Monty Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $104,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $11,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 15,000 frames per year, generating a total contribution margin of $99,000. Martson Molders currently sells a molding machine that will allow Monty Pix to increase production and sales to 20,000 frames per year. The machine, which has a ten-year life, sells for $139,000 and would cost $13,000 per year to operate. Monty Pix’s current machine costs only $8,000 per year to operate. If Monty Pix purchases the new machine, the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $20,000 at the end of its ten-year life. Monty Pix uses straight-line depreciation. Click here to view the factor table. (a) Calculate the new machine’s net present value assuming a 16% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)
(a) Calculate the new machine’s net present value assuming a 16% discount rate.
Net present value $
(b) Use Excel or a similar spreadsheet application to calculate the new machine’s internal rate of return.
Internal rate of return %
(c) Calculate the new machine’s payback period.
Payback period = years

a. Mrs. Bard recognizes compensation income of $20,000 in 2024.b. Lyton Industries's 2024 tax deduction for the payment to Mrs. Bard is $13,600.

The effect of the payment on Lyton Industries's 2024 book income is no effect and the deferred tax asset decreases by $2,856.In this question, we have been given the following details:Mrs. Bard received a compensation package of $360,000, consisting of a $300,000 current salary and $60,000 deferred compensation.

This is because there is a temporary difference between the book income and the taxable income, due to the unfunded liability of $60,000. Therefore, Lyton Industries has recognized a deferred tax liability of[tex]$12,600 ($60,000 * 21%)[/tex] on its balance sheet for this temporary difference. However, when the first installment of $20,000 is paid to Mrs. Bard in 2024, this liability will decrease by[tex]$2,856 ($20,000 * 21% - $13,600).[/tex] Hence, the deferred tax asset will decrease by this amount. There is no effect on the book income.

To know more about Industries visit:

https://brainly.com/question/32605591

#SPJ11

Ollah's reorder point should be approximately 18 bags (rounded up to the nearest whole number) to maintain a 95% service level.

a. To calculate the economic order quantity (EOQ), we can use the formula:

EOQ = sqrt((2 * annual demand * fixed ordering cost) / per-bag holding cost)

Given:

Annual demand = 860 bags

Fixed ordering cost = $5 per order

Per-bag holding cost = $3 per year

Using the provided values in the formula, we get:

EOQ = sqrt((2 * 860 * 5) / 3)

= sqrt(2866.67)

≈ 53

Therefore, the economic order quantity for the bags is approximately 53 bags.

b. To determine the optimal order quantity, we need to compare the cost per unit for different order quantities. From the given information, we have:

Order 1-300 bags: Price = $7.25 per bag

Order 301 or more bags: Price = $5.00 per bag

Since the economic order quantity is approximately 53 bags, Ollah should order 53 bags at a time to take advantage of the lower cost per unit.

c. To calculate the reorder point, we need to consider the lead time demand and the desired service level. The lead time demand can be calculated as follows:

Lead time demand = average weekly demand * lead time

Given:

Average weekly demand = 12.8 bags

Lead time = 1.2 weeks

Lead time demand = 12.8 * 1.2

= 15.36

Next, we need to find the corresponding z-value for a 95% service level. From the table of z-values, a z-value of 1.65 corresponds to a 95% service level.

Reorder point = Lead time demand + (z-value * standard deviation of demand)

Given:

Standard deviation of demand = 1.5 bags

Z-value for a 95% service level = 1.65

Reorder point = 15.36 + (1.65 * 1.5)

≈ 17.61

Therefore, Ollah's reorder point should be approximately 18 bags (rounded up to the nearest whole number) to maintain a 95% service level.

To  learn more about economic order quantity (. visit-

https://brainly.com/question/26814787

#SPJ4

a. The operating cash flows for each year are -$17,500 (Year 0), -$17,500 (Year 1), -$17,500 (Year 2), -$17,500 (Year 3), and $8,750 (Year 5). b. The total cash flows for each year are -$52,500 (Year 0), -$52,500 (Year 1), -$52,500 (Year 2), -$52,500 (Year 3), and $8,750 (Year 5). c. The net present value (NPV) of the cash flow stream, assuming a discount rate of 12%, is negative, indicating that the grill should not be purchased.

The operating cash flows represent the savings in energy expenses each year, which are constant at -$17,500. The total cash flows include the operating cash flows as well as the salvage value of $8,750 received in Year 5. The NPV of the cash flow stream is calculated by discounting each cash flow at the discount rate of 12% and summing them up. If the NPV is positive, it would indicate that the investment is expected to generate a return higher than the discount rate, making it worthwhile. However, since the NPV is negative in this case, it suggests that the cost of the grill and the savings in energy expenses are not sufficient to justify the investment, and thus, the grill should not be purchased.

To know more about cash flow, here

https://brainly.com/question/27994727

#SPJ4

Cold Goose Metal Works Inc. has 50 million shares outstanding, the correct is: Statement 4: Cold Goose Metal Works Inc. has a negative net income of $3 million for the year.

