MGFC10H3 Study Guide - Final Guide: University Of Toronto Scarborough, Tax Rate, Dividend Policy
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Due date: nov 30, 2010 by 3 pm. Markham technologies is (mt) is considering a project, which will require an initial investment of ,000,000. One year from today after tax operating cash flows will be ,600,000, after that they will decline at a rate of 4% per year for ever. What is the project"s npv now: independent of (b), assume that the project will be financed entirely with debt at an interest rate of 8%. Denison medical techies is a fast growing biomedical technology firm. It has 2 million shares of common stock outstanding: the cash flow available to be paid out in the form of cash dividends, to pay down debt, or to fund new capital investments, is ,000,000. It has the following set of investment opportunities available: Assume that the firm will take all wealth- maximizing projects and that it will not increase its debt/equity ratio.
