Please anwser one of the following. Undergraduate courses: 350 – 500 words or 1 – 2 pages. All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook. Be sure to refer to the course syllabus for more details on plagiarism and proper citation styles.1. J.B. Corporation is considering the purchase of equipment that has an invoice price of $450,000. The equipment was recommended by a consulting rm that did an analysis for J.B. Corporation. J.B. paid the consulting rm $12,000 for its report. The cost of shipping and installation is $50,000. The equipment will be depreciated on a straight-line basis over its useful life of 10 years, assuming no salvage value. The equipment will replace existing assets that have a current book value of $100,000 and which could be sold for $150,000. Additional net working capital of $15,000 will be required to maintain the equipment and to support higher sales. J.B.’s marginal tax rate is 40%. Calculate the initial outlay required to fund this project. or,2. Toto and Associates’ preferred stock is selling for $27.50 a share. The rm nets $25.60 after issuance costs. The stock pays an annual dividend of $3.00 per share. What is the cost of existing, and new, preferred stock respectively?please show all work in easy to read format.
Please anwser one of the following. Undergraduate courses: 350 – 500 words or 1 – 2 pages. All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook. Be sure to refer to the course syllabus for more details on plagiarism and proper citation styles.1. J.B. Corporation is considering the purchase of equipment that has an invoice price of $450,000. The equipment was recommended by a consulting rm that did an analysis for J.B. Corporation. J.B. paid the consulting rm $12,000 for its report. The cost of shipping and installation is $50,000. The equipment will be depreciated on a straight-line basis over its useful life of 10 years, assuming no salvage value. The equipment will replace existing assets that have a current book value of $100,000 and which could be sold for $150,000. Additional net working capital of $15,000 will be required to maintain the equipment and to support higher sales. J.B.’s marginal tax rate is 40%. Calculate the initial outlay required to fund this project. or,2. Toto and Associates’
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