The cash flow statement, also known as the statement of cash flows, is a financial statement that displays a company's cash inflows and outflows over a certain period of time. It shows how cash enters and leaves the business as well as what it is being used for.

Operating activities include transactions that involve the company's core business, such as sales and purchases of goods and services. Investing activities include transactions that involve the purchase and sale of long-term assets, such as property, plant, and equipment.

Financing activities include transactions that involve borrowing, lending, and other forms of financing.

Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars)

Given the information presented in the balance sheet above and the fact that

The calculation for net income is as follows:

Net Income = Revenue – Cost of Goods Sold – Operating Expenses – Depreciation – Interest

Net Income = $120 – $95 – $30 – $12 – $6

Net Income = -$3 million

This means that Cold Goose Metal Works Inc. made a loss of $3 million during the year, which can be confirmed by the company's negative retained earnings balance.

Cold Goose Metal Works Inc. had a deficit of $15 million in retained earnings at the beginning of the year and ended the year with a deficit of $18 million in retained earnings.

Know more about the cash flow statement,

https://brainly.com/question/24179665

#SPJ11

Over the last century, men and women's social roles have shifted considerably, particularly in the developed world. The rise of educational opportunities for women and the change in social attitudes have contributed significantly to these shifts, with women's traditional roles as caregivers and homemakers evolving into full-fledged participants in the workforce and society at large.

As a result, social policies have to adapt to these changing roles to support both the positive and negative aspects. Here are a few of the changing roles of men and women:1. Educational attainment The level of education is the most significant aspect of these changing roles.

Women's educational opportunities have increased significantly in recent years, allowing them to pursue and achieve academic success at the same level as men. This increase in education has resulted in more women participating in the workforce and taking on leadership positions. 2. Employment and Career as more women enter the workforce, their employment opportunities have expanded, and they have been able to break free from the traditional roles of homemakers. This has increased gender equality and has also contributed to the growth of economies.

Learn more about Social roles

https://brainly.com/question/30710682

#SPJ11

Higher education levels have led to shifting roles of men and women, with women and minorities becoming more prominent in job sectors historically occupied by men. This shift can be managed positively with use of policies such as anti-discrimination laws, making education more gender equal, and encouraging higher education amongst men.

Over time, the roles of men and women have evolved significantly, mostly influenced by rising levels of education. In recent times, men have been enrolling in college at a lower rate than women, leading to a rise in education-dependent jobs being filled by women, minorities, and immigrants. This shift has opened up avenues to alleviate negative aspects such as gender and racial discrimination in the workplace, and has supported positive aspects such as economic growth.

However, these changing roles come with worries of potential social tensions between men and women and among different ethnic groups. This calls for effective social policies. Anti-discrimination policies can be put in place to lessen social tensions and ensure that everyone has a fair opportunity to fulfill their potential. In addition, policies supporting flexible work hours and programs encouraging men to take up higher education can also help.

The role of education in these changes goes far beyond mere job placements. Education is a key socializing agent, shaping gender roles and societal expectations. Therefore, it is essential to emphasize gender equality and anti-discriminatory efficiency within the education system itself to promote these aspects in the broader society.

https://brainly.com/question/8873967

#SPJ2

The given statement "The accountant must make adjusting journal entries for all items in the book section of the bank reconciliation" is False. The accountant must not make adjusting journal entries for all items in the book section of the bank reconciliation.

What is the book section of the bank reconciliation?

The book section of the bank reconciliation lists the transactions that are recorded in the company's books but are not yet recorded by the bank. Such transactions are checked and matched with the bank statement. This helps in identifying the transactions that are omitted or not yet recorded by the bank.

The book section of the bank reconciliation consists of the following items:

Outstanding deposits Outstanding checks Bank errors Service charges Interest earned Adjusting entries that appear on the bank statement do not require any action from the accountant, as they are already recorded by the bank. However, if any adjusting entry appears on the book section of the bank reconciliation, then the accountant needs to make appropriate adjusting entries in the company's books.

Adjusting entries are made for the following items:

Outstanding deposits and checks that are not cleared by the bank Bank errors Service charges and interest earned on the bank balance that is not recorded in the company's books.

To know more about accountant visit :

https://brainly.com/question/30977839

#SPJ11

The statement "Decreasing a resource's utilization will increase both the cost per customer and customer satisfaction" is false. When resources utilization decreases, it leads to a decrease in the cost per customer, while customer satisfaction may remain the same or increase.

Therefore, the decrease in resource utilization does not affect customer satisfaction in any way. In general, the cost per customer is calculated as the cost of the resources utilized divided by the total number of customers served. For example, if a manufacturing company produces 1,000 units of a product with 100 labor hours, the cost of labor per unit is 100/1,000 = 0.1 labor hours per unit. If the company reduces labor hours to 50, the cost of labor per unit becomes 50/1,000 = 0.05 labor hours per unit. Therefore, by decreasing labor hours, the company reduces the cost per unit. By extension, the cost per customer is also reduced when the cost per unit decreases. On the other hand, customer satisfaction may depend on various factors such as quality, service, delivery time, and price. Decreasing resource utilization can potentially affect some of these factors, such as delivery time.

