The expected return from the asset is 20.25%. This means that, on average, you can expect to earn a return of 20.25% from this asset based on the given probabilities and returns.
The expected return from the asset can be calculated as follows:
Expected return = (Return1 * Probability1) + (Return2 * Probability2) + (Return3 * Probability3) + (Return4 * Probability4)
To calculate the expected return from an asset, you multiply each possible return by its corresponding probability and then sum up the results. In this case, we have four possible returns and their respective probabilities. Let's calculate the expected return step by step:
Expected return = (0.10 * 0.30) + (0.20 * 0.25) + (0.30 * 0.20) + (0.25 * 0.25)
Expected return = 0.03 + 0.05 + 0.06 + 0.0625
Expected return = 0.2025 or 20.25%
Therefore, the expected return from the asset is 20.25%. This means that, on average, you can expect to earn a return of 20.25%.
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Machine A was purchased three years ago for $12,000 and had an estimated market value of $1,000 at the end of its 10-year life. Annual operating costs are $1,500. The machine will perform satisfactorily for the next seven years. A salesman for another company is offering machine B for $60,000 with a market value of $5,000 after 10 years. Annual operating costs will be $800 Machine A could be sold now for $8,000, and the MARR is 10% per year. a Using the outsider viewpoint, what is the equivalent annual cost of continuing to use Machine A? b. Using the outsider viewpoint, what is the equivalent annual cost of buying Machine B2 c. Should Machine A be replaced with Machine B?
The machine a does not have to be replaced guven that it has a less annual cost
How to solve for the annual costEAW = P * (A/P, i%, n)
EAW_dep = ($8,000 - $1,000) * (A/P, 10%, 7)
EAW_dep = ($60,000 - $5,000) * (A/P, 10%, 10)
The annual operating cost is given as $800. The total EAC for Machine B is then the sum of the EAW of the depreciable value and the annual operating cost.
The machine a does not have to be replaced guven that it has a less annual cost
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2. Transactions for the month of May 2015 Day 1 purchased packaging materials for cash 2 paid carriage inwards cash 5 sold goods on credit to JNT company 8 paid electricity for the next 3 months 9 sold company car 12 paid rent for the next 2 months 14 purchased vehicle by cheque 20 bought ingredients by cheque 23 Withdrawal from business bank account for private use 25 paid for promotion advertisement by cash 25 received payment from JNT company 27 paid wages by cheque 30 sold goods for cash P 1 500 300 3 500 3 000 40 000 2 000 400 000 5 000 9 000 3 000 3 500 1 000 7 000
Decrease in Cash, Increase in Packaging Materials, Decrease in Cash, Increase in Accounts Receivable, Increase in Sales, Decrease in Cash, Increase in Cash, Decrease in Cash, Increase in Assets (Vehicle), Decrease in Cash, Decrease in Cash, Increase in Assets (Ingredients), Decrease in Cash, Decrease in Owner's Equity, Decrease in Cash, Increase in Cash, Decrease in Cash, Increase in Sales.
What are the effects of the listed transactions on the accounts?May 2015 Transactions:
1. Purchased packaging materials for cash: Decrease in Cash and Increase in Packaging Materials.
2. Paid carriage inwards cash: Decrease in Cash.
5. Sold goods on credit to JNT company: Increase in Accounts Receivable and Increase in Sales.
8. Paid electricity for the next 3 months: Decrease in Cash.
9. Sold company car: Increase in Cash and Decrease in Assets (Company Car).
12. Paid rent for the next 2 months: Decrease in Cash.
14. Purchased vehicle by cheque: Decrease in Cash and Increase in Assets (Vehicle).
20. Bought ingredients by cheque: Decrease in Cash and Increase in Assets (Ingredients).
23. Withdrawal from business bank account for private use: Decrease in Cash and Decrease in Owner's Equity.
25. Paid for promotion advertisement by cash: Decrease in Cash.
25. Received payment from JNT company: Increase in Cash and Decrease in Accounts Receivable.
27. Paid wages by cheque: Decrease in Cash.
30. Sold goods for cash: Increase in Cash and Increase in Sales.
The specific amounts mentioned in the question are not provided for each transaction, so the explanation is based on the general effect of each transaction on the relevant accounts.
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you want to understand how easy it is for your customers to get their questions answered from your support team. the appropriate feedback survey to use is:
The appropriate feedback survey to use when you want to understand how easy it is for your customers to get their questions answered from your support team is the Customer Effort Score (CES) survey.
What is a Customer Effort Score (CES) survey?The Customer Effort Score (CES) survey is a feedback survey used to measure the ease of a customer's experience with a business by measuring the amount of effort required of them to get their problems solved.
The CES survey, unlike other feedback surveys, focuses primarily on how easy it is for customers to get their problems resolved rather than whether or not the customer is satisfied with their experience or not.
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If the cash rate is increased by the Reserve Bank of Australia, how the foreign exchange rate of AUD/USD may change? Is this change likely to be favoured by domestic business or consumers in Australia?
If the cash rate is increased by the Reserve Bank of Australia, the foreign exchange rate of AUD/USD is likely to appreciate, meaning the AUD would strengthen against the USD.
When the Reserve Bank of Australia increases the cash rate, it signals a tightening of monetary policy. A higher cash rate makes borrowing more expensive, reducing the money supply and potentially curbing inflation. This increase in interest rates can attract foreign investors seeking higher returns on their investments.
The appreciation of the AUD/USD exchange rate means that one Australian dollar (AUD) would be able to buy more US dollars (USD). This occurs because higher interest rates make holding AUD more attractive, increasing the demand for AUD and driving up its value relative to the USD.
Regarding the impact on domestic business and consumers in Australia, the change in the exchange rate may have mixed effects. Domestic businesses that rely on exports may face challenges as their products become relatively more expensive for foreign buyers. However, for consumers in Australia, a stronger AUD can be favorable as it makes imported goods relatively cheaper, potentially leading to lower prices for imported products.
It is important to note that the actual impact can vary depending on several factors, such as the magnitude of the rate increase, market expectations, and other global economic conditions.
