Picollo had after tax earnings of P5,000,000 in 2014. The company needs P5,000,000 for new investments and plans to finance 70% of those investments with debt. If Picollo follows a residual a dividend policy, what total dividend will be paid? *
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- Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following:a. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following: DO IT IN EXCELa. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.ABC Enterprise would like to evaluate/analyze a potential investment.. Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14%a. NPV for the perio 2023 through 2029;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
- A Corporation is planning to loan P20M at an effective interest rate of 10%. The company pays income tax at a rate of 30%. What is the cost of debt capital? a. P140,000 b. P200,000 c. P540,000 d. P600,000The Flatiron Group, a private equity firm headquartered in Boulder, Colorado, borrows £5,000,000 for one year at 7.375% interest (assume annual compounding). What is the dollar cost of this debt if the pound depreciates from $2.0625/£ to $1.9460/£ over the year? Please enter your answer as % -- e.g. if your answer is 2.34% type in 2.34.Rhodes Corporation’s financial statements are shown after part f. Suppose the federalplus- state tax corporate tax is 25%. Answer the following questions.a. What is the net operating profit after taxes (NOPAT) for 2020?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2020?e. What is the ROIC for 2020?f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.)
- A company has a $500 000 million loan with a 7% interest rate and a $300,000 loan with an 8% rate. The company’s tax rate is 20%. Find the average interest rate, and its pretax cost of debt. And find the after-tax cost of debt.A new company plans to obtain P18 million financing. The company expects to obtain a yearly income of P2 million before interest and taxes. The firm is considering issuing bonds or an equal amount of bonds and preferred stock. The interest rate on bonds is 14 percent. The tax rate is 46 percent. What financing strategy would you recommend?? (with forecasted income statement)Company X has debt and equity as source of funds..Company X has market value of debt as $ 150000 and a book value of debt as $ 80000. The company has book value of equity as $ 100000 and market value of equity as $ 125000. The cost of debt is 8.25% and cost of equity is 9.57%. The tax rate is 38%. What is WACC?
- ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount - 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.Suppose that LilyMac Photography expects EBIT to be approximately $94,000 per year for the foreseeable future, and that it has 400 10-year, 4 percent annual coupon bonds outstanding. (Use Table 11.1) What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac's WACC? Tax rate Mc. Type here to search 7730What is Ali Babba’s WACC if it has $15,905 with 9% after-tax cost of debt, $7,544 with 8% cost of preferred, and $11,463 with 13% cost of equity. Answer to two decimal places