income is closest to: A) $450 million B) $180 million C) $290 million D) $95 million Net income = (EBIT - Interest expense)(1 - τC) = (450 - 175)(1 - .35) = $178.75 3) The total of Rosewood’s net income and interest payments is closest to: A) $270 million B) $355 million C) $290 million D) $450 million Net income + Interest = (EBIT - Interest
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SEDF: Small: fixed capital investments > 100‚000 Tk (1‚750 USD) and < 100 m Tk (USD 1.75 million) Medium: fixed capital investments 100 to 300 million Tk (USD 1.75 million - 5.25 million) SEDF Target: Tk 10-300 million (USD 175‚000 - 5.25 million) in fixed capital investments. Proposed definition of the GoB Small Enterprise has less than 50 employees and / or less than 15 mTk in Fixed Capital Investment Medium Enterprise has 51-99 employees and / or Fixed Capital Investments between
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financing choice. |Financial Policy |Millions of dollars | |Current Assets |$30 Million | |Fixed Assets |$35 Million | |Expected Sales |$60 Million | |EBIT |$6 Million | |Tax Rate |40% | |S.E. used for financing of |$40 Million | |assets |
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Colgate-Palmolive reported net income of $1‚351.4 million. What amount of dividends‚ if any‚ did Colgate-Palmolive pay to its shareholders in 2005? a. b. c. d. $607.2 million No dividends paid $301.2 million $744.2 million 3. At the beginning of a recent year‚ The Walt Disney Company’s liabilities equaled $26‚197 million. During the year‚ assets increased by $400 million and year-end assets equaled $50‚388 million. Liabilities decreased $100 million during the year. What were beginning and ending
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costs $30 million. The project will generate after-tax (year-end) cash flows of $8 million for five years. The firm has a debt-to-equity ratio of 0.25. The cost of equity is 12 percent and the cost of debt is 7 percent. The corporate tax rate is 40 percent. It appears that the project has the same risk of the overall firm. Should Sydney undertake the project? 2. [10 points] Here is some data for three firms in the restaurant industry: Firm #1: $100 million in debt‚ $200 million in equity
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2009‚ showed current assets of $20 million‚ current liabilities of $16 million‚ shareholders’ equity of $17 million‚ and noncurrent assets of $29 million. Compute the amount of noncurrent liabilities on Allhear’s balance sheet at the end of 2009. a. $5 million b. $10 million c. $12 million d. $13 million e. $16 million ANS: E Current assets of $20 million + noncurrent assets of $29 million = total assets of $49 million=current liabilities of $16 million + noncurrent liabilities + shareholders’ equity of $17 million = $49 million
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1 Bonds (3 points) A company aims to takeover one of its suppliers valued at 2 million Euros and is planning to fund the takeover by issuing three-year zero coupon bonds‚ each with face value C1000. After having their credit rating checked‚ executives have decided that they need to issue 2400 of these bonds to raise the 2 million needed to fund this takeover. What is the YTM of the bonds issued by the company? (a) 5.79% (b) 7.13% (c) 6.27% (d) 5.34% If the company’s credit rating changes due to
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