QUESTION Lancer Audio produces a high end DVD player that sells for $1,250. Total operating expenses for July were as follows:Month Units produced and sold CostAugust 125 $112,670September 145 121,990October 150 129,500November 160 131,500December 165 139,700January 140 117,400February 145 125,600March 135 1 a.Use the high-low method to estimate fixed and variable costs. Units Cost High […]
QUESTION Calculating WACCShadow corp. has no debt but can borrow at 6.5%. The firms WACC is currently 10.4% and the tax rate is 35%a) What is Shadows cost of equity?b) If the firm converts to 25% debt, what will its cost of equity be?c) If the firm converts to 50% debt, what will its cost […]
QUESTION After years of negative free cash flow, General Electric reported a positive free cash flow of $7,386 million in 2003. Look back at GEs cash flows displayed in Exhibit 4.2. Would you interpret the 2003 free cash flow as good news? After a string of negative free cash flow in the Fiscal Year of […]
QUESTION 2. Richmond Wins, Inc., had the following alphabetical list of accounts taken from its adjusted trial balance at December 31, 20B:Accounts Payable$10,000Accounts Receivable 14,000Accumulated Depreciation-Building 13,400Advertising Expense 6,400Buildin 2 Richmond Wines Income statement For the year of December 31, 20B. Sales Revenue: Sales 100000 Less: Cost of Goods Sold 52000 Gross Profit: 48000 Operating […]
QUESTION 1. Fay had a realized foreign exchange loss of $15,000 for the year ended December 31, 2011, and must also determine whether the following items will require year-end adjustment:Fay had an $8,000 equity adjustment resulting from the translation of the accounts of its wholly owned foreign subsidiary for the year ended December 31, 2011.Fay […]
QUESTION How much must you deposit in an account today so that you have a balance of $8,904 at the end of 13 years if interest on the account is 11% p.a., but with quarterly compounding?Please show the work how you got the answer, thanks Answer: You must deposit $ 2172.35 today to have $8904 […]
QUESTION The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpettos common stock currently sells for $23.00 per share; its last dividend was $2.00; and it will pay a $2.14 dividend at the end of the current year.a) Using the DCF approach, Dividend growth rate […]
QUESTION A firm has the following total revenue and total cost schedules: TR= $2Q, TC= $4,000 + $1.5Q. a.) What is the break-even level of output? What is the level of profits at sales of 9,000 units? b.) As the result of a major technological breakthrough, the toal cost schedule is changed to: TC= $6,000 […]
QUESTION In each of the following cases, find the unknown variable.1. Account Break Even= 112,800. Unit Price= $41. Unit Variable Cost= $30. Fixed Costs= $820,000. Depreciation= ?2.Account Break Even= 165,000. Unit Price=? Unit Variable Cost= $43. Fixed Costs=$3,200,000. Depreciation=$1,150,0003.Account Brea 1. Account Break Even= 112,800. Unit Price= $41. Unit Variable Cost= $30. Fixed Costs= $820,000. […]
QUESTION Based on the security market line, Company C-A stock has a required return of 7% and company C-B has a required return of 5%. C-A has a standard deviation of returns of 9%. ThereforeA) C-B must have a standard deviation of returns of less thn 9% because C-B is less risky than C-A.B) The […]
