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Ali Inc. expects to generate free-cash of $200000per year forever. If the firm's cost of capital is 0.15 percent,the firm cost of equity capital is 0.16 the market value of debt is $320000, the market value of preferred stock is $180000, and the company has 120000 shares of stock outstanding. What is the value of Ali's stock?what is the value of the firm

Answer for part 1


what is the value of the c.s?


From the national budget, budget the targeted GDP was 366,920,281,027.6 out of which the targeted Government

expenditure was 119,616,011,615. What is the expected coefficient

of public expenditures?


As for Ranchi, it has a population of 45L as per the last census taken in 2010. The year is 2020, and the company is looking to open a new footwear production factory. In Ranchi, Foot&Bros and Slipper&Sons are the current market leaders. Foot&Bros have been in business for 40+ years and have a 60% market share. In Ranchi, Slipper&Sons hold a 40% market share. Excess Industries expects to capture 25% of the former and 40% of the latter.
Factory lease (99 years) 99 Cr. Rent 1.5 L/month Electricity 10 units/footwear produced Electricity rate is 15 rupees per unit in Ranchi.
We will be sourcing our raw materials from two locations - nearby Kolkata (50%) and Patna (50%) . We understand that each shoe requires 10m of leather for manufacturing reasons.Wastage will be 10m per shoe.
Profit margin 20% - Analyze and estimate the profitability, revenues and costs of Excess industries from the beginning of 2021 until 2021 (first four years of business).
A peace of research equipment is expected to require an investment of 18000$ with 6000$ committed now and next year 7000$ while the remaining 6K$ will be paid out at the end of year 2. Annual operating costs for the system are expected to start in the first year and continue at 800$ per year. The life of the equipment is 8 years with a salvage value of 500$. Calculate the CR and AW. Values for the system, if the corporate MARR is 14.i ii% per year

Implications of GATT on indian education and financing


The capital structure of ABC Pvt. Ltd is as follows: Equity share capital (eachshareofRs.10) = Rs.16, 00,000Debentures with a coupon rate of 10% = Rs. 10, 00,000Reserves and surplus = Rs.15, 00,000Revenue from the business activities for the company is Rs. 2.00 crores. Its variable cost is 10% of the revenue, fixed operating cost is Rs. 60 lakhs and the company pays income tax at a rate of 25%. (10Marks)Calculate financial leverage, operating leverage and combined leverage for the company.

A manufacturing company forecast that it is likely to sell 8, 00,000 units for the year 2021. The processing cost of an order is Rs.200 and the carrying cost per unit of inventory is Rs.16. The lead time of an order is 5 days.(a) What would be the economic order quantity (EOQ) and re-order point assuming 360 days in a year? (5 Marks)(b) The company implements business process reengineering which results in to reduction of 25% in cost of an order, 15% in carrying cost per unit of inventory and 20% in lead time of an order. What would be the new EOQ and re-order point. 

You are given a choice of receiving $100 now or $200 in 10 years. What would the discount rate be for you to be indifferent between the two options?

The following question describes the conversion of cash flow into an equivalent equal payment series with N = 10

A = [800+200(A/G, 6%, 7)] (P/A, 6%, 10) + [300(F/A, 6%, 3) – 500] (A/F, 6%, 10)

Given the equation, reconstruct the original cash flow diagram and calculate the value of A


Suppose your retirement benefits during your first year of retirement are 50,000.00 Assume that this amount is just enough to meet your cost of living during the first year. However, your cost of living is expected to increase at an annual rate of 5% due to inflation. Suppose you do not expect to receive any cost of living adjustment in your retirement pension. Then, some of your future cost of living has to come from your savings other than retirement pension. If your saving account earns 7% interest a year, how much should you set aside in order to meet this future increase in cost of living over 25 years and how much should you save each year if you will retire after 10 years?


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