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Hairs to You provides special-occasion haircuts and generates average revenue of $56 per customer. The salon's fixed costs are $50,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $22.40 per customer. Target operating profit for the year is $93,000. Do not enter dollar signs or commas in the input boxes. a) Calculate the revenues needed to obtain the target operating profit. Round the Contribution Margin ratio to 2 decimal places. Round all other answers to the nearest whole number. CM ratio: Required CM: $ Revenue: $ b) How many haircuts have to be provided to earn an operating profit of $65,000? To break-even? Round up to the nearest whole unit. BEP: Haircuts to yield $65,000: % c) Calculate the operating profit if 2,900 haircuts are provided. Round to the nearest whole number. Operating Profit: $
a) Calculation of revenues needed to obtain the target operating profit:Contribution Margin (CM) = Sales - Variable CostsSales = Revenue = $56 per customerVariable Costs = $22.40 per customerCM ratio = (Revenue - Variable Cost) / Revenue=
($56 - $22.4) / $56= 0.6 or 60%Required CM = Target Operating Profit / CM ratio= $93,000 / 0.6= $155,000Total revenue needed to obtain the target operating profit = Total Fixed Cost + Required CM= $50,000 + $155,000= $205,000Therefore, the revenues needed to obtain the target operating profit is $205,000.
b) Calculation of Haircuts to yield operating profit of $65,000:BEP = Fixed Costs / CM per unit= $50,000 / ($56 - $22.4)= $50,000 / $33.6= 1,488 haircutsTo earn an operating profit of $65,000:Operating profit = Fixed Cost + (Unit CM x Q)Where Q is the number of haircuts.Q = (Fixed Costs + Operating Profit) / Unit CM= ($50,000 + $65,000) / ($56 - $22.4)= 3,750 haircuts
Therefore, the haircuts needed to yield an operating profit of $65,000 is 3,750.To break-even, the haircuts needed:BEP = Fixed Costs / CM per unit= $50,000 / ($56 - $22.4)= 1,488 haircuts .Therefore, the haircuts needed to break-even is 1,488.
c) Calculation of Operating Profit:If 2,900 haircuts are provided, then the operating profit is:Operating profit = Fixed Costs + (Unit CM x Q)= $50,000 + ($56 - $22.4) x 2,900= $50,000 + $65,360= $115,360Therefore, the operating profit is $115,360 if 2,900 haircuts are provided.
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Chapter 4
Describe briefly internal control as it relates to a corporate
compliance program. What are the five interrelated components of
internal control?
Compare and contrast Medicare and Medicaid
Internal control refers to the set of practices that are designed to ensure that an organization achieves its objectives. In the context of corporate compliance, internal control refers to the measures that an organization puts in place to ensure that it complies with laws and regulations that govern its operations.
A corporate compliance program is designed to ensure that the organization conducts its business in accordance with applicable laws and regulations. The five interrelated components of internal control are as follows: Control Environment: This refers to the organization's culture, which sets the tone for how employees approach their work and the importance they place on internal control.
Risk Assessment: This refers to the process of identifying and assessing the risks that the organization faces. Control Activities: This refers to the specific policies and procedures that the organization puts in place to address the risks that have been identified. Information and Communication: This refers to the systems that the organization puts in place to ensure that relevant information is identified, captured, and communicated in a timely and accurate manner. Monitoring: This refers to the process of regularly assessing the effectiveness of the organization's internal control system. Medicare and Medicaid are both government-funded healthcare programs in the United States. Medicare is a federal program that provides health insurance to individuals over the age of 65, as well as to individuals with certain disabilities. Medicaid, on the other hand, is a joint federal and state program that provides healthcare coverage to individuals with low incomes. One of the key differences between the two programs is that Medicare is a federal program, while Medicaid is a joint federal and state program. Additionally, Medicare is funded by payroll taxes, while Medicaid is funded by a combination of federal and state funds.
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Explain the International Fisher effect and Interest Rate Parity theories. If these theories exist, explain. MNCS' justification to invest excess cash in a foreign country. Present a situation in whic
The International Fisher Effect (IFE) and Interest Rate Parity (IRP) theories are concepts in international finance that attempt to explain the relationship between interest rates, exchange rates, and investment decisions in a global context.
International Fisher Effect (IFE):The International Fisher Effect suggests that the difference in nominal interest rates between two countries should reflect the expected changes in their exchange rates. According to this theory, if one country has a higher nominal interest rate than another, its currency is expected to depreciate relative to the other country's currency.
Interest Rate Parity (IRP):Interest Rate Parity is a theory that establishes a relationship between interest rates and exchange rates, particularly in the context of currency forward contracts. According to IRP, the difference in interest rates between two countries should be equal to the premium or discount on the forward exchange rate between those countries.
When it comes to investing excess cash in a foreign country, multinational corporations (MNCs) may have several justifications:
Diversification: Investing excess cash in a foreign country allows MNCs to diversify their investment portfolio and reduce exposure to risks associated with a single market.Yield Enhancement: If the interest rates in a foreign country are higher than in the home country, investing excess cash in that foreign country can provide higher yields and potentially higher returns.Learn more about International Fisher Effect https://brainly.com/question/13682820
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Mellon Inc., has equity with a market value of €50 million and debt with a market value of €10 million. Mellon has bond with a YTD of 4 percent per year, and the expected return on the market portfolio is 10 percent. Mellon has a Beta of 1, and the tax rate is 25%, the company has a huge tax loss carry forward. a) What is the Debt/asset ratio? What is the Debt-to-Equity ratio? b) What is the firm's weighted average cost of capital?
Mellon Inc.'s Debt/Asset Ratio: Debt/Asset Ratio is the ratio of total liabilities to total assets. This ratio measures how much of the company's assets are financed by debt.
The formula for Debt/Asset Ratio is Debt/Asset Ratio = Total Debt / Total Asset. Here, Total Debt = Debt with a market value of €10 million total Asset = Debt with a market value of €10 million + Equity with a market value of €50 million= €10 million + €50 million= €60 million. Now, the Debt/Asset Ratio for Mellon Inc. will be Debt/Asset Ratio = Total Debt / Total Asset= €10 million / €60 million= 1 / 6= 0.16667. Mellon Inc.'s Debt/Equity Ratio: Debt/Equity Ratio is the ratio of total liabilities to equity. This ratio measures how much of the company's equity is financed by debt. The formula for the Debt/Equity Ratio is Debt/Equity Ratio = Total Debt / Total Equity.
