Turtle Co. has a total debt ratio of 0.78. The company is considering building a new plant for $75 million. When the company issues new equity, it incurs a flotation cost of 9%. The flotation cost on new debt is 4%. Calculate the cost of the plant, including flotation costs. (Round to 2 decimals and enter the full value,e.g. 5 million must be entered as 5,000,000)
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Turtle Co. has a total debt ratio of 0.78. The company is considering building a new plant for $75 million. When the company issues new equity, it incurs a flotation cost of 9%. The flotation cost on new debt is 4%. Calculate the cost of the plant, including flotation costs. (Round to 2 decimals and enter the full value,e.g. 5 million must be entered as 5,000,000)
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- XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. a. How much of the total cost is CAPEX and how much of the total cost is OPEX? b. How much cash must the company have to make the down payment? c. What is the monthly payment?The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 70% of sales, and depreciation is expected to be $1.8 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 35%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $ fill in the blank 2 Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What is Berndt's expected net cash flow? Round your answer to the nearest dollar. $ fill in the…Charlie Corp. is purchasing new equipment with a cash cost of $100,000 for the assembly line. The manufacturer has offered to accept $22,960 payments at the end of each of the next six years. What is the interest rate that Charlie Corp. will be paying? a. 8%. b. 9%. c. 10%. d. 11%.