QUESTION Discuss the future of the specialty shop if producers place greater emphasis on mass selling because of the inadequacy of retail order-taking. Enhancing Public Trust firms polices to resolve the issue. If the firm does not have a policy in place, the situation should be discussed with a supervisor or the next level of […]
QUESTION CDL Corporation produces motorcycle batteries. CDL turns out 1,500 batteries a day at a cost of $5 per battery for materials and labor. It takes the firm 24 days to convert raw materials into a battery. CDL allows its customers 40 days in which to pay for the batteries, and the firm generally pays […]
QUESTION Bradley CorporationCOST FOR JULY, 201X Units Sold 13,000Material $2 Price per Unit $16Labor $4 Beginning Inventory 3,000Overhead $2 Units Produced 12,000TOTAL $8 Cost July-Dec. $11Solution:Sales Value of Beginning inventory $24,000 (3,000 units@$8) Add Units Produced 96,000 ($2 material $4 labor $2 O/H= $8* 12,000) Inventory available for sale $120,000 Less: Units sold 104,000 (13,000 […]
QUESTION Rock Stone has:$13 million of sales$2 million of inventories$3 million of receivables$2 million of payablesIts cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations. Do not round intermediate steps. Rock Sales = $13,000,000, Inventory = […]
QUESTION 22) Consider four different stocks, all of which have a required return of 19% and a most recent dividend of $4.50 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10%, 0%, and -5% per year, respectively. Stock Z is a growth […]
QUESTION What are the merits and demerits of investment on the financial market via different types of mutual funds? Thanks Stock, shares or equity mean the same thing. Share refers to a little part in the ownership of a business/firm concern. Shares are classified into two, viz, the ordinary shares and the preference shares. Ordinary […]
QUESTION Consider a project to produce solar water heaters. It requires a $10 million investment and offers a levelafter-tax cash flow of $1.75 million per year for 10 years. The opportunity cost of capital is 12%, whichreflects the projects business risk.a) Suppose the project is financed with $5 million of debt and $5 million of […]
QUESTION Please help me figure out the answers for the missing portions. I have asked for help 3 other times and someone keeps putting the same figures and they are incorrect.A firm with a 13% WACC is evaluating two projects for this years capital budget. After-tax cash flows, including depreciation, are a Project A NPV […]
QUESTION Assume you have all your wealth (a million dollars) invested in the Vanguard 500 index fund andthat you expect to earn an annual return of 12%, with a standard deviation in returns of 25%. Youhave become more risk averse, and so you decide to shift $200,000 from the Vanguard 500 indexfund to Treasury bills. […]
QUESTION NPV profiles: scale differencesA company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.23 million per year for 20 years. Plan B requires a $13 million expenditure to bui 1) Calculating NPV: NPV A = -39M […]
