Q: Which of the following is NOT a required disclosure (if applicable), either by the seller or by the…
A: Ans: Confirmation of agency: Every real estate licensee is required to disclose his or her agency…
Q: LENLEN Company is considering on investing in new automated machinery. The machinery will be used…
A: Present value = (C1 * (1+r)-1)+ (C2 * (1+r)-2) + ...... +(Cn * (1+r)-n) Where r = Required rate of…
Q: What is the dividend growth rate using the constant growth model
A: Constant Growth Model: This model assists in the evaluation of share. Another name of constant…
Q: 1) The financial management decisions can be classified into four basic kinds, Investment Decisions,…
A: The Financial management decision are classified into 3 kinds. 1. Investment Decisions 2 Financing…
Q: Suppose the spot exchange rate for the Hungarian Forint is HUF 209/USD. The infiation rate in the US…
A: The following information has been provided in the question: Spot exchange rate for Hungarian…
Q: According to Modigliani and Miller, what happens to the cost of equity when the firm increases its…
A: Equity financing is the process of raising money from the investors and give ownership to the equity…
Q: Which of the following statements is true about broker markets? Group of answer choices Brokers…
A: In broker markets, brokers does the trade on behalf of their clients. Brokers do not have right to…
Q: 50,000 is invested for 6 months at 12% per annum. The value of the investment, to the nearest whole…
A: We know that the formula for compound interest is as follows. Compound Interest = P (1 + (r/n)/100)^…
Q: A company with EBIT of $5,000,000 is considering two financing alternatives. The first alternative…
A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, as per authoring…
Q: Explain the process of securitisation as carried out by banks and discuss its role in the 2008…
A: Securitization Securitization is the process of grouping or pooling together numerous financial…
Q: Question 1 Living Colour Co. has a project available with the following cash flows: Year Cash Flow…
A: Year Cash flow 0 -$34,430 1 $8,090 2 $9,730 3 $13,840 4 $15,770 5 $10,580 Required…
Q: (b) What is the time value of an option? Why does an option's time value decay as the option…
A: The time value of an option is the excess of premium over the intrinsic value of an option. Option's…
Q: The Nunal Corporation finds that it is necessary to determine its marginal cost of capital. Nunal’s…
A: The Weighted Average Cost of Capital (WACC) refers to the financial ratio that calculates the…
Q: When establishing their optimal capital structure, firms should strive to minimize the amount of…
A: The capital structure is said to be optimum capital structure when the firm has selected such a…
Q: Wallace Driving School's 2020 balance sheet showed net fixed assets of $2.3 million, and the 2021…
A: Answer - Calculation of Net capital spending = Net fixed assets (2021) - Net fixed assets (2020)…
Q: Suppose that a new government is elected and it changes the law applying to firms to: • Allow…
A: The trade-off theory of capital structure proposes that a corporation balances costs and advantages…
Q: A government bond issued in Italy has a coupon rate of 5 percent, a face value of 100 euros, and…
A: Coupon rate = 0.05 Annual coupon amount (c) = 5 (i.e. 100 * 0.05) Yield to maturity (y) = 0.035…
Q: The asset has FC of 10 000 000 and is expected to last in 10 years with the salvage of 800 000.…
A: Depreciation as per Sum of years Depreciation First years = Sum of digits * ( Cost of asset -…
Q: what is the difference between the e
A: The exchange rate is rate at which one currency is exchanged with currency of other country and some…
Q: Choose the correct answer. 4. Financial goals are classified as to duration as follows, except a.…
A: Financial Industry Regulatory Authority (FINRA) defines the three types of duration for financial…
Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…
A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)
Q: Mang Moises needed a refrigerator for his canteen. The refrigerator, which costs P:26,000, may be…
A: In financing, amortization is the amount of loan, in which principal loan paid according to the…
Q: 1) Finance function is limited to supply of funds to the requirements of the organisation. True
A: 1)Financial management includes the Finance Function. The activity of controlling and planning…
Q: The maintenance on a machine is expected to be ₱8984 for the second year and an additional ₱1,750…
A: Annual cost for 6 years = 1,750 Total Cost for the second year = 10,734 (8,984 + 1,750) Interest…
Q: Durr Ham plc currently has 80 million shares outstanding priced at £2 each. A dividend of 10p has…
A: Shares outstanding = 80,000,000 Stock price = £2 Dividend = 0.10 Growth rate = 5% Number of…
Q: protect consumers' financial information?
A: Financial information refers to data that can be measured in monetary terms and stored in the…
Q: In identifying alternative courses of action, one should consider the following, except a. continue…
A: The answer is option (d) change the current situation. In identifying an alternative course of…
Q: percent. Compute the firm's weighted average cost of capital based on the following information.