In conclusion, the statement that decreasing a resource's utilization will increase both the cost per customer and customer satisfaction is false. Decreasing resource utilization reduces the cost per customer, while customer satisfaction may remain the same or increase.

To know more about visit:

https://brainly.com/question/14289367

#SPJ11

A. Mark contributes $8,400 to his 401(k) (7% of $120,000).

B. The company contributes $6,000 to his 401(k) (50% of 10% of $120,000).

C. Mark would save $2,352 in taxes in the year of the contribution. To calculate this, we first determine Mark's tax savings on his contribution by multiplying his contribution by his marginal tax rate: $8,400 * 25% = $2,100. Then we calculate his tax savings on the employer match by multiplying the employer match amount by his average tax rate: $6,000 * 14% = $840. Adding these two amounts together, Mark would save $2,100 + $840 = $2,940 in taxes.

However, since his contribution is made with pre-tax dollars, the amount of taxable income is reduced by the contribution amount. The tax savings is equal to the contribution amount multiplied by the average tax rate: $8,400 * 14% = $1,176. Therefore, Mark's net tax savings would be $2,940 - $1,176 = $2,352.

To learn more about contributes refer here:

https://brainly.com/question/32608937

#SPJ11

The most likely effect of increasing the dividend payout ratio by 2% on the company's price-to-earnings (P/E) ratio would be: C. P/E ratio will decrease.

The P/E ratio is calculated by dividing the market price per share by the earnings per share (EPS).

Increasing the dividend payout ratio means that a larger portion of the earnings is being distributed to shareholders as dividends, resulting in a lower retained earnings. This reduction in retained earnings can lower the equity value of the company and consequently decrease the earnings per share (EPS). As a result, the P/E ratio, which is the ratio of the market price to the earnings per share, would likely decrease.

To know more about Net Income   here

https://brainly.com/question/28390284

#SPJ11

a. To prepare a common-size analysis for YOONG ONN CORPORATION BERHAD (YOC) for the years 2021 and 2020, based on the Statements of Profit or Loss and Other Comprehensive Income, we will use revenue as the base. The common-size analysis is a tool used to compare different items on a financial statement to a common base.

b. In part (a), we will be able to identify significant trends that appeared in the common-size analysis. This analysis will help us understand the relative proportions of various items in the financial statements and identify any changes over time.

c. To compute the net trade cycle for YOC for the years 2021 and 2020, we will need to calculate the average collection period and the average payment period. The net trade cycle measures the time it takes for a company to convert its trade receivables into cash, minus the time it takes to pay its trade payables. By analyzing the net trade cycle, we can assess the efficiency of the company's working capital management.

Learn more about common-size analysis:

brainly.com/question/24085898

#SPJ11

If Grandma leaves her wealth to her sons per stirpes, and if either son passes away before her, their children will receive a portion of their father's share.

Per Stirpes is a Latin term that means "by roots or stocks." This method of estate distribution is used to distribute an estate equally among the descendants of a person who has died. Each branch of the family is considered a "branch," and each branch will receive an equal share of the estate.

The shares are then divided among the heirs of the branch who have survived. In the event that an heir predeceases the testator, his or her share is divided equally among his or her descendants.

Per capita is a Latin phrase that means "by the head." This method of distributing an estate entails dividing the estate equally among each of the descendants. This is accomplished regardless of whether they are part of the same family branch or generation.

The number of living beneficiaries in each generation is considered equal to the number of shares distributed. In the event that a descendant dies before the testator, the deceased's share is not divided equally among his or her descendants. The descendants of the deceased are not entitled to any part of the estate's distribution.

If she leaves her bounty to her sons per capita, then her grandchildren will not receive a share of the estate if their parent dies before Grandma.

Know more about the per stirpes

https://brainly.com/question/32868579

#SPJ11

The board of trustees likely violated ERISA through their self-dealing loans from the pension assets. They may be held personally liable for the losses suffered by the plan.

The board of trustees of United Pension Plan likely violated the Employee Retirement Income Security Act (ERISA) through their actions. ERISA imposes fiduciary duties on pension plan trustees, including the duty to act prudently and solely in the interest of plan participants.

The board's decision to make loans to themselves without considering repayment ability, repayment period, or collateral provision raises concerns about prudence and loyalty to the plan participants.

By charging themselves interest rates lower than the market rate, the trustees may have also breached their fiduciary duty to act solely in the interest of the plan participants. This action could be seen as self-dealing and a misuse of plan assets.

As a result of the board's actions, the plan suffered substantial losses, indicating a failure to fulfill their fiduciary duties. The board members may be personally liable for these losses and could be required to restore any losses caused by their actions to the plan.

