Question: Please answer both questions. I need help answering them. Below is the statements provided for the problems. Use the Westfield Corporation case to answer questions

 Please answer both questions. I need help answering them. Below is

Please answer both questions. I need help answering them. Below is the statements provided for the problems.

the statements provided for the problems. Use the Westfield Corporation case toanswer questions 1 - 13. 9. Why is Westfield's weighted average costof capital on total invested capital increasing from year 6 to year7 to year 8 ? The company is being financed with moredebt The company's business risks are increasing as sales revenue grows Thecapital structure is changing The company is being financed with more equityQuestion 10 0.5pt Use the Westfield Corporation case to answer questions 1- 13. 10. If Westfield wanted to expand its production capacity by

Use the Westfield Corporation case to answer questions 1 - 13. 9. Why is Westfield's weighted average cost of capital on total invested capital increasing from year 6 to year 7 to year 8 ? The company is being financed with more debt The company's business risks are increasing as sales revenue grows The capital structure is changing The company is being financed with more equity Question 10 0.5pt Use the Westfield Corporation case to answer questions 1 - 13. 10. If Westfield wanted to expand its production capacity by adding an addition and equipment to its current plant at a cost of $1,000,000 and it also wanted to lower its weighted average cost of capital, how would it want to finance the plant expansion? With a mix of debt and equity With debt With mostly equity because the company's capital structure cannot efficiently handle more debt With equity Westfield Corporation Westfield Corporation Sales Forecast Average Price Projection Year 8 average price Target Market(s) Adjustments Target market(s) Product Adjustments New templates Extensions \& options to current templates New product development Price Adjustments Terms of sale Distribution Adjustments Distribution expansion - California \& New York Distribution expansion - Mexico Promotion Adjustments Advertising Sales promotion Sales rep commission structure Training sales reps Travel Website \& IT Competitive Economic Political, legal, regulatory Social/Cultural Technological Average Price Projection Year 9 24.15 0 0.0898 0.0079 0.085 0.024 0 0.01 0.02 0.01 Environmental Factor Adjustments 0 0.06 0.048 0.036 0 $24.42 \begin{tabular}{lrrr} & Year 9 & Weight & \multicolumn{1}{c}{Year9Weighted} \\ Sales Volume Projection & 1,263,464 & 50.00% & 631,732 \\ Volume Forecast by \# of Sales Reps - Schedule 1 & 1,294,832 & 40.00% & 517,933 \\ Volume Forecast by Areas of Distribution - Schedule 2 & 1,100,167 & 10.00% & 110,017 \\ Volume Forecast by \# of Product Templates - Schedule 3 & & & 1,259,682 \end{tabular} Schedule 1 - Volume Forecast by \# of Sales Reps Number of sales reps Volume Average volume per sales rep Weight Weighted average - Volume per Sales Rep Projected sales volume \begin{tabular}{rrrr} \multicolumn{1}{l}{ Year 6 } & \multicolumn{1}{c}{ Year 7 } & \multicolumn{1}{c}{ Year 8 } & \multicolumn{1}{c}{ Year 9 } \\ 10 & 12 & 14 & 20 \\ 800,000 & 890,000 & 1,010,000 & \\ 80,000 & 74,167 & 72,143 & \\ 20% & 30% & 50% & \\ 16,000 & 22,250 & 36,071 & 74,321 \\ & & & 1,263,464 \end{tabular} Schedule 2 - Volume Forecast by Areas of Distribution Arizona California Florida Georgia Illinois Indiana Michigan New York Ohio Texas Mexico Totals \begin{tabular}{rrrrr} Year 6 & Year 7 & Year 8 & \multicolumn{2}{c}{ Yorecast } \\ & & 40,000 & 74,321 & \# Sales Reps \\ 160,000 & 170,000 & 180,000 & 200,668 & 1 \\ 50,000 & 80,000 & 105,000 & 105,000 & 3 \\ 155,000 & 160,000 & 170,000 & 170,000 & 1 \\ 80,000 & 85,000 & 80,000 & 80,000 & 2 \\ 90,000 & 95,000 & 100,000 & 100,000 & 1 \\ & & & 111,482 & 1 \\ 115,000 & 120,000 & 115,000 & 118,914 & 3 \\ 150,000 & 180,000 & 220,000 & 222,964 & 2 \\ & & & & 3 \\ 800,000 & 890,000 & 1.010,000 & 1,294,832 & 20 \end{tabular} Schedule 3 - Volume Forecast by \# of Product Templates \# of product templates Volume Yearly average sales volume per template Average sales volume per template Projected sales volume \begin{tabular}{lrrrr} Schedule 3 & \multicolumn{3}{c}{ Proforma } \\ Regular Time Direct Labor (DL) & Year 6 & Year 7 & Year 8 & Year 9 \\ Hours worked in year & 2,000 & 2,000 & 2,000 & 2,000 \\ Average wage rate & $14.00 & $14.35 & $14.65 & $0 \\ Average wages per DL employee & $28,000 & $28,700 & $29,300 & $0 \\ Plus 28\% benefits & $7,840 & $8,036 & $37,504 & 87 \\ Total cost per DL employee & $35,840 & $36,736 & 8.64 & 108.50 \\ Number of DL employees & 66 & 2.42 & 174,000 & 3.29 \\ Number of shifts & 2.00 & 160,000 & $3,262,848 & $0 \end{tabular} Schedule 8 - General \& Administrative Expenses Proforma

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