Finally, T-mobile and Sprint will come together in a merger and it makes the United states cell phone provider market look like this AT&T 40%, Verizon 29%, T-Mobile 16%, Sprint 13%. So what are the cost and benefits for T-mobile?
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Finally, T-mobile and Sprint will come together in a merger and it makes the United states cell phone provider market look like this AT&T 40%, Verizon 29%, T-Mobile 16%, Sprint 13%. So what are the cost and benefits for T-mobile?
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- Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix (30 Points): FIRM Y FIRM X TV LAPTOP TV 30, 30 60 , 35 LAPTOP 40,70 20, 20 Which firm benefits most from the cooperative outcome? How much would that firm need to offer the other?A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience (1) increasing exchange rates; (2) stable exchange rates; and (3) decreasing exchange rates. The business believes that the probability for increasing, stable and decreasing exchange rates are 0.6, 0.3, and 0.1, respectively. The following payoff table depicts the costs for each decision alternative under different states of nature. Table 3 Decision State of Nature Increasing exchange Stable exchange Decreasing rates (0.6) rates (0.3) exchange rates (0.1) Expand existing $800.000 $650,000 $550,000 facilities Acquire a competitor 500,000 300,000 200,000 Subcontract 250,000 250,000 250,000 production Using Table 3, Choose the right pair of best decision alternative and cost using expected value?[EXCEL] Payback: Refer to Problem 5. What are the payback periods for production systems 1 and 2? If the systems are mutually exclusive and the firm always chooses projects with the lowest payback period, in which system should the firm invest? please use excel. Problem 5 info: 5. [EXCEL] Net present value: Blanda Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive, and the cost of the new equipment and the resulting cash flows are shown in the accompanying table. If the firm uses a 9 percent discount rate for production system projects, in which system should the firm invest? Year System 1 System 2 0 −$15,000 −$45,000 1 15,000 32,000 2 15,000 32,000 3 15,000 32,000
- Suppose a company like Target Distribution Centers is looking at 3 mutually exclusive alternatives for locations to build their new Distribution Center.Scenario 1 is a DC in Akron. CAPEX Cost $18 million, project NPV $3.8 millionScenario 2 is a DC in Canton. CAPEX is $14.2 million, project NPV is $2.8 millionScenario 3 is a DC in Warren, CAPEX is $11.8 million, project NPV is $3.3 millionWhat would be your recommendation? Group of answer choices a. Scenario 2 b. Scenario 3 c. None of the above d. All of the above e. Scenario 14. In case of an M&A between firm A and firm B. If the value of firm A=50M, firm B=40M, the expected synergies S=45 and the integration/adaptation cost AC=15. a. The expected net value generated by the M&A= 45 b. The expected total value of the new firm created after the M&A= 120 c. The expected net value of the new firm created after the M&A= 90 d. None of the aboveAll the parts are under one questions and per your policy can be answered in full. 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Garida Co.: Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit sales 4,800 5,100 5,000 5,120 Sales price $22.33 $23.45 $23.85 $24.45 Variable cost per unit $9.45 $10.85 $11.95 $12.00 Fixed operating costs $32,500 $33,450 $34,950 $34,875 This project will require an investment of $20,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project’s four-year life. Garida pays a constant tax rate of 25%, and it has a weighted average cost of…
- All parts are under one question, per your policy all parts can be answered. 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Yeatman Co.: Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit sales 3,000 3,250 3,300 3,400 Sales price $17.25 $17.33 $17.45 $18.24 Variable cost per unit $8.88 $8.92 $9.03 $9.06 Fixed operating costs $12,500 $13,000 $13,220 $13,250 This project will require an investment of $15,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project’s four-year life. Yeatman pays a constant tax rate of 25%, and it has a weighted average cost of…Can you help me answer this with a step by step explanation and display any formulas used.? There is a firm, which we are prospecting as a purchase candidate. It has the following features we find attractive. First, it will enable us to sell to the clients of this firm what we already are selling our existing clients. The revenue addition will be $12 million. However, it will induce $3 million more expenses in attaining that higher level of revenue. Secondly, it will enable us to sell a division of the firm that does not rally connect with our operations for $5 million. Thirdly, since there is a lot of repetition of positions ( we are in the same line of business) we can lay off 50 employees permanently. The average salary of those employees is $60,000. The coc of the firm is 10%. Calculate the amount that we can bid to acquire this company.Kashmiri's Cost of Capital. Kashmiri is the largest and most successful specialty goods company based in Bangalore, India. It has not yet entered the North American marketplace, but is considering establishing both manufacturing and distribution facilities in the United States through a wholly owned subsidiary. It has approached two different investment banking advisors, Goldman Sachs and Bank of New York, for estimates of what its costs of capital would be several years into the future when it planned to list its American subsidiary on a U.S. stock exchange. Using the assumptions by the two different advisors in the popup window, E, calculate the prospective costs of debt, equity, and the WACC for Kashmiri (U.S.). What is the after-tax cost of debt estimated by Goldman Sachs for Kashmiri? 6.24% (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Assumptions Symbol Goldman Sachs Bank of New York 0.86 0.36 Estimate of…
- A company in country X with currency XSD is analyzing a potential investment in country Y with currency YSD. The best estimate is that YSD will be devalued in the international markets at an average of 3%. If the MARR of this company in country X is 23% what is the MARR that the company should use in country Y?A consumer product firm is considering making a major investment in China. The investment is expected to cost $5 billion, and the present value (PV) of the expected cash flows on the investment is only $3.5 billion. However, the firm believes that there are substantial expansion opportunities in China. Would that justify investing the $5 billion? Why or why not?Hi, please help me with the following questions Suppose the government buys up all of the farmers' output at the floor price and then sells the output to consumers at whatever price it can get. Under this scheme, what is the price at which the government will be able to sell off all of the output it had purchased from farmers? What is the revenue received from the government's sale? In this problem we have considered two government schemes: A price floor is established and the government purchases any excess output and The government buys all the farmers' output at the floor price and resells at whatever price it can get. Which scheme will taxpayers prefer?