A business has the capacity to manufacture 730 electronic components per annum that it sells for $500 each. The variable costs are $260 per component and the fixed costs are $102.000 per year
Q: Calculate the missing information for the loan. Round percents to the nearest tenth and days to the…
A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…
Q: e price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6.…
A: Put option give opportunity to sell the stock on the expiration of period but there is no obligation…
Q: Hakeem, one of your firm’s clients, is a shareholder in Cedar Corporation. Cedar Corporation has an…
A: Corporate Income Tax is a tax that a corporation-type business is required to pay. It is mandated by…
Q: T money is 12% compounded quarterly, calculate the present value deferred annuity of 185 every three…
A: Present value of annuities is the equivalent value today based on interest rate and period of…
Q: alculate the internal rate of return for
A: Internal rate of return is the discount rate project break even financially that means present value…
Q: K-Way Limited (Ltd), a softdrink manufacturer has the option to invest in machinery for projects A…
A: Payback The method used in capital budgeting to help investors calculate the time it will take for…
Q: Daily Enterprises is purchasing a $9.9 million machine. It will cost $46,000 to transport and…
A: Through the funding from creditors and investors, the company is regulating. Creditors assist the…
Q: Suppose you observe the following spot and forward exchange rates between the U.S. dollar ($) and…
A: Given: U.S. dollar/Canadian dollar = 0.8842 U.S. dollar/Canadian dollar = 0.9001 US interest rate =…
Q: How many years will it take for an initial investment of $50,000 to grow to $75,000? Assume a rate…
A: Here, Particulars Values Initial investment (PV) $ 50,000.00 Future value (FV) $ 75,000.00…
Q: What is the difference between effective rate and stated rate?
A: We have to identify the differences between effective rate and stated rate.
Q: A$18,000, 9.1% bond redeemable at par is purchased 6.5 years before maturity to yield 8.9%…
A: Given: Face value = $18,000 Coupon rate = 9.1% Years = 6.5 Yield to maturity = 8.9%
Q: An annuity makes 20 annual payments of $3,000 with the first payment coming today. What is the…
A: Here, Particulars Values Annual payment (PMT) $ 3,000.00 Interest rate (RATE) 8.00% Time…
Q: Covered Interest Rate Parity holds much better than Purchasing Power Parity". explaining both…
A: Financial theory refers to the measurement of the mathematical and speculation field that is used…
Q: Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a…
A: The question makes an attempt to link the impact of interest rate on the affordability of the house.…
Q: Information: The basic monthly salary of Freddy is R10 000. She is entitled to an annual bonus of R9…
A: The employer provides paid vacation leaves to the employees. It means the employers pay even the…
Q: Consider the following income statement: Sales $909,407 Costs…
A: Operating cash flow (OCF) is a measurement of how much money a company generates through regular…
Q: A credit card company charges an interest rate of 1.13% per quarter on the unpaid balance of all…
A:
Q: orch Industries can issue perpetual preferred stock at a price of $73.50 a share. The stock would…
A: Preferred stock is a component of a company’s share capital. They have features and characteristics…
Q: Complete the following using compound future value. (Use the Table provided.) Note: Do not round…
A: The time period is 3 years Amount of principal is $17,100 The interest rate is 4% Total number of…
Q: Doug's Custom Construction Company is considering three new projects, each requiring an equipment…
A: Here, To Find: Part A. Payback period =? Part B. Net present value =?
Q: is 10% an
A: is recovered from all the future cash inflows, In the case of simple payback we don't consider the…
Q: Given this information: a) Compute the NPV of the investment in the firm's cost of capital is 10%…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: 1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The…
A: Under the cost approach to property valuation, the value of property is estimated by adding the…
Q: ompute the number of years (t) if future value (FV) = $10174, present value (FV) = $1498, and…
A: Future value of the amount is the amount that being deposit today and amount of interest accumulated…
Q: Bowman Corp pays a constant $13 dividend on its stocks. The company will maintain this dividend for…
A: The constant dividend amount is $13 The time period of dividends is 8 years The required return is…
Q: Find the nominal annual rate of interest compounded monthly that is equivalent to 9 8% compounded…
A: The term "nominal interest rate" refers to the interest rate before accounting for inflation. The…
Q: Net Sales = $88,122 Total Assets = $189,100 Calculate Asset Turnover ( Round to nearest hundredth…
A: When actual or intangible goods, services, or assets are traded for money and include two or more…
Q: You have been assigned the task of evaluating two mutually exclusive projects with the following…
A:
Q: How can consumers benefit from digital financial services?