Learn more About ERISA from the given link

https://brainly.com/question/29994815

#SPJ11

a. Journal Entry to record Accrued Salaries as of August 31:

Date: August 31

Account Debit: Salary Expense (2,760)

Account Credit: Salaries Payable (2,760)

Description: Accrued salaries for the period.

b. Journal Entry to record the effect of closing Salary Expense as of August 31:

Date: August 31

Account Debit: Salary Expense (315,060)

Account Credit: Income Summary (315,060)

Description: Closing the Salary Expense account to the Income Summary account.

a. To record the accrued salaries as of August 31, we debit the Salary Expense account for the amount owed but not paid ($2,760) and credit the Salaries Payable account for the same amount. This entry recognizes the expense for the period and creates a liability for the unpaid salaries.

b. To close the Salary Expense account as of August 31, we debit the Salary Expense account for the balance it carries ($315,060) and credit the Income Summary account for the same amount. This entry transfers the expense to the Income Summary account as part of the closing process.

The journal entries accurately capture the accrual of salaries as of August 31 and the closing of the Salary Expense account for the period. The first entry recognizes the unpaid salaries as an expense and a liability, ensuring accurate financial reporting. The second entry closes the Salary Expense account by transferring its balance to the Income Summary account, allowing for the calculation of the net income or loss for the period. These entries adhere to the accrual accounting principle, which recognizes expenses and liabilities when incurred, regardless of the payment timing, and ensures proper closing of temporary accounts at the end of the accounting period.

To know more about Journal Entry ,visit:

https://brainly.com/question/28390337

#SPJ11

A. To draw a fully labeled Production Possibility Curve graph for Boulderstan's possible production, you would need to use the two goods, granola, and tofu, as the graph's axes. The x-axis represents the quantity of granola produced, and the y-axis represents the quantity of tofu produced. Start by plotting points on the chart corresponding to different combinations of granola and tofu that Boulderstan can pay. Connect these points to form a curve representing the production possibilities for Boulderstan. Label the curve as the Production Possibility Curve.

B. To show how Boulderstan could move from producing an equal amount of granola and tofu to producing more granola, you would need to shift the production point along the Production Possibility Curve toward granola. This can happen if Boulderstan reallocates some of its resources from producing tofu to producing granola while maintaining peak efficiency. Plot the new production point on the graph, reflecting the increase in granola production. C. To show how increased education would affect Boulderstan's production in the long run, you would need to shift the entire Production Possibility Curve outward. This is because increased education can improve technology, skills, and productivity, allowing Boulderstan to produce more granola and tofu with the same resources. Plot the new Production Possibility Curve on the graph, showing the increased production possibilities for Boulderstan. D. To determine which country should specialize in granola and which in tofu, compare the opportunity costs of producing these goods in Boulderstan and Denverstan. The country with a lower opportunity cost for a particular good should specialize in that good. The opportunity cost of producing one unit of granola is the amount of tofu that could have been produced instead, and vice versa. Compare the opportunity costs of granola and tofu production in both countries and identify the country with the lower opportunity cost for each good. That country should specialize in the good with the lower opportunity cost. E. The terms of trade for a unit of granola can be determined by comparing the opportunity costs of granola and tofu production in Boulderstan and Denverstan. The terms of trade represent the rate at which the two countries can exchange one good for another. In this case, the terms of trade for a unit of granola can be determined by comparing the opportunity cost of producing granola in Boulderstan to the opportunity cost of producing tofu in Denverstan. The exact terms of trade would depend on the specific opportunity costs in each country, which need to be provided in the question.

Learn more about Production Possibility Curve here: https://brainly.com/question/14183466.

#SPJ11

While her decision may not strictly adhere to utility maximization, it remains consistent with the overall framework of utility theory.

According to the principle of utility maximization, individuals choose the option that provides them with the highest level of satisfaction or utility. In the case of Ms. Frangipani, her choice of drinks is influenced by the weather. Specifically, she prefers Pepsi on rainy days and Coke on sunny days.

When faced with three options (Pepsi, Coke, and Lipton iced tea) on a sunny day, Ms. Frangipani chose Pepsi. The presence of iced teas in the choices should not affect her decision because she already knows her preference and what brings her enjoyment.

However, Ms. Frangipani violates the principle of utility maximization by choosing Pepsi over Coke on a sunny day. According to utility maximization, she should select the option that provides her with the maximum satisfaction or utility. If she indeed prefers Coke on sunny days, she should choose Coke over Pepsi, even if she generally likes Pepsi more.

Nevertheless, despite violating the principle of utility maximization, Ms. Frangipani's choices are consistent with the utility theory. She is still maximizing her satisfaction or utility based on her established preferences. Her choices align with her subjective preferences, which may be influenced by factors such as personal taste or associations with certain drinks on specific weather days.

Therefore, while her decision may not strictly adhere to utility maximization, it remains consistent with the overall framework of utility theory.

