Country Breads uses specialized ovens to bake its bread. One…

Country Breads uses specialized ovens to bake its bread. One oven costs $394,000 and lasts about 15 years before it needs to be replaced. The annual operating cash outflow per oven is $40,000. What is the equivalent annual cost, or EAC, of an oven if the required rate of return is 20 percent?

Challenging Falcism Research & Science is a rapidly growing…

Challenging Falcism Research & Science is a rapidly growing biomedical company. Due to a series of new government contracts, they will rapidly grow over the next two years and then mature into a stable company. The firm’s dividends are expected to match this pattern. Falcism just paid an $0. dividend per share today. The company pays its dividend annually. Due to the rapid growth, their annual dividend will double (i.e., grow by 100 percent) each of the next two years. After two years, the dividends will grow at a stable percent per year indefinitely. If biomedical companies such as Falcism should return percent per year, what is the price (or financial value) of one share of Falcism stock? (round your answer to the nearest $0.01)

Country Breads uses specialized ovens to bake its bread. One…

Country Breads uses specialized ovens to bake its bread. One oven costs $249,000 and lasts about 15 years before it needs to be replaced. The annual operating cash outflow per oven is $34,300. What is the equivalent annual cost, or EAC, of an oven if the required rate of return is 14 percent?

Power Manufacturing has equipment that it purchased 5 years…

Power Manufacturing has equipment that it purchased 5 years ago for $2,850,000. The equipment was used for a project that was intended to last for 7 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $460,000 today. The company’s tax rate is 40 percent. What is the aftertax salvage value of the equipment?