Homework answers / question archive / 1)Beastley Corp

1)Beastley Corp

Finance

Share With

1)Beastley Corp. founded by Martin and Allen Beastley brothers with registered capital $280,000. All the capital is formed and issued with $1000 par value common stocks. Allen gives his villa in exchange for one hundred stocks. Which of the following is true? *

The villa is valued at $140,000

Allen has 40 percent of Beastley Corp.

Allen has 50 percent of Beastley Corp.

The villa is valued at $100,000

2)A company is trying to determine whether to expand its business by building a new manufacturing plant. The initial cash outflow for the project will be $14,600. The required return is 11 percent. The new plant will generate cash inflows over four years. These cash inflows will be $3,900 for the first year, S5,000 for the second year. $6.400 for the third year, and $7,800 for the fourth year. What is the net present value? Enter your answer as dollars with 2 digits to the right of the decimal point in the box shown below.