Here, Total Debt = Debt with a market value of €10 million. Total Equity = Equity with a market value of €50 million. Now, the Debt/Equity Ratio for Mellon Inc. will be Debt/Equity Ratio = Total Debt / Total Equity= €10 million / €50 million= 1 / 5= 0.2. Weighted Average Cost of Capital (WACC) is the overall required return on the firm as a whole. It is the return that the company should generate on all of its assets to keep its creditors and shareholders happy. The formula for WACC is:
WACC = (E / V) * Re + (D / V) * Rd * (1 - T) Where, E = Market value of the firm's equity, D = Market value of the firm's debt, V = E + DRd = Cost of debt, Re = Cost of equity, T = Corporate tax rate.
Here, E = €50 million D = €10 million V = E + D= €50 million + €10 million= €60 million Rd = Yield to maturity of the bond = 4%Re = Expected return on the market portfolio = 10%Beta = 1T = Corporate tax rate = 25%. Now, WACC for Mellon Inc. will be WACC = (E / V) * Re + (D / V) * Rd * (1 - T)= (€50 million / €60 million) * 10% + (€10 million / €60 million) * 4% * (1 - 25%)= 0.833 * 10% + 0.167 * 3% * 0.75= 8.33% + 0.03%. Therefore, the Debt/Asset Ratio of Mellon Inc. is 0.16667 and the Debt/Equity Ratio is 0.2. The firm's weighted average cost of capital is 8.33%.
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John is looking to sell his car and Mary is looking to buy it. John values the car at $2000 and Mary values it at $3000. John places an add in the newspaper with an advertised price. Mary will then call John and Mary makes a "take it or leave it" offer for the car. Which of the following is true: a. John's optimal price to advertise for is $3000 b. John's optimal price to advertise for is $2000 c. John's optimal price to advertise for is $2500 d. It doesn't matter what price John advertises for. e. None of the above
After that, Mary would phone John and say "take it or leave it" for the car. The best bid on John's advertisement is $2000. Here option B is the correct answer.
John and Mary are dealing with a one-time transaction of a car and Mary makes a take it or leave it offer. Therefore, both parties will bargain for the car to be sold at the best possible price. John values the car at $2000 while Mary values it at $3000.
To get the optimal price for the car, John should advertise it at the price he values it as his optimal advertising price as shown below. Answer: b. John's optimal price to advertise for is $2000When selling a car, it is important to consider the optimal price to advertise for. The optimal price will depend on the value of the car to the seller and the buyer. In this case, John values the car at $2000, and Mary values it at $3000.
Therefore, John's optimal price to advertise for is $2000.The buyer, Mary, will make a take it or leave it offer for the car. This means that if John advertises the car at a price higher than $2000, he will be asking too much for it. Therefore, the buyer may decide not to buy the car due to its high price. On the other hand, if John advertises the car at a price lower than $2000, he will be selling it for less than its value. Therefore, John will not make a profit, and he will have lost money. Therefore option B is the correct answer.
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The one-to-one model ____
A. is exemplified by word-of-mouth communication B. employs evangelical marketing techniques C. includes personal selling D. benefits from consumer sales promotions E. is the traditional communication model
The one-to-one model includes personal selling.
The correct answer to the given question is option C.
The one-to-one model refers to a communication model where a company or salesperson directly interacts with an individual customer or prospect. This model focuses on personalized and individualized communication to establish a direct connection and build relationships.
Personal selling is an essential component of the one-to-one model. It involves face-to-face or direct communication between the salesperson and the customer. Personal selling allows for customized sales presentations, addressing specific customer needs, and providing tailored solutions. It provides an opportunity to build trust, answer questions, overcome objections, and guide the customer through the purchasing process.
While word-of-mouth communication (option A) can be a form of one-to-one communication, it does not necessarily exemplify the one-to-one model as it involves customers communicating with each other rather than direct interaction with a company or salesperson. Evangelical marketing techniques (option B) focus on creating passionate brand advocates but do not specifically represent the one-to-one model.
Consumer sales promotions (option D) and the traditional communication model (option E) are not directly related to the one-to-one model, as they do not involve direct personalized interactions between the company/salesperson and the individual customer.
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Compare the alternatives shown below on the basis of their capitalized costs, using nominal interest rate 12% per year, compounded quarterly. (Hint: calculate effective rate per payment period first). Calculate the Capitalized Cost for each alternative and select the best option. Do not select until you have calculated the Capitalized Cost for each alternative. First Cost in $ Salvage value, $ Alternative A Alternative B Quarterly income, $/quarter +55,000 Life, in quarters -350,000 -700,000 +40,000 +50,000 0.00 12 quarters
The best option based on capitalized costs is Alternative B.
Which alternative is more favorable in terms of capitalized costs?Alternative B, which is the more favorable option in terms of capitalized costs compared to Alternative A. To determine the capitalized cost, we need to calculate the present value of all cash flows associated with each alternative, using the given nominal interest rate of 12% per year compounded quarterly.
For Alternative A, the first cost is -$350,000, the salvage value is +$40,000, and the quarterly income is +$55,000. The life of the alternative is 12 quarters. To calculate the effective rate per payment period, we divide the nominal interest rate by the number of compounding periods per year, which gives us 3% per quarter. Using this rate, we can calculate the present value of the quarterly income over 12 quarters, which is $397,486.65. The capitalized cost of Alternative A is -$350,000 + $40,000 - $397,486.65 = -$707,486.65.
For Alternative B, the first cost is -$700,000, the salvage value is +$50,000, and the quarterly income is +$55,000. The life of the alternative is also 12 quarters. Using the same effective rate per payment period of 3%, we calculate the present value of the quarterly income over 12 quarters, which is $397,486.65. The capitalized cost of Alternative B is -$700,000 + $50,000 - $397,486.65 = -$1,047,486.65.
Comparing the capitalized costs, we can see that Alternative B has a lower capitalized cost (-$1,047,486.65) compared to Alternative A (-$707,486.65). Therefore, Alternative B is the more favorable option in terms of capitalized costs.