Learn more about utility maximization

https://brainly.com/question/32296953

#SPJ11

The Taxable Income for Fannie Corporation for the current tax year is $66,750.

The given data can be tabulated as follows: Particulars Amount ($)Net income per books 608,750 Add: Excess capital losses 9,000 Add: Excess tax depreciation 21,000 Add: Prepaid rent (unearned revenue) received and properly taxed in prior tax year but not earned for financial accounting purposes until current tax year 70,000 Subtract: Premiums on life insurance policy on its key employees(14,000)

Expenses related to tax-exempt interest income (7,500) Subtract: Rental income received in current tax year (80,000)Subtract: Life insurance proceeds on life of its key employees(450,000)Add: Tax-exempt interest income on municipal bonds 19,500 Taxable Income 66,750

To know more about Taxable income visit-

https://brainly.com/question/33053500

#SPJ11

Based on the given information and using the dividend discount model, the current stock price for Mack Industries is calculated to be $210.27.

The current stock price of Mack Industries can be calculated using the dividend discount model (DDM). The DDM values a stock based on the present value of its expected future dividends. In this case, we have information about the dividends for the next three years and a constant growth rate thereafter.

To calculate the current stock price, we can use the following formula:

P0 = D0 × (1 + g1) / (r - g1) + D1 × (1 + g2) / (r - g2) + D2 × (1 + g3) / (r - g3)

Where:

P0 = Current stock price

D0 = Dividend just paid

g1, g2, g3 = Dividend growth rates for the corresponding years

r = Required rate of return

Let's plug in the given values:

P0 = $3 × (1 + 0.07) / (0.11 - 0.07) + $3.21 × (1 + 0.06) / (0.11 - 0.06) + $3.21 × (1 + 0.06) / (0.11 - 0.06)

Simplifying the equation:

P0 = $3 × 1.07 / 0.04 + $3.21 × 1.06 / 0.05 + $3.21 × 1.06 / 0.05

P0 = $75.75 + $67.26 + $67.26

P0 = $210.27

Therefore, the company's current stock price should be $210.27.

Based on the given information and using the dividend discount model, the current stock price for Mack Industries is calculated to be $210.27. This value takes into account the dividends expected over the next three years and the constant growth rate beyond that period, as well as the required rate of return of 11 percent.

To know more about Stock Price, visit

https://brainly.com/question/28539863

#SPJ11

To calculate the asset's return percentage, we can use the formula:

Return percentage = ((Selling price - Purchase price) / Purchase price) * 100

Given:

Purchase price = $1800

Selling price = $1950

Return percentage = (($1950 - $1800) / $1800) * 100

                = ($150 / $1800) * 100

                = 0.0833 * 100

                = 8.33%

Therefore, the asset's return is 8.33%.

2.

If the purchase price of the discount bond rises, the bond's return will rise.

When a bond is purchased at a discount, it means the purchase price is lower than the face value. The return on a bond is calculated as the difference between the face value and the purchase price, divided by the purchase price.

If the purchase price of the bond rises, it means the bond is being sold at a higher price than before. As a result, the difference between the face value and the purchase price increases, leading to a higher return percentage.

When the purchase price of a discount bond rises, the bond's return will also rise. This is because the bond is being sold at a higher price, resulting in a larger return when compared to the initial purchase price.

To know more about asset's, visit;

https://brainly.com/question/11556132

#SPJ11

EVs are more cost-effective if their cost per mile is lower than that of gasoline-powered vehicles, which can be determined by comparing the respective costs of electricity and gasoline.

To compare the total cost per mile driven for an electric vehicle (EV) versus a gasoline-powered vehicle, the following steps should be taken: 1. Determine the cost per kilowatt-hour (kWh) of electricity used by the EV.

2. Determine the vehicle's miles per kilowatt-hour rating. 3. Calculate the cost per mile for the EV by multiplying the cost per kWh by the number of kWh required to travel one mile. 4. Determine the cost per gallon of gasoline. 5. Determine the vehicle's miles per gallon (mpg) rating.

6. Calculate the cost per mile for the gasoline-powered vehicle by multiplying the cost per gallon by the number of gallons required to travel one mile.7. Compare the cost per mile for the EV and gasoline-powered vehicle. The EV is more cost-effective if its cost per mile is lower than that of the gasoline-powered vehicle.

To learn more about electric vehicles

https://brainly.com/question/29522053

#SPJ11

GameStop Corp.'s financial statements reflect the appropriate balances and expenses for the reporting period ending on December 31, 2024.

Based on the provided information, the necessary adjusting entries for GameStop Corp. as of December 31, 2024, are as follows: Depreciation Expense: No journal entry required for the office equipment purchased in 2022 since it is being depreciated over its useful life. Accrued Salaries: Salaries Expense 4,350; Salaries Payable 4,350. To record the accrued salaries at year-end. Interest Expense: Interest Expense X; Interest Payable X. To record the accrued interest expense for the period from September 1, 2024, to December 31, 2024, based on the borrowed amount, interest rate, and time period. Supplies Expense: Supplies Expense X; Supplies X.

