A)

Find the Payback period for the following project:

Project X Initial Outlay $8,960

Year I $3,030

Year 2 $3,800

Year 3 13,740

Year 4 $6,010

The answer should be calculated to two decimal places.

B)

Find  the net present value  for the following series of future cash flows, assuming the company’s cost of capital is 8.86 percent the initial outlay is $471,338

Year 1 : 176980

Year 2 : 152,444

Year 3 : 197,804

Year 4 :136,682

Year 5 : 168,913

C)
a project has initial outlay of $2593. It has a single cashflow at the end of year 10 of $5431. What is the IRR of the project?

D)

Find the profitability index for the following series of future cashflows assuming the company’s cost of capital is 8.33 percent the initial outlay is $467,184

Year 1: $160,540

Year 2: $132,403

Year 3 : $126,369

Year 4 : $ 175825

Year 5 : $196,059

E)

Black hill inc. sells $100 million worth of 24 year to maturity 13.75% annual coupon bonds. The net proceeds (after floatation cost ) are $ 974 for each $1000 bond. What is the before tax cost of capital for this debt financing?

F)

Calculate the cost of new common equity financing of stock Q using Gordon model

	Last year dividend	Growth rate of dividend	Selling price of stock	Floatation cost	Cost of common stock
Stock Q	$4.17	4%	$40.12	$4.43	?

 

G)

Given the following information on Big Brothers inc. capital structure, compute the company’s weighted average cost of capital (WACC) the company’s marginal tax rate is 40%

Type of capital	Percent of capital structure	Before tax component cost
Bond	56%	8.19%
Preferred stock	13%	13.77%
Common stock	Please calculate it	12.21%

In this assignment, you will analyze two jobs as your examples.
1.Analyze your current job, or a job with which you are familiar (for example, another job within your organization or perhaps the job of a family member or friend).
2.For the second part of the assignment, identify a job with the structure you did not use in your first example. For example, if the first job you identified has a job-based salary structure, then you will use the person-based salary structure for the second part of your assignment. You can use a job with which you are familiar, or conduct research about different jobs using sources like the Capella library.

Complete the following for each job:
•Identify the position using a descriptive job title.
•Define the pay structure.
•Explain a rationale about why this pay structure is appropriate for the position.
•Discuss the advantages and disadvantages of this type of pay structure.

Be sure to include citations for information obtained from at least two outside resources. Explain how each reference supports the advantages and disadvantages of the selected pay structure. Use a format similar to the example below:

Job Title: (For example, elementary school teacher.)

Pay Structure: (For example, person-based structure.)

Rationale: In this section, explain why you believe this is the appropriate structure for this type of job.

Advantages and Disadvantages: In this section, explain the advantages and disadvantages of the person-based structure from both the perspective of the employee and the organization.

Reference

Milkovich, G. T., Newman, J. M., & Gerhart, B. (2013). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin.

A major new client has requested that your company present an investment seminar to illustrate the stock valuation process. As a result, your boss has asked you to analyze an employment agency that supplies word processor operators and computer programmers to businesses with temporarily heavy workloads. You are to answer the following questions:

• What is the difference between common stock and preferred stock? What are some of the characteristics of each type of stock? In your opinion, which stock you rather buy.
• What is the difference between a publicly held company and a privately held company? How can the two types of companies be identified?
• What is classified stock? When “going public, why might a small company designate some stock currently outstanding as “founders’ shares”?
• APA references needed
• Intext Citation needed
• plagarism should be less than 30%
• Delivery length 1.5pages

XYZ IT company

Find the value per share of the company’scommon stock ( the company had paid out a total of $1,500,000 in dividends (the number of share outstanding is 1 million ). In the company require return on 25% and the constant growth rate of 20%.), the CFO ask you the following ?

1.What should the per share value of the company’s common stock be ? (dividends will continue to grow at a constant rate)
2. If the company will continue to grow at 20% for the next five years. After that, it is forecasted that growth rate will belower to 10%. This growth rate will then be sustained indefinitely. Based on this what is the company’s common stock value per share?
3. The CFO is satisfied with your research, but, he is worried as the technology being developed carries more risk. He wants to know if the current discount rate of 25% is suitable. What will you tell him?
4. The company has issued bonds as well for long-term financing reasons. Today the bond is selling at a discount of $95.91 ($100 par value) on the open bond market. The bond makes semi-annual coupon payments at a coupon rate of 6%, and will mature in 5 years. A friend does not understand why the bond is selling for less than its par value. How would you explain this to him? Support your explanation by including the equation for how the market price would be calculated. What is the current market rate expressed on an annual basis?
5. If the company were considering issuing a new bond today, explain what coupon rate the firm should theoretically offer. Assume the newly issued bond would have the same characteristics of the previously issued one.

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock.

Upon completing your Net Present Value (NPV) & Future Value (FV) Training Program, employees should be able to:

 

• Explain NPV and FV. 
• Describe the factors that are used in the NPV and the FV formulas. 
• Give an example of how to use the formulas for NPV and FV for a stock purchase. 
• Summarize the differences between the two formulas and the purpose of using each. 

Develop a PowerPoint presentation that is 10 slides long (excluding title and reference slides) and covers each of the above topics.  In the slide notes, include your explanations for each topic. MUST format the presentation according to APA style.