For the fiscal year ended in December 2020, the EP Enterpris…

For the fiscal year ended in December 2020, the EP Enterprises reported EBIT (Earnings Before Interest and Taxes) of $100 million. The company also reported a Net Income of $50 million. The company had a tax rate of 30%. What is the net operating profit after taxes (NOPAT)?

Boeing is evaluating a project to build a super-luxury comme…

Boeing is evaluating a project to build a super-luxury commercial jet dubbed SLJ. The project will last for 20 years. Boeing gets 50% of its sales from the commercial division and 50% from the defense division. The beta of Boeing stock is 1.5. Lockheed is 100% in defense, and the beta for the stock is 0.5, while Arbus is 100% commercial, and the beta of its stock is 2.0. Boeing will use a target capital structure of 40% debt and 60% equity for the SLJ project. Boeing has a 20-year 5% annual coupon bond with a par value of 1000 trading for 1000 dollars. The 20-year Treasury rate is 2%/Year. The risk premium on the market is 5%, and the tax rate is 30%. What is the WACC for the SLJ project?

You are in the process of obtaining a 5-year fixed-rate loan…

You are in the process of obtaining a 5-year fixed-rate loan to buy a car. The loan amount is $20,000, and the rate is 6% (This is the nominal annual rate.) Assume that all equal monthly payments are made at the end of every month. What percentage of the payment is the interest for the first month?