100% (1 rating)The increment within the VAT rate come about in an increment in VAT installments of 4.2% in 2018/19 and 5.8% in 2019/2020. All substances that make deals in South Africa in abunda…View the full answer

## Finance Assignment | Professional Writing homework essay help

A Company has debt of 40% and equity of 60%. The cost of debt is 8% and the cost of equity is 6%.

The risk-free rate is 2%, beta is 1.2 and the marginal tax rate is 40%. What is the Company’s cost of debt? What is the Company’s cost of equity? What is the WACC?

## Variables Assignment | Professional Writing homework essay help

The impact of VAT increase of SMMEs in South Africa

Kristen Lu purchased a used automobile for $20,650 at the beginning of last year and incurred the following operating costs Depreciation ($20,650 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $ 4,130 $ 2,200 $1,100 $ 57e $ 0.12 per nile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $4,130. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 20,000 miles last year.

Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per mile 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two Average fixed cost per mile Variable operating cost per mile Average cost per mile 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? Assume that there is no decrease in the resale value of the car due to its use. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Variable operating costs 2 Depreciation 2 Automobile tax ? License costs 2 Insurance costs

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## Bond Assignment | Professional Writing homework essay help

10 points) Your friend Michael is interested in learning more about bonds.

a. Explain to Michael the meaning of a bond, at least three types of bonds that are available, and the key features of a bond.

b. Explain to Michael the meaning of a zero coupon bond and what is meant by a premium and a discounted bond.

c. In general, how is the price of a bond calculated (not the market value)?

d. Assume a bond has a par value of $1000. What does that mean?

e. If a $1000 bond has an annual coupon of 6% and matures in 10 years, what should the price be? Assume similar bonds have a yield of 8%. Assume annual interest payments.

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## Bond Assignment | Professional Writing homework essay help

Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 5.4 percent paid semiannually and 24 years to maturity. The yield to maturity of the bond is 4.7 percent.

What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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## Dividends Assignment | Professional Writing homework essay help

When Google’s share price reached $745 per share, Google had an EPS of $26.5 and an

estimated market capitalization rate of 11.5%. Google pays no dividends. Approximately

how much is the PVGO in Google’s stock price?

A) 114.26

B) 214.26

C) 314.26

D) 414.26

E) 514.26

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## Investments Assignment | Professional Writing homework essay help

Two mutually exclusive investment opportunities require an initial investment of $7 million Investment A then generates $1.50 million per year in perpetuity, while investment B pays $1.00 million in the first year, with cash flows increasing by 3% per year after that.

At what cost of capital would an investor regard both opportunities as being equivalent? O A. 5% O B. 2% O c. 9% OD. 10%

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## Project Assignment | Professional Writing homework essay help

Which of the following can cause a project to have no Internal Rate of Return (IRR)?

(a) The project has a very small initial outlay;

(b) The project has negative cash flows in some years, but intermittent positive cash flows in other years;

(c) The project has large positive cash flow in the final year of its life.

(d) The project is completely independent of any other project.

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## Valuation Assignment | Professional Writing homework essay help

Put Option Valuation. Determine the value of a put option on the CAD that has the following characteristics: (a) it is of type European (b) it matures in 6 months (c) the strike price is USD 0.95. In the spot market the CAD is trading at USD 0.92. The US and Canadian interest rates are 4% and 6% respectively. The CAD has an annual standard deviation of 12%.

a) Write out fully the general form of the Black-Scholes formula for a European put.

b) Write the BS formula for the European put by plugging in for the specific parameter values of the European put given above.

c) Provide the value (price) for the European put given above.

d) Write down the expression for the put-call parity relationship.

e) Use the put-call parity relationship to find the price of the corresponding call option, that is, the call option with similar parameters. Write down the put-call parity condition by plugging in for the specific parameter values of the European option given above with the only unknown variable being the call option price.

f) Provide the value (price) for the European call option given by the put-call parity condition.

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## Investments Assignment | Professional Writing homework essay help

Two mutually exclusive investment opportunities require an initial investment of $8 million. Investment Athen generates $1.70 million per year in perpetuity, while investment B pays $1.30 million in the first year, with cash flows increasing by 5% per year after that.

At what cost of capital would an investor regard both opportunities as being equivalent? O A. 11% O B. 21% OC. 5% OD. 23%

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## IRR Assignment | Professional Writing homework essay help

What is the “decision rule” for the Internal Rate of Return (IRR)?

Accept a project when IRR > 0.

Accept a project if, at the IRR, NPV is positive.

Reject any project where IRR < 10%.

Accept a project if the IRR exceeds the firm’s borrowing rate of interest.

Accept a project if the IRR exceeds the firm’s cost of capital.

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