A: Digital financial services - the whole gamut of financial services that are accessed and delivered…
Q: You purchased a machine for $1.09 million three years ago and have been applying straight-line…
A: Purchase cost = $1,090,000 Life = 7 Years Used period = 3 years Tax rate = 0.22 Sale value =…
Q: lynn ally, owner of a local subway shop, loaned $57,000 to pete hall to help him open a subway…
A: The amount of the Loan, "PV" is $57,000 The time period is 10 years The interest rate is 6%…
Q: For XYZ Corporation, the book value per share at the end of .1, and earnings per share for 2022 (at…
A: Residual earnings are the earnings available after doing payment for the cost of capital that amount…
Q: ou invest $5000 at time t=0 and an additional $2000 at time t=1/2. At time t=1/2 you have $5300 in…
A: Time weighted rate of return Time weighted rate of return is calculated as shown below. Time…
Q: An investor wants to select one of the six mutual funds for the coming year. Data showing the…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Suppose that SIU's beta is 1.5. If the expected return on the market portfolio is 12% and the…
A:
Q: If your portfolio includes 35 percent of X, 40 percent of Y and 25 percent of Z, answer the…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: . The cash flow of a long stock and long put strategy is equal to the cash flow from a long call…
A: Long call option gives the you right to buy on expiration but no obligations to do that and long put…
Q: HBM, Inc has the following capital structure: Assets $550,000 Debt Preferred stock Common stock…
A: WACC refers to the weighted average cost of capital. It takes into consideration the cost of all the…
Q: An n-year bond with annual coupons has the following characteristics: . The redemption value at…
A: We have the select characteristics of the bond known. We have to find the missing value of n, the…
Q: n briefly any five factors that the company should consider when deciding of the mix debt and equity…
A: There are basically two types of the sources of finances for the companies one is debt and other is…
Q: Pulau Penang, Malaysia. Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one…
A: Working Note #1 Spot rate in 1 year=RM 3.1250*(1+2.75%)(1+1.25%) Spot rate in 1 year=RM…
Q: A $25,000 bond redeemable at par on November 08, 2015 is purchased on February 03, 2006. Interest is…
A: The cash price will reflect the present value of all the coupon payments and principal too. Given…
Q: You purchased a commercial office building for $2,200,000 one year ago. The appraisal noted the…
A: As per the given information: Office building purchased - $2,200,000Value of the land -…
Q: Unearned Interest by the Actuarial Method Each loan was paid in full before its due date. (a) Obtain…
A: Early loan repayment is a common feature where the borrower pays off the debt before they are…
Q: at is the correct way to determine the value of a long forward position at expiration? The value is…
A: Foward contracts are that are settled in the future times and they are settled on the margins and…
Q: a. The future value of $15,000 invested at 5 percent for 9 years. Future value b. The future value…
A: a. Compute the future value of investment, using the equation as shown below: Future value=Present…
Q: NoNuns Cos. has a 20 percent tax rate and has $304.00 million in assets, currently financed entirely…
A: The percentage of total earnings that a firm must distribute to each issued share is known as…
Q: lain the relationship between return on equity (ROE), return on asset (ROA), and leverage effect.…
A: Return on equity and return on assets shows how much is the profit earned by the company and are…
Q: Problem # 2 (3/10): A cash flow sequence has a disbursement of $15,000 today, followed by three…
A: In a non simple, unconventional series of cash flows, we have to find the approximate-ERR.
Q: 2.0%), and real GD e federal funds rater
A: D. 25% Taylor rule suggests that the federal funds rate should be set at 9.25% Taylor's rule…
Step by step
Solved in 4 steps with 6 images
- Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
- Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000