All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
finance
Questions and Answers of
Finance
An initial investment in an automated material handling machine of $100,000 will result in net cash inflows of $30,000 at the end of each year for four years. It will then have a market value of
A supply chain manager has to select a supplier to purchase some materials from. Supplier selection is a multiattribute decision-making problem. Table P14-10 matches a set of desired attributes with
You have volunteered to serve as a judge in a Midwestern contest to select Sunshine, the most wholesome pig in the world. Your assessments of the four finalists for each of the attributes used to
Consider the data from Problem 14-10. The purchasing department requires that non-dimensional scaling be applied to make their decision. Rate the individual attributes using Equations (14-1) and
The additive weighting model is a decision tool that aggregates information from different independent criteria to arrive at an overall score for each course of action being evaluated. The
Refer to Example 14-1. Mary Jones has been enlightened at a recent seminar and now rates hypnosis as her highest choice of anesthesia. The remaining anesthesia methods retain their relative order,
List two advantages and two disadvantages of noncompensatory models for dealing with multi-attribute decision problems. Do the same for compensatory models.
Discuss some of the difficulties of developing nonlinear functions for nondimensional scaling of qualitative (subjective) data.
The values for three alternatives considered against four criteria are given in Table P14-5 (with higher numbers being better). Show what you can conclude, using the following methods:a.
With reference to the data provided in Table P14-6 on, recommend the preferred alternative by using (a) Dominance, (b) Satisficing,
Three different types of boilers are being considered for a new power plant.a. By using the data in Table PI 4-8, recommend a preferred design with each method that was discussed in this chapter for
Mary Jones utilized the additive weighting technique to select a job with Sigma Ltd., in Macon, Georgia. The importance weights she placed on the four attributes in Table 14-1 were social climate =
Okra Snack Delights, Inc., has an operating profit of $210,000. Interest expense for the year was $30,000; preferred dividends paid were $24,700; and common dividends paid were $36,000. The tax was
Assume for Botox Facial Care discussed in Problem 18 that in 2011, earnings after taxes declined to $140,000 with the same 200,000 shares outstanding.The stock price declined to $24.50.a. Compute
Bettis Bus Company had earnings after taxes of $600,000 in the year 2009 with 300,000 shares of stock outstanding. On January 1, 2010, the firm issued 40,000 new shares. Because of the proceeds from
The Jupiter Corporation has a gross profit of $700,000 and $240,000 in depreciation expense. The Saturn Corporation also has $700,000 in gross profit, with $40,000 in depreciation expense. Selling
Coastal Pipeline, Inc., anticipated cash flow from operating activities of $8 million in 2010. It will need to spend $1.5 million on capital investments in order to remain competitive within the
The Rockford Corporation has assets of $380,000, current liabilities of $40,000, and long-term liabilities of $70,000. There is $30,000 in preferred stock outstanding; 20,000 shares of common stock
Amigo Software, Inc., has total assets of $800,000, current liabilities of $150,000, and long-term liabilities of $120,000. There is $65,000 in preferred stock outstanding. Thirty thousand shares of
Given the following information prepare in good form an income statement for the Dental Drilling Company.Selling and administrative expense
Given the following information, prepare in good form an income statement for Jonas Brothers Cough Drops.Selling and administrative expense
Prepare in good form an income statement for ATM Cards, Inc. Take your calculations all the way to computing earnings per share.Sales
Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per
a. Alpha Industries had an asset turnover of 1.4 times per year. If the return on total assets (investment) was 8.4 percent, what was Alpha's profit margin?b. The following year, on the same level
The King Card Company has a return-on-assets (investment) ratio of 12 percent.a. If the debt-to-total-assets ratio is 40 percent, what is the return on equity?b. If the firm had no debt, what would
The Chamberlain Corporation has an accounts receivable turnover equal to 12 times. If accounts receivable are equal to $90,000, what is the value for average daily credit sales?
Kamin Corporation has the following financial data for the years 2009 and 2010:a. Compute inventory turnover based on ratio number 6, Sales/Inventory, for each year.b. Compute inventory turnover
The balance sheet for the Bryan Corporation is shown below. Sales for the year were $3,040,000, with 75 percent of sales sold on credit.Compute the following ratios:a. Current ratio.b. Quick ratio.c.
Using the income statement for J. Lo Wedding Gowns below, compute the following ratios:a. The interest coverage.b. The fixed charge coverage.The total assets for this company equal $160,000. Set up
The Shannon Corporation has credit sales of $750,000. Given the following ratios, fill in the balance sheet at the bottom.Total assets turnover .................................... 2.5 timesCash to
Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports net income of $100,000.a. What is the return on the assets?b. What is the return on the stockholders' equity?c. If the
Assume in Problem 14 that the Bradley Corporation used LIFO accounting instead of FIFO; what would its gross profit be? What would be the value of ending inventory?