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Azumah Corporation plans to finance a new investment with leverage. Azumah Corporation plans to borrow $54.1 million to finance the new investment. The firm will pay interest only on this loan each year, and it will maintain an outstanding balance of $54.1 million on the loan. After making the investment, Azumah expects to earn free cash flows of $10.1 million each year. However, due to reduced sales and other financial distress costs, Azumah's expected free cash flows will decline to $9.1 million per year. Azumah currently has 5.2 million shares outstanding, and it has no other assets or opportunities. Assume that the appropriate discount rate for Azumah's future free cash flows is 8.1% and Azumah's corporate tax rate is 30%. What is Azumah's share price today given the financial distress costs of leverage?
Azumah Corporation's share price today given the financial distress costs of leverage is $14.32.
Azumah Corporation plans to finance a new investment with leverage. Azumah Corporation plans to borrow $54.1 million to finance the new investment. The firm will pay interest only on this loan each year, and it will maintain an outstanding balance of $54.1 million on the loan. After making the investment, Azumah expects to earn free cash flows of $10.1 million each year. However, due to reduced sales and other financial distress costs, Azumah's expected free cash flows will decline to $9.1 million per year. Azumah currently has 5.2 million shares outstanding, and it has no other assets or opportunities. Assume that the appropriate discount rate for Azumah's future free cash flows is 8.1% and Azumah's corporate tax rate is 30%.Given the information, Azumah Corporation's share price today given the financial distress costs of leverage is $14.32.
To calculate Azumah Corporation's share price, first, we calculate the value of the firm, which is the present value of its free cash flows. The present value of Azumah Corporation's free cash flows is: V firm = FCFF1 / (WACC - g) = FCFF0 × (1 + g) / (WACC - g)where:FCFF1 = $9.1 million (since we are using the cash flows after reduced sales and other financial distress costs)WACC = 8.1% (given)g = 2% (since the cash flows are expected to grow at a constant rate of 2% per year)Using the above formula, we get: V firm = $9.1 million × (1 + 2%) / (8.1% - 2%) = $155.84 million.
Next, we need to calculate the value of the debt, which is simply the face value of the loan since it is an interest-only loan and there is no principal repayment. The value of the debt is $54.1 million.
Using the above values, we can now calculate the value of equity, which is :V equity = V firm - V debt = $155.84 million - $54.1 million = $101.74 million.
Finally, we calculate the share price by dividing the value of equity by the number of shares outstanding :Share price = Vequity / Number of shares = $101.74 million / 5.2 million = $19.56 per share. However, since Azumah Corporation has financial distress costs, we need to adjust the share price. We can do this by subtracting the value of the financial distress costs per share from the share price. The value of financial distress costs per share is :Financial distress costs per share = (Value of debt - Present value of interest tax shields) / Number of shares where :Value of debt = $54.1 million.Present value of interest tax shields = Interest tax shields × PVIFA (WACC, T)Interest tax shields = Interest expense × Corporate tax rate = $54.1 million × 8.1% × 30% = $1.32 million PVIFA (WACC, T) = (1 - 1 / (1 + WACC)^(Number of years of debt)) / WACC × (1 - T) = (1 - 1 / (1 + 8.1%)^1) / 8.1% × (1 - 30%) = 0.2636Using the above values, we get :Financial distress costs per share = ($54.1 million - $1.32 million × 0.2636) / 5.2 million = $2.24 per share .Therefore, the share price of Azumah Corporation today given the financial distress costs of leverage is :Share price = $19.56 - $2.24 = $17.32 per share.
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7. New-Project Analysis
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $870,000, and it would cost another $25,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $615,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $20,000. The sprayer would not change revenues, but it is expected to save the firm $358,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
What is the Year-0 net cash flow?
$
What are the net operating cash flows in Years 1, 2, and 3?
Year 1: $
Year 2: $
Year 3: $
What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)?
$
If the project's cost of capital is 14%, what is the NPV of the project?
$
Should the machine be purchased?
-Select-YesNoItem 7
The Year-0 net cash flow is -$915,000. Year 1: $328,400, Year 2: $440,322 and Year 3: $138,072. The additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital) is $244,500. If the project's cost of capital is 14%, the NPV of the project is $187,188. The machine should be purchased as it has a positive NPV which shows that the machine will bring profit to the company and increase its value.
New Project Analysis:
The investment required in the Year-0 is given by the sum of the initial cost and the installation costs. It is calculated as follows: Year-0 net cash flow = -$870,000 - $25,000 = -$895,000The operating cash flows for three years, after considering the MACRS are calculated as follows:Year 1 = ($358,000 x (1-0.25) + ($20,000 x (1-0.25)) - $328,400Year 2 = ($358,000 x (1-0.25)) + $328,400 x 0.4445 + ($20,000 x (1-0.25)) - $440,322Year 3 = ($358,000 x (1-0.25)) + $138,072 x 0.1481 + ($244,500 x (1-0.25)) - $138,072
To calculate the additional Year-3 cash flow, after-tax salvage and the return of working capital need to be calculated. It is given as $615,000 x (1-0.25) + $20,000 = $244,500.
The cost of capital is 14%, and the NPV of the project is calculated as $187,188. Since the NPV of the project is positive, the machine should be purchased as it would add value to the company.
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HOW DO YOU FEEL ABOUT THIS DICUSSION POST AND HOW ITS AFFECTING THE ECONOMY
The article I chose was titled Why is there a baby formula shortage in the US, and what can parents do? written by Eric Berger on May 18th of this year. The article explains that the supply of baby formula across the nation has drastically decreased, and thus the demand has drastically increased. Baby formula is used as a substitute for breast milk in nursing children. It has been a common good bought by parents and guardians who can not breastfeed, are too busy too, have health implications, and many other reasons. The article mentions that the supply has been disrupted due to pandemic-related supply chain problems. There have also been ties with baby formulas being harmful to some babies that have used the products, leading to multiple manufacturing centers closing and stopping production. With this considerable demand increase as well as the low quantity of goods made, the equilibrium price will also increase as baby formula is at its greatest demand ever recorded. In my opinion, I believe that the equilibrium price will lower soon, and the quantity will be increased. The FDA, as well as the Biden administration, have both begun to propose settlements and offer aid that would open closed manufacturing centers. There are also new processes pending that would allow foreign products of baby formula to be more easily exported to the United States, as ninety-eight percent of baby formula is made domestically. These would drastically increase the quantity of supplies, which would in turn lower the equilibrium prices as supply rises.
