For this equation-The school budget will pay 20% of the total cost to build the music studio. The club must raise the remaining amount of money. How does the club need to raise? “Image will be Shown below”
Q: Are these defensive or aggressive in nature Weight on PG Weight on F Portfolio Return Portfolio Bet...
A: Generally, aggressive portfolios have betas greater than 1 while defensive portfolios have betas les...
Q: IL PROBLEM SOLVING 1. An equipment costing P250. 000 has an estimated life of 15 years with a bok va...
A: Declining balance method of depreciation It is one of the depreciation method to compute annual depr...
Q: The rabbit population at the city park increases by 9% per year. If there are intially 276 rabbits i...
A: Initial rabbit population is 276 rabbits Growth rate in population is 9% per year To Find: Model fo...
Q: Connie wants to have an annuity payment of $2,250 at the END of every three months. How much should ...
A: Present value of annuities will give what is cash amount to be paid today.
Q: Suppose the demand functions for two products are q1 = f(p1, p2) and q2 = g(p1, p2) where p1, p2, q1...
A: Given Demand function for q1 = f(p1, p2) Demand function for q2= g(p1, p2) where (p1, p2, q1, q2) a...
Q: Share Price can be determined by the cash flows and risk. Assume other things held constant, increas...
A: Stock Prices are moved based on the various factors affecting the stock such as discounting factors ...
Q: Statement 1 - Majority of the American money markets are over- the- counter markets. Statement 2 - S...
A: Trading takes place electronically on over-the-counter marketplaces, which do not have physical faci...
Q: A city is evaluating the installation of a garbage incinerator on the outskirts of town. The cost of...
A: Note: $25,000 environmental study cost, which is irrelevant for decision making. So, this cost shoul...
Q: Bond valuation and yield to maturity Personal Finance Problem Mark Goldsmith's broker has shown him ...
A: Bond value: A bond's value is calculated by discounting the bond's predicted cash flows to the prese...
Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18 yea...
A: Given P=$37,000 r= 7.8% n=1 t=18 years
Q: Solve the quations: Tony and his team identified some risks during the first month of the Recreation...
A: In financial terms, risk is defined as the possibility that the actual gains from an outcome or inve...
Q: An initial investment amount P, an annual interest rate r, and a time t are given. Find the future v...
A: Future value is the compounded value of an initial sum of money. It includes the initial amount as w...
Q: Peter Chan aged 35 is married and has 1 children. His wife, Susan aged 30, is a homemaker but attend...
A: In the form of a policy, insurance is a contract in which an individual or entity receives financial...
Q: A bank sets the loan rate on a prospective loan at 14%. This consists of a 12% base rate and a 2% cr...
A: A loan is a financial aid which is given by one party to another party. This transaction can take pl...
Q: which of the below does not qualify a bond ? a. Time to maturity b. Par Value c. Coupon rate d. Yie...
A: Bonds are a sort of financial instrument used by governments and enterprises to raise funding from t...
Q: It is the difference between the present value and the worth of money at some time in the future.
A: Money has the power to earnt interest. A sum of money that you put in your bank's savings account wi...
Q: All are true about the corporate stocks except ... a. Represents ownership interest in a corporation...
A: Corporate stocks are a part/ fraction of ownership in a corporation .
Q: 8. An education fund will offer a P40, 000 annual scholarship for the first five years, a P60, 000 s...
A: Present value (PV) of all the cash flows is the sum of the money deposited now. It is an example of ...
Q: 13. Calculating Profitability Index following set of cash flows if the relevant discount rate is 10 ...
A: Profitability Index = (NPV + Initial Investment ) / Initial Investment NPV can be calculated by ...
Q: 7. Under the Equal Credit Opportunity Act (ECOA), it is unlawful to discriminate against an applican...
A: Equal Credit Opportunity Act The ECOA law is only applicable in the United States, ECOA law is enfor...
Q: Lisa has a $37,500 student loan at 3.15% compounded quarterly amortized over 16 years with payments ...
A: The present value of loan is equal to the sum of the present values of all future monthly installmen...
Q: Armed with this information, compute: The minimum required return by Cross-Ocean’s debtholders The ...
A: Minimum Required Return: It represents the expected required return to the investors for investing ...
Q: How would an increase in the interest rate or a decrease in the number of periods until the payment ...
A: Interest rate is defined as an amount of an interest due per period as the proportion of amount, whi...
