1. Heidi owns 580 shares of Boyd Enterprises, which is priced at $64.74 per share. The company plans a 5-for-1 stock split. How many shares will Heidi own and what will the share price be after the stock split?
2. Air Taxi, Inc. is considering a new 3-year expansion project that requires an initial fixed asset investment of $1,400,000 million dollars. The asset will be depreciated over a 3 year tax life and have no salvage value. The project is estimated to have annual cash flows of $1,120,000 with a cost of $480,000. The tax rate is 35% and the required rate of return is 12% percent. What is the project NPV? Asset investment $1,400,000 Estimated annual sales $1,120,000 Costs $ 480,000 Tax rate 35% *Depreciation straight-line to zero over tax life 3 Required return 12%.