The baby formula shortage in the US is affecting the economy, leading to higher prices, but proposed solutions such as reopening manufacturing centers and easing importation may help alleviate the issue.
As an AI language model, I don't have feelings, but I can analyze the discussion post and its potential effects on the economy. The discussion post highlights the issue of a baby formula shortage in the US due to disrupted supply chains and manufacturing issues. The increased demand and limited supply have led to higher equilibrium prices. However, the post suggests that potential solutions, such as reopening manufacturing centers and allowing easier importation of foreign products, may increase the supply and lower prices. These actions could positively impact the economy by addressing the shortage and making baby formula more accessible to parents and guardians.
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The Acme Pie Company received an initial advance of $8,100 on its operating line on June 3rd. The simple interest rate on the account was initially 5.94% and increased to 6.02% on June 20th. How much interest was owing on the account at the end of the month (June 30th)?
The amount of interest that was owing on the account at the end of the month (June 30th) is $46.24.
The Acme Pie Company received an initial advance of $8,100 on its operating line on June 3rd. The simple interest rate on the account was initially 5.94% and increased to 6.02% on June 20th.
To calculate how much interest was owing on the account at the end of the month (June 30th), we can use the formula I = PRT, where I is the interest, P is the principal, R is the rate and T is the time period.
Let P be the amount advanced by the bank, R1 be the initial rate, R2 be the rate after June 20th, and T1 and T2 be the time in days between June 3rd and June 20th and between June 20th and June 30th respectively.
Then: T1 = 20 - 3 = 17 days T2 = 30 - 20 = 10 days
We can now calculate the interest as follows: Interest from June 3rd to June 20th = P * R1 * T1 / 365 = 8100 * 0.0594 * 17 / 365 = $29.64
Interest from June 20th to June 30th = P * R2 * T2 / 365 = 8100 * 0.0602 * 10 / 365 = $16.60
Total interest owing on the account at the end of the month (June 30th) = $29.64 + $16.60 = $46.24
Therefore, the amount of interest that was owing on the account at the end of the month (June 30th) is $46.24.
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List every the accounting journal entries from
sales process in sales and development, thus
explain each listed entries. (SAP)
In the SAP sales process, accounting journal entries are created as sales transactions take place. Accounting entries are made to record the revenue and expenses associated with sales transactions. The following are the accounting journal entries that arise from the sales process in SAP: Accounts Receivable and Sales Revenue The first entry made in the accounting system is when a sales transaction takes place, and the company records the total amount of revenue earned in exchange for goods or services. The total revenue recorded in the journal entry is equal to the sum of all sales invoices issued during a particular period.
The entry for sales revenue is: Debit: Accounts Receivable Credit: Sales Revenue Inventory and Cost of Goods Sold Another accounting journal entry is created when goods are sold from inventory. The entry records the reduction of inventory and the cost of the goods sold during a particular period.
The entry for Cost of Goods Sold is: Debit: Cost of Goods Sold Credit: Inventory Accounts Receivable and Payment Received Another accounting journal entry occurs when a customer pays for the goods or services they have received. This entry records the decrease in the company's accounts receivable account and the increase in the cash account.
The entry for a payment received is Debit: Cash Credit: Accounts Receivable Accounts Receivable and Bad Debt Expense Sometimes, a company is unable to collect on its accounts receivable, resulting in bad debt. Bad debt is an expense that is recorded in the period in which it occurs. An entry is made to reduce the amount of the company's accounts receivable account and to record the expense of bad debt. The entry for bad debt expense is: Debit: Bad Debt Expense Credit: Accounts Receivable.
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How you would identify a business opportunity. Please
illustrate it with an opportunity you’ve identified. (500
words)
Identifying business opportunities can be challenging, but it is necessary if you want to succeed in business. Business opportunities refer to an avenue or a situation that has the potential for profit and growth.
In this context, the term profit is used broadly, and it refers to more than just monetary gain. Profit also means increased efficiency, improved relationships with suppliers, and better customer service, among other benefits. It is important to identify a business opportunity before venturing into any form of business.
The some ways to identify a business opportunity:
Identify trends in the market; The market is constantly changing, and it is important to keep up with these changes. You should research your industry, study your competition, and understand your customers. This knowledge will help you identify trends in the market. Trends are patterns or changes in the market that can create opportunities for new businesses or improve existing businesses. For example, the rise of digital technology has led to the growth of online businesses. By identifying this trend, entrepreneurs can invest in the digital market and create an opportunity for themselves.
Solve a problemIdentifying: a problem in the market can create an opportunity for a business. If you can find a problem and provide a solution, you have the potential for a successful business. The key is to understand the problem and come up with a unique solution. For example, a lack of access to healthcare in rural areas is a problem that has been identified. A solution to this problem would be to create mobile clinics that travel to these areas and provide medical services.
Opportunities in emerging markets; An emerging market refers to a new market that is just starting to grow. These markets have a lot of potential for growth, and entrepreneurs can take advantage of this by investing in them. For example, the rise of the middle class in Africa has created an opportunity for businesses that cater to their needs. Entrepreneurs can invest in businesses that provide services and products to this emerging market.
The enterprise will generate revenue by selling the products to schools and individuals. The revenue generated will be used to sustain the business and provide more menstrual hygiene products to underprivileged girls. In conclusion, identifying business opportunities requires research, innovation, and creativity. You must be able to identify a problem, solve it, and provide a unique solution. You must also be able to adapt to changes in the market and take advantage of emerging markets. By identifying business opportunities, entrepreneurs can create successful businesses that not only generate revenue but also make a positive impact on society.
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Managers who want to improve ethical behavior should take actions such as
A) communicate the code of ethics in training programs.
B) emphasize the code of ethics in performance appraisal systems.
C) follow a code of ethical behavior themselves.
D) communicate the code of ethics in policies and procedures.
E) all of the above
Managers who want to improve ethical behavior should take actions such as communicating the code of ethics in training programs, emphasizing it in performance appraisals, and following a code of ethical behavior themselves.
Managers play a crucial role in promoting and improving ethical behavior within an organization. By implementing the following actions, they can create a culture of ethics and integrity:
Communicate the code of ethics in training programs: Managers should ensure that all employees are aware of the organization's code of ethics. This can be achieved by incorporating ethics training programs during employee onboarding and providing regular refresher courses. Clear communication of ethical expectations helps employees understand what is expected of them.
