A football coach has just signed a five-year contract, 2.5-million dollar contract with a college. He will
Question:
A football coach has just signed a five-year contract, 2.5-million dollar contract with a college. He will get a $300,000 signing bonus. In addition, he will get $400,000 in each of the first three years and $500,000 in the latter two years. Assuming the current interest rate is 5%, what is the present value of the coach's contract?
10. XYZ Company has assets that are traditionally 22% of sales, and its liabilities traditionally are 14% of sales. Sales for this year are $275,000 and sales for next year are projected to be $400,000 with a profit margin of 10%. The owners take a 90% payout. Using the percentage of sales method, XYZ will need _____ of additional financing.
11. Vandelay Industries has the following information: The average widget has a sales price of $25; it takes 30 minutes to assemble one widget; and production labor is paid $10 per hour. Operating expenses are as follows: salaries, $2,700 per week; insurance, $1,200 per quarter; rent, $3,500 per month; and utilities, $1,250 per month. What is Vandelay's monthly fixed costs?