Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 442 Weeks Ago, 1 Day Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 04 May 2017 My Price 3.00

Over-the-Top Canopies (OTC)

Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $150,000 and has an IRR equal to 12 percent, and Project L costs $140,000 and has an IRR equal to 10 percent. OTC’s capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are rdT = 4%, rs = 10%, and re = 12.5%. If OTC expects to generate $230,000 in retained earnings this year, which project(s) should be purchased?

Answers

Alpha Geek
(8)
Status NEW Posted 04 May 2017 11:05 AM My Price 3.00

-----------

Attachments

file 1493898161-Answer.docx preview (106 words )
O-----------ver------------th-----------e-T-----------op -----------Can-----------opi-----------es -----------(OT-----------C) -----------is -----------eva-----------lua-----------tin-----------g t-----------wo -----------ind-----------epe-----------nde-----------nt -----------inv-----------est-----------men-----------ts.----------- Pr-----------oje-----------ct -----------S c-----------ost-----------s $-----------150-----------,00-----------0 a-----------nd -----------has----------- an----------- IR-----------R e-----------qua-----------l t-----------o 1-----------2 p-----------erc-----------ent-----------, a-----------nd -----------Pro-----------jec-----------t L----------- co-----------sts----------- $1-----------40,-----------000----------- an-----------d h-----------as -----------an -----------IRR----------- eq-----------ual----------- to----------- 10----------- pe-----------rce-----------nt.----------- OT-----------Câ€-----------™s -----------cap-----------ita-----------l s-----------tru-----------ctu-----------re -----------con-----------sis-----------ts -----------of -----------20 -----------per-----------cen-----------t d-----------ebt----------- an-----------d 8-----------0 p-----------erc-----------ent----------- co-----------mmo-----------n e-----------qui-----------ty,----------- an-----------d i-----------ts -----------com-----------pon-----------ent----------- co-----------sts----------- of----------- ca-----------pit-----------al -----------are----------- rd-----------T -----------= 4-----------%, -----------rsÂ----------- = -----------10%-----------, a-----------nd -----------reÂ----------- = -----------12.-----------5%.----------- If----------- OT-----------C e-----------xpe-----------cts----------- to----------- ge-----------ner-----------ate----------- $2-----------30,-----------000----------- in----------- re-----------tai-----------ned----------- ea-----------rni-----------ngs----------- th-----------is -----------yea-----------r, -----------whi-----------ch
Not Rated(0)