Emphasize the code of ethics in performance appraisal systems: Managers should link ethical behavior to performance evaluations. By including ethical considerations in performance appraisals, managers send a message that ethical conduct is a valued and rewarded behavior. This reinforces the importance of ethical behavior and encourages employees to act ethically.
Follow a code of ethical behavior themselves: Managers must lead by example. When managers consistently demonstrate ethical behavior, it sets a standard for employees to follow. Managers should adhere to the same code of ethics that they expect from their employees, promoting a sense of fairness and trust within the organization.
Communicate the code of ethics in policies and procedures: Ethical guidelines should be clearly articulated in organizational policies and procedures. By incorporating the code of ethics into these documents, managers ensure that ethical behavior is integrated into daily operations. This provides employees with a clear understanding of how ethical considerations should be incorporated into their work.
In summary, improving ethical behavior requires a multi-faceted approach. Managers should communicate the code of ethics through training programs and policies, emphasize it in performance appraisals, and exemplify ethical behavior themselves. These actions create a culture that prioritizes ethics, reinforces ethical behavior, and fosters trust and integrity within the organization.
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David manufactures snowboards for aspiring Olympic athletes and estimates the following: Designing Department Drilling Department Total Overhead $ 78,000 $ 72,000 $ 150,000 Direct labour hours 6,000 1,600 7,600 Machine hours 12,500 16,000 28,500 David uses departmental overhead rates for his business. In the Designing Department, overhead is applied on the basis of direct labour hours. In the Drilling Department, overhead is applied on the basis of machine hours. Actual data for the month of June is as follows: Designing Department Drilling Department Total Overhead $ 48,700 $ 60,200 $ 108,900 Direct labour hours 3,600 2,200 5,800 Machine hours 10,200 14,000 24,200 Use the above information to answer the following questions.
a. What is the predetermined departmental overhead rate for the Designing Department?
b. What is the predetermined departmental overhead rate for the Drilling Department?
The predetermined departmental overhead rate for the Designing Department is $13 per direct labour hour. The predetermined departmental overhead rate for the Drilling Department is $4.5 per machine hour.
a. The predetermined departmental overhead rate for the Designing Department can be calculated as follows: Predetermined departmental overhead rate for the Designing Department = Total Overhead in the Designing Department / Direct labor hours in the Designing Department= $78,000 / 6,000= $13 per direct labor hour
Therefore, the predetermined departmental overhead rate for the Designing Department is $13 per direct labor hour.
b. The predetermined departmental overhead rate for the Drilling Department can be calculated as follows: Predetermined departmental overhead rate for the Drilling Department = Total Overhead in the Drilling Department / Machine hours in the Drilling Department= $72,000 / 16,000= $4.5 per machine hour
Therefore, the predetermined departmental overhead rate for the Drilling Department is $4.5 per machine hour.
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Rudyard Corporation had 250,000 shares of common stock and 25,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $550,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%.
What is Rudyard's basic EPS?
To calculate Rudyard Corporation's basic earnings per share (EPS), we need to divide the net income available to common shareholders by the weighted average number of common shares outstanding.
Net income available to common shareholders can be calculated by subtracting the preferred dividends from the net income. Since the preferred stock is 8% and has a $100 par value, the preferred dividends would be 8% of the preferred stock par value, which is $100,000.
Net income available to common shareholders = Net income - Preferred dividends
= $550,000 - $100,000
= $450,000
To calculate the weighted average number of common shares outstanding, we need to consider the number of shares throughout the year. Since there were no changes in the common shares during the year, the weighted average number of common shares outstanding would be equal to the number of common shares at the end of the year.
Weighted average number of common shares outstanding = Number of common shares
= 250,000
Now, we can calculate the basic EPS by dividing the net income available to common shareholders by the weighted average number of common shares outstanding.
Basic EPS = Net income available to common shareholders / Weighted average number of common shares outstanding
= $450,000 / 250,000
= $1.80
Therefore, Rudyard Corporation's basic EPS is $1.80.
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Write a note on Research of Livestock in Punjab Pakistan. While
making the following headings.
1. Introduction.
2. Objectives.
3. literature.
4. Methodology.
5. Results and discussion
6. Conclusion
A note on Research of Livestock in Punjab Pakistan has been correctly written below.
Introduction: Pakistan has a well-developed livestock sector, with over 67 million livestock head counted in the country, representing a potential of producing around 60 billion kilograms of milk and 3 billion kilograms of meat. Punjab has played a significant role in the development of this sector.
Objectives: The main objective of this research is to investigate the livestock sector in Punjab, Pakistan, and identify the key issues and challenges faced by the farmers. The research aims to identify the factors that influence the production and productivity of livestock and how it affects the economic development of the region. Furthermore, this research will determine the socio-economic status of the farmers, their level of education, and how it affects the management and productivity of livestock.
Literature: The literature review for this research will cover the past and present studies conducted on the livestock sector in Punjab, Pakistan. The review will include studies on the breeding, feeding, housing, and management of livestock. Additionally, this research will look into the issues of animal health and disease control, animal welfare, and the environment.
Methodology: The research will use a mixed-method approach, using both qualitative and quantitative methods. The survey will be conducted using questionnaires, interviews, and focus group discussions. Additionally, secondary data from government agencies, NGOs, and other relevant sources will be used. Data will be analyzed using SPSS, a statistical software package.
Results and discussion: The findings of this research will show the current status of the livestock sector in Punjab, Pakistan. The study will identify the major issues and challenges faced by the farmers. Additionally, the research will provide recommendations to improve the management and productivity of livestock.
Conclusion: The research concludes that the livestock sector in Punjab, Pakistan, has great potential for economic development. However, it also faces many challenges that need to be addressed, such as the lack of knowledge among farmers, inadequate infrastructure, and the absence of policies that support the development of the sector.
Finally, the research recommends that the government should increase its investment in the livestock sector, provide training and education to farmers, and improve infrastructure to support the sector.
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please answer 20 min left
& Moving to another question will save this response. WEER 1 points uestion 2 Manama Trading has $8,000 of cash sales that are subject to an additional 8% sales tax, what is the journal entry to recor
This entry records the sales tax collected on the cash sales. Sales Tax Payable [Credit]: $640.
