Author Question: The percent of sales method can be used to forecast A) assets. B) liabilities. C) expenses. D) ... (Read 47 times)

ap345

  • Hero Member
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The percent of sales method can be used to forecast
 
  A) assets. B) liabilities. C) expenses. D) all of the abov

Question 2

CrochetCo is considering an investment in a project which would require an initial outlay of
  350,000 and produce expected cash flows in years 1-5 of 95,450 per year.
 
  You have determined
  that the current after-tax cost of the firm's capital (required rate of return) for each source of
  financing is as follows:
  Cost of Long-Term Debt 7
  Cost of Preferred Stock 11
  Cost of CommonStock 15
  Long-term debt currently makes up 25 of the capital structure, preferred stock 15, and common
  stock 60. What is the net present value of this project?
  A) 11,568 B) 2,149 C) -9,306 D) 5,983


GCabra

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Answer to Question 1

D

Answer to Question 2

C



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