To adjust the supplies on hand at year-end to reflect their actual cost. Rent Expense: Rent Expense 14,100; Prepaid Rent 14,100. To recognize the expiration of prepaid rent during the period. These adjusting entries ensure that GameStop Corp.'s financial statements reflect the appropriate balances and expenses for the reporting period ending on December 31, 2024.

To learn more about financial statement click here: brainly.com/question/14951563

#SPJ11

a. The enterprise value of Trux is $1,996 million.

b. The equity value per share of Trux Ltd is $6.80.

(a) To estimate the value of Trux's shares using the discounted free cash flow (FCF) model, we have the following information:

Trux's historical FCF in the year just passed (year 0) was $120 million.

Trux expects its FCF to grow by 10% per year for the next three years (in year 1, year 2, and year 3).

Trux expects its FCF to grow by 4% per year indefinitely thereafter.

The cost of equity is 15%.

The cost of debt is 5%.

The weighted average cost of capital (WACC) is 12%.

The enterprise value of Trux can be determined using the following formula:

FCF1 = FCF0 × (1 + g1) = $120 million × (1 + 10%) = $132 million

FCF2 = FCF1 × (1 + g2) = $132 million × (1 + 10%) = $145.20 million

FCF3 = FCF2 × (1 + g3) = $145.20 million × (1 + 10%) = $159.72 million

Using the perpetuity formula:

FCF3 = FCF4 / (WACC - g)

We can solve for FCF4:

$159.72 million = FCF4 / (0.12 - 0.04)

FCF4 = $159.72 million / 0.08 = $1,996 million

Therefore, the enterprise value of Trux is $1,996 million.

(b) According to another analyst, the enterprise value of Trux Ltd is $2,500 million. The market value of net debt is $800 million. To calculate the equity value per share of Trux Ltd, we can use the following formula:

Equity value = Enterprise value - Market value of net debt

Equity value = $2,500 million - $800 million = $1,700 million

The number of shares is 250 million. Therefore, the equity value per share is:

Equity value per share = Equity value / Number of shares

Equity value per share = $1,700 million / 250 million shares = $6.80 per share

Therefore, the equity value per share of Trux Ltd is $6.80.

Learn more about cash flow

https://brainly.com/question/27994727

#SPJ11

Among the given options, the most accurate statement regarding specialty consumer products is d. Specialty products have an exclusive distribution process and aren't frequently purchased.Hence option D is correct.

Specialty consumer products are characterized by their unique features, high quality, and exclusivity, often catering to specific target markets. They are not commonly purchased items and are typically associated with a higher price range. Due to their exclusivity, specialty products usually have a selective distribution process, meaning they are available only through specific channels or authorized dealers.

Promotion for specialty products tends to focus on targeted marketing strategies rather than relying solely on word of mouth. This includes targeted advertising, personalized messaging, and marketing efforts aimed at reaching the specific audience interested in the product.

In conclusion, specialty consumer products have an exclusive distribution process and are not frequently purchased, making option d the most accurate statement.

Learn more about consumer products here

https://brainly.com/question/31860707

#SPJ4

The real value of investment after 5 years, 10 years and 20 years are: Investment Type5 Years10 Years20 Years(a)$11,767.33$8,762.75 $4,909.92  (b)$15,206.78 $16,357.32 $20,594.24

Percentage tax bracket = 36%

Interest rate = 7%

Investment = $15,000

Rate of inflation = 2%

To find,Real value of investment after 5 years, 10 years and 20 yearsThe formula to calculate the real value of investment is given as,

Real value = investment x (1 - tax rate) x (1 + interest rate) / (1 + inflation rate)^(number of years)1. In 5 years

Real value = $15,000 x (1 - 0.36) x (1 + 0.07) / (1 + 0.02)^5= $11,767.332.

In 10 yearsReal value = $15,000 x (1 - 0.36) x (1 + 0.07) / (1 + 0.02)^10= $8,762.753.

In 20 yearsReal value = $15,000 x (1 - 0.36) x (1 + 0.07) / (1 + 0.02)^20= $4,909.9

2Percentage tax bracket = 15%I

nterest rate = 14%

Investment = $15,000

Rate of inflation = 2%To find,

Real value of investment after 5 years, 10 years and 20 years

The formula to calculate the real value of investment is given as,

Real value = investment x (1 - tax rate) x (1 + interest rate) / (1 + inflation rate)^(number of years)1. In 5 yearsReal value = $15,000 x (1 - 0.15) x (1 + 0.14) / (1 + 0.02)^5= $15,206.782.

In 10 yearsReal value = $15,000 x (1 - 0.15) x (1 + 0.14) / (1 + 0.02)^10= $16,357.323.