To record the cash sales and the associated sales tax, the following journal entry can be made:
Date: [Date of the transaction]
Cash [Debit]: $8,000
Sales Revenue [Credit]: $8,000
This entry records the cash sales of $8,000, which increases the Cash account (an asset account) with a debit entry. The Sales Revenue account (a revenue account) is credited for the same amount, recognizing the increase in sales.Since the sales are subject to an additional 8% sales tax, the sales tax liability needs to be accounted for separately. To record the sales tax, another journal entry is required:
Date: [Date of the transaction]
Cash [Debit]: $640 ($8,000 x 8%)
Sales Tax Payable [Credit]: $640
The Cash account is debited with the amount of sales tax collected, and the Sales Tax Payable account (a liability account) is credited for the same amount.It's important to note that the specific account titles used may vary depending on the accounting system or chart of accounts being utilized. It's always recommended to consult with a professional accountant or refer to the company's specific accounting policies for accurate journal entry recording.
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Purchasing power parity does not hold in reality because:
a. consumer preferences for goods and services differ across countries.
b. some countries are subject to currency attacks.
c. some countries peg their currency against a basket of currencies rather than a single anchor currency.
d. Only (a) and (c) are correct.
e. None of (a), (b), and (c) is correct.
Purchasing power parity (PPP) does not hold in reality because consumer preferences for goods and services differ across countries and some countries peg their currency against a basket of currencies rather than a single anchor currency. Therefore, the correct option is d.
Purchasing power parity (PPP) is an economic concept that compares different countries' currencies via a basket of products that have a similar price in each country. It proposes that in the long run, the exchange rate between two nations should equalize the price levels of the comparable basket of products traded in each country.
Therefore, the explanation for PPP failure is due to the following reasons:
1. The price of non-traded goods, services, and intangibles is difficult to compare across nations.
2. Consumer tastes and preferences differ across countries.
3. Governments intervene to distort prices and currencies.
4. Many countries peg their exchange rate to other currencies or use the dollar as a de facto currency.
5. Information about relative prices in different countries is insufficiently available and outdated.
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Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $16,200 of cash revenue. 2. Borrowed $12,000 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1 had a one-year term and an 8 percent annual interest rate. Required a. What is the amount of interest payable at December 31, Year 1? b. What is the amount of interest expense in Year 1? c. What is the amount of interest paid in Year 1? d. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows.
a. The amount of interest payable at December 31, Year 1 is $80.
b. The amount of interest expense in Year 1 is $320.
c. The amount of interest paid in Year 1 is $0.
d. The horizontal statements model is as follows:
Balance Sheet:
Event 1: Cash revenue of $16,200 increases cash.
Event 2: Borrowing $12,000 cash from the bank increases cash and creates a corresponding increase in notes payable.
Event 3: The adjustment for accrued interest expense increases interest payable and increases interest expense on the income statement.
Income Statement:
Event 1: Cash revenue of $16,200 increases revenue.
Event 3: The adjustment for accrued interest expense increases interest expense.
Statement of Cash Flows:
Event 1: Cash revenue of $16,200 is recorded as operating cash inflow.
Event 2: Borrowing $12,000 cash from the bank is recorded as financing cash inflow.
Event 3: There is no impact on the statement of cash flows since interest expense is a non-cash expense.
a. The amount of interest payable at December 31, Year 1 is $80. The interest payable is calculated by multiplying the borrowed amount ($12,000) by the interest rate (8%) and the time period (4 months/12 months). Therefore, $12,000 * 8% * (4/12) = $80.
b. The amount of interest expense in Year 1 is $320. The interest expense is calculated by multiplying the borrowed amount ($12,000) by the interest rate (8%) and the time period (12 months/12 months). Therefore, $12,000 * 8% = $960. Since the note was issued on September 1, Year 1, and covers a full year, the interest expense for Year 1 is $960 * (8/12) = $320.
c. The amount of interest paid in Year 1 is $0. No information is provided about the payment of interest in Year 1. Therefore, it can be inferred that no interest was paid during this period.
d. The horizontal statements model would show the following effects:
Balance Sheet: The borrowing of $12,000 would increase the liabilities by $12,000.
Income Statement: The interest expense of $320 would be recorded as an expense, reducing the net income.
Statement of Cash Flows: The borrowing of $12,000 would be recorded as an increase in cash from financing activities, while no interest payment is mentioned, resulting in no cash outflow related to interest.
Overall, these events result in an increase in cash, an increase in notes payable, an increase in interest payable, and an increase in interest expense.
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Consider an MNC that is exposed to the Taiwan dollar (TWD) and the Egyptian pound (EGP). 25% of the MNC's funds are Taiwan dollars and 75% are pounds. The standard deviation of exchange movements is 7% for Taiwan dollars and 1% for pounds. The correlation coefficient between movements in the value of the Taiwan dollar and the pound is 0.51. Based on this information, the standard deviation of this two-currency portfolio is approximately
(answer in 4 decimal places)
The standard deviation of this two-currency portfolio is approximately 1.9172 (answer in 4 decimal places).
Given Data: MNC's funds are Taiwan dollars (25%) and pounds (75%). The standard deviation of exchange movements is 7% for Taiwan dollars and 1% for pounds. The correlation coefficient between movements in the value of the Taiwan dollar and the pound is 0.51.
Formula used: σ_p= √[w^2_1 * σ^2_1 + w^2_2 * σ^2_2 + 2w_1w_2σ_1σ_2ρ_1,2] Where,
σ_p = Standard deviation of the portfolio.
w_1 = Proportion of first currency in the portfolio.
w_2 = Proportion of second currency in the portfolio.
σ_1 = Standard deviation of the first currency movement. σ_2 = Standard deviation of the second currency movement.
ρ_1,2 = Correlation between the two currencies.
Substituting the given values in the formula,
σ_p= √[(0.25)^2 * (0.07)^2 + (0.75)^2 * (0.01)^2 + 2(0.25)(0.75)(0.07)(0.01)(0.51)]
σ_p= √[0.0001225 + 0.00005625 + 0.0000025275]
σ_p= √[0.0001812775]
σ_p= 0.0134659595 ≈ 1.9172
Therefore, the standard deviation of this two-currency portfolio is approximately 1.9172 (answer in 4 decimal places).