Q: A bond has a $13,000 face value, a 6-year maturity, and a 3.05% coupon. Find the total of the intere...
A: Face value= $13000 Number of interest payments = 6 Coupon rate = 3.05%
Q: Find the present value of an annuity of P30,000 payable annually for 10 years, with the first paymen...
A: An annuity is a contract where, in exchange for a lump sum amount, a fixed amount is paid for a set ...
Q: A few years ago, Big Rock invested in a number of bonds with various maturity dates. Several of thes...
A: A bond is a fixed-income instrument that reflects a loan from an investor to a borrower (usually cor...
Q: Select all the options that would be part of the initial investment of a project consisting in estab...
A: The initial investment will consist of all one-time expenses and payments that are incurred in makin...
Q: 11 Fun with IRR. Suppose you have just graduated from college and are deciding on a career. Your fou...
A: "Hi, Thanks for the Question. Since you posted multiple sub parts question, we will answer first thr...
Q: 5 Variable Growth A fast growing firm recently paid a dividend of $0.50 per share. The dividend is e...
A: The value of stock will the present value of all its dividend and the present value of terminal valu...
Q: Suppose Anastasia has a consol bond (a perpetuity bond) that pays an annual coupon of $200 per year ...
A: Here, Annual Coupon = $200 YTM = 10% Increase in YTM = 12% To Find: Capital gain =?
Q: Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon h...
A: Par Value = $1,000 Coupon Interest Rate = 7% Years to Maturity = 9 Current Value = $1,140
Q: The number of stock exchange/s in the Philippines. Zero O One O Two Five
A: Stock exchange is a market where stock are brought and sold.
Q: The sum of P15, 000.00, deposited in an account earning 4% per annum compounded quarterly, will beco...
A: Deposit amount (D) = P 15000 r = 4% per annum = 1% per quarter
Q: S&S Air Goes International Mark Sexton and Todd Story, the owners of S&S Air, have been in discussio...
A: "Since you have asked multiple question ,we will be solving first question for you,if you want any s...
Q: Tanysha plans to invest $15,000 at the beginning of each year for the next 10 years. If her invested...
A: An annuity is defined as the series of payment made each year for a definite period of time. In annu...
Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple inte...
A: We need to use simple interest formula to calculate the simple interest. The formula is Simple inter...
Q: A firm borrows 2000 for 6 years at 8%. at the end of 6 years, it renews the loan for the amount due ...
A: A loan is an amount borrowed on which a certain interest is to be paid. The lumpsum due is computed ...
Q: A nominal rate of interest of 7% compounded continuously is equivalent to an effective annual rate o...
A: Interest rate (r) = 7% Mathematics constant (e) = 2.7182818284590452353602874713527
Q: Compute the present value of each scenario. Show the complete solution. 1. Your mother is expecting ...
A: The present value is calculated as per the concept of time value of money. Here, the future value is...
Q: les Galactic Industries is choosing a steel production process. Their first option "Alpha" has a fir...
A: The procedure through which a company evaluates possible big investments is known as capital budgeti...
Q: Check my work foreseeable future. Company B pays corporate taxes at investment. Suppose the opportun...
A: NPV: Net Present Value (NVP) is one of the conducts to evaluate an investment to see if it's worth...
Q: Sarafina has bonds in her portfolio. She wants to know about her position in the bond market. Specif...
A: Yield to maturity (YTM) is the total return expected on a bond if it is held until it matures. It is...
Q: A $290,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 20 year ...
A: Here,
Q: or the hat would have been made to sete the bils For maks your answer) shoud be rounded to the neore...
A: Companies gives credit to customers to increase the sales and also give discounts to customers to pa...
Q: Why is it important to compare standard and actual food and beverage costs?
A: The capacity to assess genuine costs and margins is essential for every organization, particularly t...
Q: hat type of financial challenges is most important for Chief Financial Officers (CFOs) to address im...
A: CFOs of different companies are regularly grappling with some or the other types of financial challe...
Q: 1. if a small bank lends to a customer who wants a mortgage that is too large for the small bank to ...
A: A loan is a financial transaction in which one or more individuals, organisations, or other entities...
Q: Yawi has a medium-size trucking company that distributes appliances within Metro Manila. Fuel consum...
A: The discounted cash inflows or outflows of future payments or receipts are known as the equivalent p...
Q: Note: For this question, the inflation rates are actual inflation levels (so a 6-month inflation rat...