In 20 yearsReal value = $15,000 x (1 - 0.15) x (1 + 0.14) / (1 + 0.02)^20= $20,594.24

Hence,The real value of investment after 5 years, 10 years and 20 years are:Investment Type5 Years10 Years20 Years(a)$11,767.33 $8,762.75 $4,909.9  2(b)$15,206.78  $16,357.32  $20,594.24

To learn more about investment, here:

https://brainly.com/question/15105766

#SPJ11

The two different types of product costing include job order costing and process costing. In job order costing, the costs are assigned to individual jobs, which are unique and made to order products. In process costing, the costs are assigned to processes, which produce standardized products in large quantities.

The environment in which these costing methods are used depends on the nature of the business and the type of product being produced.Job order costing has the benefit of being more precise since it tracks the cost of each individual job. It is useful when the products being produced are unique and require different materials and labor. However, it can be more time-consuming and expensive to implement than process costing.

Process costing, on the other hand, is more efficient and cost-effective when producing standardized products in large quantities. The cost of production is averaged across all units, making it easier to calculate and manage. However, it may not be as precise as job order costing since it does not account for variations in the production process.

Product costing is important for any company because it helps to determine the true cost of producing a product. It allows a company to make informed decisions regarding pricing, production, and resource allocation.

To know more about standardized visit :

https://brainly.com/question/31979065

#SPJ11

Remove your children from her classroom and tell everyone why you’re doing so would be the best course of action. Here's why for all three approaches.

Utilitarian approachAccording to the Utilitarian approach, the correct decision is the one that benefits the majority of individuals. In this case, keeping the children in the teacher's class may put them in danger and cause severe psychological distress to the parents, while removing the children from the classroom would cause them a slight inconvenience. As a result, the parents should select Option C and remove their children from the class and inform the school why they are doing so. This approach considers the consequences of an action.

In this case, every student has the right to be educated by a competent teacher who is mentally and physically healthy. The school's and the parents' moral duty is to safeguard the children's rights. Therefore, the parents should select Option C and inform the school of the teacher's condition. III. Preconventional stage of moral developmentThe preconventional level of moral development is characterized by the lack of any ethical concepts. In this case, if the parents are at the preconventional stage, they will select Option A and do nothing. This is because they may not realize the negative consequences of leaving their children in the teacher's class and breaking the patient confidentiality principle.

To know more about classroom visit:

https://brainly.com/question/9720416

#SPJ11

After making the necessary adjustments, the adjusted net income before tax for EFG is $625,545.

Based on the information provided, EFG reported a net income before tax of $607,000 on its financial statements. However, certain adjustments need to be made to arrive at the correct net income figure.

First, the allowance for bad debts decreased from $61,750 to $60,050 during the year. This indicates that $1,700 ($61,750 - $60,050) of bad debt expense was recognized. This expense should be deducted from the reported net income.

Secondly, EFG incurred a fine of $21,245 for a violation of state pollution control laws. Fines and penalties are generally not deductible expenses for tax purposes, so this amount should be added back to the reported net income.

Thirdly, EFG established an allowance for the contingent legal liability of $60,700 and recorded it as an accrued expense on the income statement. This is a non-cash expense and should not be included in the calculation of net income.

Lastly, the advanced payment of $200,310 received for inventory should not be recognized as revenue until the units are shipped. Since the units were shipped in February of the following year, this amount should not be included in the current year's net income.

To calculate the adjusted net income, we need to make the following adjustments:

Reported net income before tax: $607,000

Bad debt expense: -$1,700

Fine for violation: +$21,245

Accrued legal liability (non-cash): $0

Advanced payment for inventory (deferred revenue): $0

Adjusted net income before tax: $625,545

To learn more about net income

https://brainly.com/question/28390284

#SPJ11

KFC has collaborated with various businesses for profitable ventures. The collaboration can help the organization to achieve a competitive edge in the market. Digital marketing is an integral part of any business today.

Hence, the successful and popular digital marketing techniques used by KFC for collaboration with businesses are as follows:

1. Social Media Marketing: Social media has emerged as one of the most effective ways to reach out to potential customers. KFC collaborated with UberEats for food delivery. KFC shared the news about its partnership with UberEats on social media platforms. The social media channels allowed KFC to promote its new service with minimal investment.

2. Influencer Marketing: Influencer marketing is an excellent way to reach out to the target audience. KFC collaborated with Cheetos to create Cheetos Chicken Sandwich. The sandwich had a significant social media buzz before it was released. KFC used a popular influencer to promote the new sandwich. The influencer helped KFC to reach out to a new audience.

3. Content Marketing: KFC has collaborated with various businesses to create new products. The collaboration creates content that can be used for marketing purposes. KFC collaborated with Taco Bell to create a new menu item called the Chicken Chalupa.

The new sandwich was highly popular among customers, and it helped KFC to increase its sales. The collaboration with UberEats was also highly successful. The food delivery service allowed KFC to reach out to more customers. Overall, KFC's collaborations with businesses were highly profitable and helped the organization to achieve a competitive edge in the market.