A: WACC: WACC also known as the company's average cost of capital. It is the sum of individual cost of…
Q: Your boss asks you to review an option to lease an equipment storage facility that the firm needs.…
A: Present value of the annuity due Annuity due is a series of equal payment at equal interval,…
Q: 1. (a) Describe the defining features of call and put options and explain intuitively using an…
A: Derivatives: Derivatives are a class of securities that derive their values based on another asset…
Q: What steps can be taken to ensure that a management team makes decisions for the better of the…
A: In finance managers are agents who are appointed by the owners of a company. The stakeholders are…
Q: If the corporate tax rate is greater than zero, how would taxes affect the firm's cost of capital?
A: Solution:- Cost of capital means the minimum rate of return required by the investors of a firm ie.…
Q: A bank applies a semi-annually capitalized nominal rate of 11.8% for an investment. Calculate…
A: The effective rate for any period refers to the actual proportionate cost which will be paid for…
Q: LExplain what happens to the bond price and interest rate and why. i) i1) ii1) Expected inflation…
A: A bond's price is the present discounted value of its future cash flow. It denotes the total of the…
Q: On April 1, 2022, Pink Company signed an agreement to operate as a franchisee for a franchise fee of…
A: Data given: Initial payment =P 2,000,000 Balance payable in six (6) semi annual payment = P…
Q: a) Leases of private land b) Transmissions of private land c) Transfers of private land d) Charges…
A: A lease is an agreement between a lessor and a lessee. The lessor leases his land to the lessee for…
Q: Consider an annual 2 year coupon bond paying a coupon rate of 7%. If it is 1000 par and the YTM= .06…
A: Face Value $ 1,000.00 Coupon Rate 7% YTM 6% Time Period 2 Part D Par…
Q: Professor Wendy Smith has been offered the following opportunity A law firm would like to retain her…
A: Upfront Payment $ 49,000.00 Number Hours worked in Month 8 Per Month Rate $…
Q: Vhat is the marketspace?
A: Marketspace is an virtual market that allows third parties to sell their merchandise. Technology…
Q: What annuity is required over 10 yrs. to equate a future amount of P 15,000. assume interest of 5…
A: Given, Future Value of annuity = 15,000 Need to find annual Installments to be made over 10 years
Q: National Corporation finances its projects with 40 percent debt, 10 percent preferred stock, and 50…
A: Yield to maturity = 0.084 Cost of preferred stock = 0.09 Cost of common stock = ? Risk free rate =…
Q: Discuss risks and returns characteristics of investing in ordinary shares and corporate bonds from…
A: A bond is a financial instrument that represents a loan made by an investor to a borrower (usually a…
Q: Company 2019 Gross $4,250,000 Revenue |Company 2019 Gross $1,628,000 Profit Annual 58% Retention…
A: Customer lifetime Value = M(1+d/1+d-r) where,M=Margind= discount rater = retention ratio Customer…
Q: orth 1% compounded semi-annually. 2. Don Solomon wants to set up a scholarship program with his alma…
A: Present value can be found the given period and interest rate and given period of compounding of…
Q: The management of ProdPharm.inc has decided to increase the production capacity of its factory by…
A: The real interest rate is the actual rate that an investment earns taking into account the frequency…
Q: If we have an inflation ratio (f) of 5.0% and a market interest (i) of 1.0%, how much is the…
A: A market interest rate is also called market nominal rate. This rate does not take account of…
Q: HEJO company has the current stock price of $20 today. Use a 1 step binomial tree to estimate the…
A: A binomial options tree method is a method of finding the option price based on the expected prices…
Q: The index model has been estimated for stock A with the following results: RA = 0.01 + 1.2RM + eA.…
A: Standard deviation is referred to as the measure of the dispersion of a dataset relative to its mean…
Q: The market value of Lays Corporation's equity is 50 million $ and the market value of its debt is 27…
A: Cost of equity = Risk free rate + (Market rate of return - risk free rate) * Beta Weight of equity…
Q: What is the present value of a 5-year annuity of $4,900 with the first payment to be received 3…
A: Annual payment = $4900 Interest rate = 7% Number of annual payments = 5
Step by step
Solved in 2 steps
- Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are 3,000, and expected number of inspections is 600. The best activity rate for inspection is as follows: a. 40 per inspection b. 40 per hour c. 200 per inspection d. 200 per hourThe expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
- Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
- Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursSuppose 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.
- Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per machine hour (i.e., every hour the machinery is run, electrical power cost goes up by 1.15).