Victoria's Apparel has forecast credit sales for the fourth quarter of the year as:September (actual) ........................... $50,000Fourth QuarterOctober
In Problem 1 if there had been no increase in sales and all other facts were the same, what would Philip's ending cash balance be? What lesson do the examples in Problems 1 and 2 illustrate?
The Boswell Corporation forecasts its sales in units for the next four months as follows:March .........................................6,000April ...........................................8,000May
Lansing Auto Parts, Inc., has projected sales of $25,000 in October, $35,000 in November, and $30,000 in December. Of the company's sales, 20 percent are paid for by cash and 80 percent are sold on
Sales for Western Boot Stores are expected to be 40,000 units for October. The company likes to maintain 15 percent of unit sales for each month in ending inventory (i.e., the end of October).
The Harding Company manufactures skates. The company's income statement for 2010 is as follows:HARDING COMPANYIncome StatementFor the Year Ended December 31, 2010Sales (10,000 skates @ $50 each)
Mo & Chris's Delicious Burgers, Inc., sells food to Military Cafeterias for $15 a box. The fixed costs of this operation are $80,000, while the variable cost per box is $10.a. What is the
Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The separate capital structures for Cain and Able are presented below.a. Compute earnings per share if
In Problem 16, compute the stock price for Cain if it sells at 18 times earnings per share and EBIT is $40,000.
The Norman Automatic Mailer Machine Company is planning to expand production because of the increased volume of mailouts. The increased mailout capacity will cost $2,000,000. The expansion can be
The Lopez-Portillo Company has $10 million in assets, 80 percent financed by debt and 20 percent financed by common stock. The interest rate on the debt is 15 percent and the par value of the stock
Jay Linoleum Company has fixed costs of $70,000. Its product currently sells for $4 per unit and has variable costs per unit of $2.60. Mr. Thomas, the head of manufacturing, proposes to buy new
Austin Electronics expects sales next year to be $900,000 if the economy is strong, $650,000 if the economy is steady, and $375,000 if the economy is weak. The firm believes there is a 15 percent
Axle Supply Co. expects sales next year to be $300,000. Inventory and accounts receivable will increase by $60,000 to accommodate this sales level.The company has a steady profit margin of 10
Stern Educational TV, Inc., has decided to buy a new computer system with an expected life of three years at a cost of $200,000. The company can borrow $200,000 for three years at 12 percent annual
Beth's Society Clothiers, Inc., has collection centers across the country to speed up collections. The company also makes payments from remote disbursement centers so the firm's checks will take
In the second year, Fisk Corporation finds that it can reduce ordering costs to $2 per order but that carrying costs stay the same at $1.20. Also, volume remains at 75,000 units.Recompute a, b, c,
Comiskey Fence Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $180,000 in additional credit sales, 12 percent are likely to be
Reconsider Problem 19 c. Assume the average collection period is 120 days. All other factors are the same (including 12 percent uncollectibles). Should credit be extended?
In Problem 21, if inventory turnover had only been 4 times:a. What would be the new value for inventory investment?b. What would be the return on investment? You need to recompute the total
Sanders' Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of $210,000. Compute the value of the average collection period.
Eco-Friendly Products has annual credit sales of $900,000 and an average collection period of 30 days. Assume a 360-day year. What is the company's average accounts receivable balance? Accounts
In Problem 8, if accounts receivable change to $140,000, while credit sales are $1,440,000, should we assume the firm has a more or a less lenient credit policy?
Logan Drilling Corp. plans to borrow $200,000 for one year. Northern National Bank will lend the money at 10 percent interest and requires a compensating balance of 20 percent. What is the effective
Computer Graphics Company needs $250,000 in funds for a project.a. With a compensating balance requirement of 20 percent, how much will the firm need to borrow?b. Given your answer to part a and a
The Dade Company is borrowing $300,000 for one year and paying $27,000 in interest to Miami National Bank. The bank requires a 20 percent compensating balance. What is the effective rate of interest?
In Problem 22, if the compensating balance requirement were 10 percent instead of 20 percent, would you change your answer? Do the appropriate calculation.
A pawn shop will lend $100 for 10 days at a cost of $5 interest. What is the effective rate of interest?
Sol Pine is going to borrow $3,000 for one year at 8 percent interest. What is the effective rate of interest if the loan is discounted?
You invest $2,500 a year for three years at 8 percent.a. What is the value of your investment after one year? Multiply $2,500 × 1.08.b. What is the value of your investment after two years? Multiply
John Longwaite will receive $100,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"?
Barney Smith invests in a stock that will pay dividends of $3.00 at the end of the first year, $3.30 at the end of the second year, and $3.60 at the end of the third year. Also, he believes that at
Mr. Flint retired as president of the Color Tile Company but is currently on a consulting contract for $45,000 per year for the next 10 years.a. If Mr. Flint's opportunity cost (potential return) is
Cousin Bertha invested $100,000 10 years ago at 12 percent, compounded quarterly. How much has she accumulated?
