McArnolds Finance Assingment Help With Solution

McArnolds Finance Assingment Help With Solution


TCBC, a regional cable TV provider, is considering expanding into the home security business. TCBC estimates that the cash inflows for the home security project will be $15M in year 1, $20M in year 2, and $25M in year 3. After year 3, the cashflows are expected to
increase by 4% per year for the foreseeable future.

TCBC has identified Alcatraz Systems, Inc. (ASI), a company that operates in a similar home security market. ASI’s beta is 1.25. ASI has a C bond rating, a cost of debt of 14%, and a marginal tax rate of 35%. The risk-free rate is 6% and the expected market return is 17%.

TCBC is currently financed with 35% debt and 65% equity. TCBC has a B bond rating, a before-tax cost of debt of 12.50%, an after-tax cost of debt of 8.75%, a beta of 0.87, and forward P/E ratio of 17.

If all of the cash investment required to enter into the home security project must be paid today, what is the maximum that TCBC would be willing to pay for this project?


How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.


We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.


Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.



100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


2. McArnolds stock is valued using the constant dividend growth model. The stock price today is $75 per share. Dividends are expected to grow by 5% every year. McArnold’s total asset turnover is 2.50, its retention ratio is 40%, its earnings per share (based on the trailing twelve months or the last year) is $3.00, and its average collection period is 28 days.

What is the required return for McArnolds stock?

3. Proctor and Gamble (P&G) is ready to introduce a new detergent. P&G expects the new product to have a 10-year life. Based on all information available as of this morning, it correctly estimated all relevant cashflows for the project. Using the appropriate required return of 11%, P&G estimates that the project’s NPV is $55 million.

We also know that P&G has a beta of 0.43, depreciates all fixed assets using straight-line depreciation (5-year life; no salvage value), has an inventory turnover of 8, a corporate tax rate of 25%, and expects to maintain a net profit margin of 13% throughout the foreseeable future.

Later in the afternoon, the operations manager reports that, due to capacity constraints brought on by the expected growth of sales for the new product, P&G will be required to make new capital expenditures (CAPX) of $100 million at the end of the fifth year of the project’s life. The entire $100 million CAPX will be made at the end of year five. This incremental CAPX was not included in the earlier NPV calculation. The new CAPX will not affect terminal cashflows.

Show whether the new CAPX requirement will affect the project’s desirability.



Product Code :Fin259

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.