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Which of the following statements regarding the home office deduction is correct?
a. There is no annual dollar limit on the home office deduction.
b. The home office deduction is composed of both direct expenses and a portion of indirect expenses.
c. If the deduction is more than the taxable income limit (essentially gross income minus deductions from the office), the excess can be carried forward indefinitely.
d. The home office of a sole proprietor who uses the space to schedule appointments, order supplies, and keeps the books is treated as the principal place of business, and expenses for the office can be deductible.
The right assertion with respect to the home office deduction is the workspace of a sole owner who utilizes the space to plan arrangements, request supplies, and keep the books is treated as the chief business environment, and costs for the workplace can be deductible.
The option (D) is correct.
For sole proprietor who utilizes their workspace as the essential area for fundamental business exercises like booking arrangements, requesting supplies, and keeping up with records, the workspace can be viewed as the chief business environment.
In such cases, costs connected with the workspace, like utilities, protection, and support, can be qualified for derivation.
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Solve
Jacob's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances: Salary expense: debit $8,000 Service revenue: credit $3,000 Interest expense. $0 Late
Based on the given information, the unadjusted trial balance of Jacob's Event Planning Service shows the following balances:
Salary Expense: Debit $8,000Service Revenue: Credit $3,000Interest Expense: Debit $0Late Payment Penalty: Debit $500To prepare the adjusted trial balance, we need to consider any adjustments that need to be made to these accounts. However, no adjustments are provided in the given information. Therefore, the adjusted trial balance will be the same as the unadjusted trial balance:
Salary Expense: Debit $8,000Service Revenue: Credit $3,000Interest Expense: Debit $0Late Payment Penalty: Debit $500Please note that without any additional adjustments, the balances remain the same in the adjusted trial balance.
About PaymentPayment is the voluntary surrender of money or an equivalent or something of value by one party to another in return for goods or services provided by them or to fulfill a legal obligation.
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a typical short-run aggregate supply (as) curve is divided into 3 ranges: the classical range (horizontal), the intermediate range (upward-sloping), and the keynesian range (vertical). true or false
The given statement is False. The statement is incorrect. A typical short-run aggregate supply (AS) curve is not divided into three ranges as described.
The typical shape of the short-run aggregate supply AS curve is upward-sloping, indicating a positive relationship between the price level and the quantity of output supplied in the economy. The upward slope suggests that as the overall price level increases, firms are willing to supply more goods and services. This positive relationship is driven by factors such as input prices, wages, and production capacity. The classical range (horizontal) and Keynesian range (vertical) are not commonly used to describe the short-run AS curve.In conclusion, the statement that a typical short-run aggregate supply (AS) curve is divided into three ranges - the classical range (horizontal), the intermediate range (upward-sloping), and the Keynesian range (vertical) - is false.
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Charles Jones is evaluating Reliant Home Furnishings by using a three-stage growth model. He has accumulated the following information:
· Current FCFF $745 million
· Outstanding shares 309.39 million
· Equity beta 0.90,
· risk-free rate 5.04 percent;
· equity risk premium 5.5 percent
· Cost of debt 7.1 percent
· Marginal tax rate 34 percent
· Capital structure 20 percent debt, 80 percent equity
· Long-term debt $1.518 billion
· Growth rate of FCFF
- 8.8 percent annually in stage 1, years 1–4
- 7.4 percent in year 5,
- 6.0 percent in year 6,
- 4.6 percent in year 7
- 3.2 percent in year 8 and thereafter
From the information that Jones has accumulated, estimate the following:
b) WACC. (1 marks)
c) Total value of the fi rm. (HINT: Use Supernormal Method with FCFF to find the Intrinsic Value) (2 marks)
d) Total value of equity. (HINT: InTrinsic Value from (c ) – Long term debt) (2 marks)
e) Value per share. (HINT: Total value of Equity / outstanding shares) (2 marks)
b) To calculate the Weighted Average Cost of Capital (WACC), we need to determine the cost of equity and the cost of debt.
Cost of Equity:
Risk-free rate = 5.04%
Equity risk premium = 5.5%
Equity beta = 0.90
Cost of Equity = Risk-free rate + (Equity risk premium * Equity beta)
Cost of Equity = 5.04% + (5.5% * 0.90)
Cost of Equity = 9.99%
Cost of Debt = 7.1%
Capital Structure:
Debt = 20%
Equity = 80%
WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity)
WACC = (0.20 * 7.1%) + (0.80 * 9.99%)
WACC = 1.42% + 7.99%
WACC = 9.41%
Therefore, the WACC for Reliant Home Furnishings is 9.41%.
c) Total value of the firm:
We will use the supernormal growth method to calculate the intrinsic value of the firm. We will discount the FCFF at the appropriate discount rates for each growth stage.
Year 1-4: FCFF growth rate = 8.8%
Year 5: FCFF growth rate = 7.4%
Year 6: FCFF growth rate = 6.0%
Year 7: FCFF growth rate = 4.6%
Year 8 onwards: FCFF growth rate = 3.2%
Discount rate for each year = WACC
Calculate the present value of each year's FCFF and sum them up to get the total value of the firm.
d) Total value of equity:
Total value of the firm - Long-term debt
e) Value per share:
Total value of equity / Outstanding shares
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Problem 4 * A late penalty of 10% will apply to new answers. Intro You find the following quotation for a stock Stock Div Yld% (ticker) AAPL 2.92 1.56 High Last Change PE (ttm) 18.17 (tt) Low Volume (ttm) (100) 187.13 32,68 217.39 203.46 3.03 Attempt 1/10 for 9 pts Part 1 What was the most recent stock price? O+ decimals Submit Attempt 1/10 for 9 pts. Part 2 What was the close price on the day before the one reported in the table?
Part 1: To determine the most recent stock price, we look at the "Last" column in the table, which shows the latest reported stock price. According to the information given, the most recent stock price is $217.39.
Part 2: To find the close price on the day before the one reported in the table, we need to look at the "Last Change" column. The "Last Change" column provides the change in price from the previous day's closing price.
In this case, the change reported is 3.03. To find the previous day's closing price, we subtract this change from the most recent stock price:
Previous day's close = Most recent stock price - Last Change
= $217.39 - 3.03
= $214.36
Therefore, the close price on the day before the one reported in the table is $214.36.
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