Related to the discussion in problem 27, what is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent.
You need $23,956 at the end of nine years, and your only investment outlet is a 7 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial
Alex Bell has just retired from the telephone company. His total pension funds have an accumulated value of $200,000, and his life expectancy is 16 more years. His pension fund manager assumes he can
Dr. Oats, a nutrition professor, invests $80,000 in a piece of land that is expected to increase in value by 14 percent per year for the next five years. She will then take the proceeds and provide
Rusty Steele will receive the following payments at the end of the next three years: $4,000, $7,000, and $9,000. Then from the end of the fourth year through the end of the tenth year, he will
Kay Mart has purchased an annuity to begin payment at the end of 2013 (the date of the first payment). Assume it is now the beginning of 2011.The annuity is for $12,000 per year and is designed to
Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particular case, the amount owed will go up 8 percent per year for four years. The
If your aunt borrows $50,000 from the bank at 10 percent interest over the eight-year life of the loan, what equal annual payments must be made to discharge the loan, plus pay the bank its required
Jim Thorpe borrows $70,000 toward the purchase of a home at 12 percent interest. His mortgage is for 30 years.a. How much will his annual payments be? (Although home payments are usually on a monthly
Brittany (from Problem 46) is now 18 years old (five years have passed), and she wants to get married instead of going to college. Your parents have accumulated the necessary funds for her
In Problem 7, if you had to wait 12 years to get the $100,000, would your answer change? All other factors remain the same.
Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of $1,170. Ron is concerned that the bond might be overpriced based on
Further analysis of Problem 13.a. Find the present value of 2 percent × $1,000 (or $20) for 20 years at 10 percent. The $20 is assumed to be an annual payment.b. Add this value to $1,000.
Applied Software has $1,000 par value bonds outstanding at 12 percent interest.The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is:a. 11
Optional-for Problem 19, use the techniques in Appendix 10A to combine a trial-and-error approach with interpolation to find a more exact answer. You may choose to use a handheld calculator instead.
Grant Hillside Homes, Inc., has preferred stock outstanding that pays an annual dividend of $9.80. Its price is $110. What is the required rate of return (yield) on the preferred stock?
Laser Optics will pay a common stock dividend of $1.60 at the end of the year (D1). The required rate of return on common stock (Ke) is 13 percent. The firm has a constant growth rate (g) of 7
Sterling Corp. paid a dividend of $.80 last year. Over the next 12 months, the dividend is expected to grow at a rate of 10 percent, which is the constant growth rate for the firm (g). The new
Hunter Petroleum Corporation paid a $2 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the next three years. The required rate of return is 12 percent (this
For Problem 6 graph the relationship in a manner similar to the bottom half of Figure 10-2 on page 293. Also explain why the pattern of price change takes place.
O'Neal's Men's Shops, Inc., specializes in large-size clothing. Business has been good, as indicated by the six-year growth in earnings per share. The earnings have grown from $1.00 to $1.87.a. Use
Diaz Camera Company is considering two investments, both of which cost $10,000. The cash flows are as follows:a. Which of the two projects should be chosen based on the payback method?b. Which of the
Altman Hydraulic Corporation will invest $160,000 in a project that will produce the cash flow shown below. The cost of capital is 11 percent. Should the project be undertaken? Use the net present
Hamilton Control Systems will invest $90,000 in a temporary project that will generate the following cash inflows for the next three years.Year Cash Flow1
Cellular Labs will invest $150,000 in a project that will not begin to produce returns until after the third year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual
Propulsion Labs will acquire new equipment that falls under the five-year MACRS category. The cost is $200,000. If the equipment is purchased, the following earnings before depreciation and taxes
Wildcat Oil Company was set up to take large risks and is willing to take the greatest risk possible. Richmond Construction Company is more typical of the average corporation and is risk-averse.a.
Micro Systems is evaluating a $50,000 project with the following cash flows.Years Cash Flows1 ................................$ 9,0002 ................................12,0003
Payne Medical Labs is evaluating two new products to introduce into the marketplace. Product 1 (a new form of plaster cast) is relatively low in risk for this business and will carry a 10 percent
Northern Wind Power, a new age energy company, is considering the introduction of a product intended to use wind as an energy-producing device. The possible level of unit sales and the probability of
In Problem 1, if the one million additional shares can only be issued at $23 per share and the company can earn 6.0 percent on the proceeds, should the new issue be undertaken based on earnings per
In Problem 3, if the 1,500,000 additional shares can only be issued at $28 per share and the company can earn 10 percent on the proceeds, should the new issue be undertaken based on earnings per
Twelve years ago, the Archer Corporation borrowed $6,000,000. Since then, cumulative inflation has been 80 percent (a compound rate of approximately 5 percent per year).a. When the firm repays the
In Problem 18, what would be the aftertax cost of the call premium at the end of year 13 (in dollar value)?
Showing 17300 - 17400
of 19056
First
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
Last