Given the following information, answer the following questions: TR = $3Q TC = $1500 + $2Q a. What is the break-even level of output? b. If the firm sells 1300 units, what are its earnings for losses? c. If sales rise to 2000 units, what are the firm’s earnings or losses? d. If the total cost equation were TC = $2000 + $1.80Q, what happens to the break-even level of output units? 2. Determine the current market prices of the following $1000 bonds if the comparable rate is 10% and the answer the following questions. XY 5.25% (interest paid annually) for 20 years AB 14% (interest paid annually) for 20 years a. Which bond has a current yield that exceeds the yield to maturity? b. Which obnd may you expect to be called? Why? c. If CD, Inc., has a bond with a 5.25% coupon and a maturity of 20 years but which was lower rated, what would be its price relative to the XY, Inc., bond? Explain.
Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firm’s cost of capital is 12%?
Need Help Writing an Essay?
Tell us about your assignment and we will find the best writer for your essay.
Write My Essay For Me
Investment
Cash inflow A B
Year 1 $12,407 —
Year 2 — —
Year 3 — —
Year 4 — $19,390
a. What is the net present value of each investment?
b. What is the internal rate of return of each investment?
c. Which investment(s) should the firm make?
d. Would your answer be different to c if the funds received in Year 1 for investment A could be reinvested at 16%? Show the work.
Welcome to our trusted essay writing website with track record among students. We specialize in connecting students in need of high-quality essay assistance with skilled writers who can deliver just that. Explore the ratings of our essay writers and choose the one that best aligns with your requirements. When you rely on our online essay writing service, rest assured that you will receive a top-notch, plagiarism-free A-level paper. Our experienced professionals write each paper from scratch, carefully following your instructions. Request a paper from us and experience 100% originality.