Is it a positive NPV decision for Pacific Grove? Pacific Grove Spice Company Exhibit 1 - Income
Fantastic news! We've Found the answer you've been seeking!
Question:
Is it a positive NPV decision for Pacific Grove?
Transcribed Image Text:
Pacific Grove Spice Company Exhibit 1 - Income Statement ($ in millions except for price per share) Income Statement Net Sales Cost of Goods Sold Gross Profit Margin R&D Expense SG&A Expense Earnings Before Interest & Taxes Interest Expense Earnings Before Income Taxes Income Taxes Net Income Growth rate of sale Income tax rate assumed Price/Earnings Ratio Market Value of Equity Common Shares Outstanding Price per share Note: 2012-2015 are projected data 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15 $46.180 $53.107 $57.887 26.784 30.802 33.575 19.396 22.305 24.312 0.739 0.850 14.916 17.260 3.741 4.195 2.906 0.835 0.225 0.610 2.940 1.255 0.339 0.916 15.00% 0.926 1.088 18.871 21.902 4.515 5.237 2.668 1.847 $68.017 $80.940 $93.081 $105.182 $116.751 $127.259 39.790 47.512 54.452 61.531 68.300 74.447 28.227 33.428 38.629 43.650 48.452 52.813 0.499 1.348 2.423 2.814 0.760 2.054 9.00% 17.50% 1.295 1.489 1.683 26.063 29.321 33.132 6.070 7.819 8.835 2.817 3.253 0.879 2.374 19.00% 16.0 $37.990 1,165,327 $32.60 3.237 4.581 1.237 3.344 3.582 5.254 1.418 3.835 1.868 36.777 9.807 3.894 5.913 1.597 4.316 15.00% 13.00% 11.00% 27.00% 27.00% 27.00% 2.036 40.087 10.690 4.124 6.566 1.773 4.793 9.00% 27.00% Pacific Grove Spice Company Exhibit 1 - Income Statement ($ in millions except for price per share) Income Statement Net Sales Cost of Goods Sold Gross Profit Margin R&D Expense SG&A Expense Earnings Before Interest & Taxes Interest Expense Earnings Before Income Taxes Income Taxes Net Income Growth rate of sale Income tax rate assumed Price/Earnings Ratio Market Value of Equity Common Shares Outstanding Price per share Note: 2012-2015 are projected data 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15 $46.180 $53.107 $57.887 26.784 30.802 33.575 19.396 22.305 24.312 0.739 0.850 14.916 17.260 3.741 4.195 2.906 0.835 0.225 0.610 2.940 1.255 0.339 0.916 15.00% 0.926 1.088 18.871 21.902 4.515 5.237 2.668 1.847 $68.017 $80.940 $93.081 $105.182 $116.751 $127.259 39.790 47.512 54.452 61.531 68.300 74.447 28.227 33.428 38.629 43.650 48.452 52.813 0.499 1.348 2.423 2.814 0.760 2.054 9.00% 17.50% 1.295 1.489 1.683 26.063 29.321 33.132 6.070 7.819 8.835 2.817 3.253 0.879 2.374 19.00% 16.0 $37.990 1,165,327 $32.60 3.237 4.581 1.237 3.344 3.582 5.254 1.418 3.835 1.868 36.777 9.807 3.894 5.913 1.597 4.316 15.00% 13.00% 11.00% 27.00% 27.00% 27.00% 2.036 40.087 10.690 4.124 6.566 1.773 4.793 9.00% 27.00%
Expert Answer:
Answer rating: 100% (QA)
ANSWER Based on the provided information it appears that Pacific Grove Spice Company has a positive ... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
Students also viewed these finance questions
-
Discuss the literature review. Why, over time, will it become easierfor a researcher construct this material? Discuss two purposes ofliterature reviews and their relevance.
-
HHL LEIPZIG GRADUATE SCHOOL OF MANAGEMENT Value chain management written examination. Date: July 7th 2022. Name: Maximum duration: 90 minutes A. Exercises (60/100 pts) VSM and flow exercise (20/60)...
-
FILE TOOLS VIEW Document1 - Microsoft Word Inventory Valuation and Control All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a...
-
Israel We I had been in Israel for two weeks. We were in our church tour bus, late at night, driving through the mountainous desert. The night was black no moon and only a few stars. The only light...
-
Which of the three regions of a cast structure is least desirable? Why are its properties highly directional?
-
A gas cylinder contains 1.0 mol of helium at a temperature of 20C. A second identical cylinder contains 1.0 mol of neon at 20C. The helium atoms are moving with a higher average speed, but the gas...
-
Label each of the following characteristics of a corporation as either an (A) advantage or a (D) disadvantage: a. Limited liability b. Taxation c. Regulations d. Transferability of ownership
-
Carlia Weaver has decided to start Carlia Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $750 per month. Labor costs are expected to be $75...
-
Which statement correctly identifies a characteristic of a term life insurance policy? A ) Term policies have a tax - deferred cash value buildup. B ) Term policies have decreasing premiums at older...
-
Calculate the Debt Service Coverage Ratio in year 10 for a $100,000,000 capital project with a 50/50 debt equity ratio, a cost of debt of 8%, a first year revenue of $8,000,000, a revenue inflation...
-
Let n E N. Let X1,...,X, be independent random variables uniformly distributed in (1,...,n}. Let Zn = minisaSn-1|X+1 - X. 1. Compute P(Z, = 0). 2. What is the limit of the sequence (P(Zn = 0)),>1? 3....
-
Oriole Company reports: Cash provided by operating activities $329000 Cash used by investing activities 116000 Cash provided by financing activities 142000 Beginning cash balance 92000 What is...
-
Tau issued a statement to one of its customers, Ancona Co for the month ended 28 February 20X5. At that date, the payable ledger account for Tau maintained by Ancona Co had a balance of $4,575. A...
-
Bentall Ink is a chain of tattoo parlors that follows IFRS. The following data is for Year 8: Golf club dues were $20,000. Fines for operating without the proper city zoning were $10,000. Automated...
-
Using the high-low method, the estimated variable cost of sales per unit sold? The following information is available for a company's cost of sales over the last four months. Month Units Sold Total...
-
Jim McEntee is provided with a company car which he is allowed to use for private purposes. The car was purchased on 1 November 2017 for $40,000. During the year Jim drove the car 30,000 km of which...
-
How is coffee ranked in comparison to other 'luxury' good markets such as alcohol and tobacco?
-
Consider a closed, rigid tank with a volume of 0.8L, filled with cold water initially at 27C. The tank is filled such that there are no voids (air pockets) within. The initial pressure within the...
-
What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?
-
You are considering three independent projects, project A, project B, and project C. Given the following cash- flow information, calculate the payback period for each. If you require a 3- year...
-
What legal restrictions may limit the amount of dividends to be paid?
-
If a person, a region, or a country can produce a good or service at a lower opportunity cost than others can, we say that they have a(n) _________ in the production of that good or service.
-
People _________ by concentrating their energies on the activity to which they are best suited because individuals incur _________ opportunity costs as a result.
-
Because most people seek opportunities that make them better off, we can _________ what will happen when incentives are _________.
Study smarter with the SolutionInn App