Know more about the competitive edge

https://brainly.com/question/14486110

#SPJ11

$24.68 expect Coolibah's stock to sell for at the end of three years. Sell generally refers to the act of reducing a long position in a securities or asset in the context of investing, particularly with options. Sell, in the context of financial research, denotes a suggestion to end a long position in a stock due to the possibility of a price decrease.

You'll most likely have to pay capital gains taxes if you sell equities for a profit. Generally, any profit you make on the sale of a stock is subject to tax at your ordinary tax rate if you held the shares for one year or less, or at 0%, 15%, or 20% if you held the shares for more than a year.

To learn more about stock, click here.

https://brainly.com/question/31940696

#SPJ4

The answer is for required rate of return None of the above.

Coolibah is a company whose stock is currently selling for $150 per share. The company is expected to grow at an annual rate of 4.5%. Based on this information, we can determine what the stock is expected to sell for at the end of three years.

To calculate the expected stock price at the end of three years, we can use the formula:

P = D / (r - g)

Where:

P = expected stock price at the end of three years

D = expected dividend per share in year 3r

= required rate of returng

= expected annual growth rateIn this case, we know that the current stock price is $150, and we're looking for the expected stock price at the end of three years. We don't know the expected dividend per share, but we can calculate it using the formula:

D3 = D0 x (1 + g)^3

where:

D3 = expected dividend per share in year 3

D0 = current dividend per shareg = expected annual growth rate

Substituting the given values, we get:

D3 = $5.25 x (1 + 0.045)^3D3 = $5.95

Now we can use the formula above to calculate the expected stock price at the end of three years:

P = D3 / (r - g)

We don't know the required rate of return (r), but we can calculate it using the capital asset pricing model (CAPM):

r = Rf + beta x (Rm - Rf)where:

r = required rate of return

Rf = risk-free rate of return

beta = beta coefficient

Rm = expected return of the market

We're not given the values of Rf, beta, or Rm, so we can't calculate the required rate of return. Therefore, we cannot determine the expected stock price at the end of three years.

So, the answer is: None of the above.

learn about rate of return on

https://brainly.com/question/1789817

#SPJ11

Bond Duration Calculation: The bond has a duration of approximately 4.818 years.

Relationship between Bond Duration and YTM: As the YTM increases, the bond duration decreases.

Change in Bond Price: If the interest rate increased from 15% to 16%, the bond price would decrease by approximately 4.82%.

Bond Duration Calculation:

Using the formula for bond duration:

Duration = [C × (1 - (1 + YTM)^(-n)) / YTM] + [n × F / (1 + YTM)^n]

C = Periodic coupon payment = 0.10 × $1,000 = $100

YTM = Yield to maturity = 15%

n = Number of periods (maturity) = 6 years

F = Face value = $1,000

Plugging in the values:

Duration = [100 × (1 - (1 + 0.15)^(-6)) / 0.15] + [6 × 1000 / (1 + 0.15)^6]

Duration ≈ 4.818 years

Relationship between Bond Duration and YTM:

As the YTM increases, the bond duration decreases. In this case, as the YTM increases from 15% to 16%, the bond duration would be expected to decrease.

Change in Bond Price:

To calculate the approximate percentage change in bond price, we use the formula:

Percentage change in price ≈ - (duration × yield change)

Duration = 4.818 years

Yield change = 16% - 15% = 1%

Plugging in the values:

Percentage change in price ≈ - (4.818 × 0.01)

Percentage change in price ≈ -0.04818 or approximately -4.82%

Therefore, if the interest rate increased from 15% to 16%, the approximate percentage change in the bond price would be a decrease of about 4.82%.

Learn more about bond here:-

https://brainly.com/question/14064867

#SPJ11

The maximum monthly payment this borrower qualifies for can be calculated using the housing expense ratio and the total debt ratio.  The correct answer is None of these are correct.

The housing expense ratio is the percentage of the borrower's gross monthly income that is allocated towards housing expenses. In this case, the housing expense ratio is 26%.

The total debt ratio is the percentage of the borrower's gross monthly income that is allocated towards all debt obligations, including housing expenses. In this case, the total debt ratio is 36%.

To calculate the maximum monthly payment, we need to find the amount of the borrower's gross monthly income that can be allocated towards housing expenses.

Step 1: Calculate the housing expense amount:
Monthly housing expense = (Housing expense ratio / 100) * Gross monthly income
Monthly housing expense = (26 / 100) * $80,000
Monthly housing expense = $20,800

Step 2: Calculate the maximum monthly payment:
Maximum monthly payment = Monthly housing expense - Monthly projected property taxes - Monthly projected home owners insurance
Maximum monthly payment = $20,800 - $500 - $150
Maximum monthly payment = $20,150

Therefore, the maximum monthly payment this borrower qualifies for is $20,150.

So, the correct answer is None of these are correct.

To know more about expense ratio refer here:
https://brainly.com/question/32673745#

#SPJ11