- Question 16 12 5 Points Siegmeyer Corp Is Considering A New Inventory System Project A That Will Cost 800 000 The S 1 (11.82 KiB) Viewed 14 times
- Question 16 12 5 Points Siegmeyer Corp Is Considering A New Inventory System Project A That Will Cost 800 000 The S 2 (9.38 KiB) Viewed 14 times
- Question 16 12 5 Points Siegmeyer Corp Is Considering A New Inventory System Project A That Will Cost 800 000 The S 3 (11.88 KiB) Viewed 14 times
Shanos Inc. would like to finance an experimental cost-saving procedure by issuing new common stock. The corporation's existing common stock currently sells for $34.25. Management believes that they can issue new common stock at this price, incurring flotation costs of 6,15% of the current market price. What is the stock's net market price (net proceeds)? Submit your answer as a dollar amount and round your answer to two decimal places (Ex. $0.00)
Siegmeyer Corp. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Siegmeyer's required rate of return is 8%. Suppose Siegmeyer identifies another independent project with a net present value of $98,525.50. If neither project can be replaced, compared to the values calculated previously Siegmeyer should accept, Project A Project B Both projects Neither project