1. sakonpure6

    Capital Recovery Factor

    I'm having trouble understanding the last bit of the solution to this problem: This is my professor's solution Using the capital recovery formula: $$ A = (P − S)(A | P, i, N) + Si $$ $$= (45 000 − 25 000)(A|P, 0.15, 5) + 25 000(0.5)$$ $$= 20 000(0.29832) + 12 500$$ $$= 18 466.40 $$ I...
  2. M

    Capital Pi notation

    Here is my question<br><br><img src=";stc=1" attachmentid="32147" alt="" id="vbattach_32147" class="previewthumb">
  3. T

    Optimal capital structure

    Company Y requires 10 million capital. The rate of interest on debt is 10% and the tax rate is 40%. What is the optimal percentage of debt, when the model stating the negative value of financial distress V = I*A*X^2 ( where I is the total amount of investment, A is a constant which in this case...
  4. S

    Marginal products of labor and capital

    Hey, has anybody an idea how to compute of marginal products of labor and capital from this excercise? [min{aK,bL}]^α (Thinking)(Thinking)(Thinking)
  5. G

    capital punishment and Statistics

    Can someone show me how to solve this? Also if someone know how to solve it with the ti 83/84, that would be great. If not, I'm fine as well. Two groups were polled about their attitudes towards capital punishment. In one group 30 out of 100 favored capital punishment, and in the other group...
  6. A

    Calculation of Working Capital in Capital Budget Analysis

    I know working capital is deducted at time zero and added back in the final time period when performing capital budget analysis. However, I was given a problem where the ending balance of current assets in a 6 year project is as follows: Time 0: $0 Year 1: $2000 Year 2: $2000 Year 3: $2000...
  7. M

    Changes in working capital for cash flow

    So I have this problem and don't understand why the solution is as stated below. The cash flow is as follows Period: 0 1 2 3 4 Sales: 0 200 150 120 180 WC 40 30 24 36...
  8. E

    Compound interest + New capital each year

    Hi, I'm not sure it this formula needs calculus, but I think so. So here is the problem. You want to invest some money. Let's say the first year you invest 1000$, and you will always reinvest the money you gained, plus every year you will add a new 1000$. You make an interest of 10% each year...
  9. J

    Raising Capital

    A company needs to raise $10 million to finance an investment. How many bonds would the firm need to sell (ignoring transaction costs)? Assume the company decides to issue 10-year maturity bonds with a 5% coupon rate, paying coupons semi-annually. The yield to maturity is currently 4%. My...
  10. D

    Capital Gain or Loss of selling a bond

    Pittston Company 7% coupon bonds pay interest semiannually. When you bought one of these bonds, it had 13 years to maturity, and the appropriate discount rate was 9% per year. After one year, the discount rate on such bonds is 8% per year because of the improved financial condition of the...
  11. D

    Simple profit + capital problem, need your help

    Hey guys, newbie here. My maths (as we call it in the UK) sucks and need help with this little problem. I am going to be trading mineral commodities soon at a low level and need an income projection over 20 weeks Here goes. Assuming i am buying a commodity and trading it as follows on a...
  12. M

    Shortcut calculation for tax savings on capital expenditure

    Hi Say, Machinery = $400,000 Useful life = 4 years Capital Allowance Rate = 25% Corporation Tax Rate = 35% Scrap Value = $5,000 Do you know any short cut that being used to calculate the total tax savings amount? I only know till certain steps. ie 40,000 x 0.25 x 0.35 x 0.75 x 0.75...
  13. A

    Annual Interest & Capital Equation

    I have been studying for a mathematics entrance test and the following problem came up on the practice exam: Capital K is deposited at an annual interest rate of 4%. Interest is compounded once a year. In fifteen years time the capital has grown to an amount of 108056.62 euro. Compute the...
  14. S

    Matlab problem. Showing capital I and PI in results.

    Hi everybody. I've been trying to solve some really huge matrix equations in matlab. But, every time, Matlab shows me, besides number and symbols, capital letter "I" or "PI" in a solution. I need those equations later in other function for ODE45 solver. Ofcourse, ODE doesn't recognise "I" or...
  15. Drexel28

    Capital script

    Hello everyone. I user Mathtype for my typesetting needs. Unfortunately the capital script letters are not included. I have been told I can download the font needed (mathrsfs) from the internet. I have searched and found a lot of downloadable packages (namely fromt but they all say I...
  16. P

    Capital investment - can you help me out please?

    I know how to calculate the payback period on this, but i dont know how to calculate the accounting rate of return and neither the net present value. 1. A company is considering two capital expenditure proposals. Both proposals are for similar products and both are expected to operate for four...
  17. S

    Calculating target capital and WACC

    Hey guys, I need some assistance with the following case. I need to work out what the firms cost of capital is based on the following changes. Obviously initially the target capital was 20 mil bonds / 2.5 mil preference shares / 5 mil ordinary shares, however what kind of calculations should I...