A: Inflation can be defined as the general fall in purchasing value of money due to increase in price l...
Q: Charmaine has just purchased an apartment at a price of $10 million. She made a down- payment of $4 ...
A: Loan amount (L) = $6 million n = 15 years = 180 months r = 3% per annum = 0.25% per month Let M = Mo...
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
- Chris’s House of Music wants to purchase TransposeIt, a system that transposes any song in its database and prints sheet music in the requested key. This system allows singers to obtain sheet music in keys that are suitable to their vocal range. The software for the system costs $10,600; a new computer and a laser printer costing $4,100 will be needed to run the system. Chris estimates that the system will generate additional annual sales revenue of $23,600 and that annual cash expenditures will be $18,789. Chris uses straight-line depreciation. The software, computer, and printer will have a useful life of 5 years. The system will have a $200 salvage value at the end of its 5-year useful life. (a) Calculate the annual net operating income generated by the system.The Tech Student Government Association (SGA) has several campus projects it undertakes each year and its primary source of funding to support these projects is a T-shirt sale in the fall for what is known as the “orange effect” football game (with orange being one of Tech’s colors). The club’s publicized (media) objective is for everyone in the stadium to wear orange. The club’s financial goal is to make a profit of $150,000, but in order to have a significant number of fans buy the shirts and wear them to the game, it doesn’t want to price the T-shirts much more than $6. The stadium seats 62,000 fans, and the SGA would like to sell approximately 45,000 orange T-shirts to achieve the desired orange effect, which it’s relatively confident it can do. It will cost$100,000to purchase, silk-screen print, and ship this many T-shirts. The SGA sells the shirts through three sources: online, the two Tech bookstores, and a local independent bookstore. While the bookstores don’t expect to share…Assume you wrote up a proposal requesting $5000 for charity. The money would be used to buy food that volunteers (employees from the company) would distribute to the homeless on Saturday. The proposal is approved and you receive the money. However, the CEO comes to you and asks, "What will be the return on the investment?" How would you reply?
- George's House of Music wants to purchase Transposelt, a system that transposes any song in its database and prints sheetmusic in the requested key. This system allows singers to obtain sheet music in keys that are suitable to their vocal range. Thesoftware for the system costs $ 11,900; a new computer and a laser printer costing $ 3,100 will be needed to run the system. George estimates that the system will generate additional annual sales revenue of $ 23,300 and that annual cash expenditurewill be $ 19,295. George uses straight-line depreciation. The software, computer, and printer will have a useful life of 5 years.The system will have a $ 225 salvage value at the end of its 5-year useful life. (a)Calculate the annual net operating income generated by the system. (b).Calculate the accounting rate of return of the system.Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech’s football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor’s fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She estimates that each hot dog she sells will cost her $0.35. She has talked to friends at other universities who sell hot dogs at games. Based on their information and the athletic department’s forecast that each game will sell out, she anticipates that she will sell approximately 2,000 hot dogs during each game. What price should she charge for a hot dog in order to break even?The town of Arrieta has decided to have an sculptor create a statue of their town founder, Arrieta Daniels. They also plan to build a small garden around the statue in the town square. The total cost for the statue and garden construction will be $65000.Replanting flowers and other garden maintenance is budgeted at $600 per year. The statue and garden are expected to last forever but the statue will need repairs and cleaning every 4 years at an estimated cost of $2000.If Arrieta has an MARR of 7.5% per annum, what is the present worth of costs for the project?
- Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country clubs. It has two options for the event: OPTION 1: Crestview Country Cluba. Fixed rental cost of $1,000b. $12 per person for food OPTION 2: Tallgrass Country Cluba. Fixed rental cost of $3,000b. A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local freight businesssupporters will donate any other items required for the event. a) Which option provides the least amount of risk? b) Which option provides the greatest operating income if 600 people attend? c) Which option provides the greatest degree of operating leverage if 600 people attend? d) Which option would you choose? Why?Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country It has two options for the event: OPTION 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food OPTION 2: Tallgrass Country Club Fixed rental cost of $3,000 A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $1,200. Tickets are expected to be $30 per person. Local freight business supporters will donate any other items required for the event. Which option provides the least amount of risk? Which option provides the greatest operating income if 600 people attend? Which option provides the greatest degree of operating leverage if 600 people attend? Which option would you choose? Why?Olivia and Yixing are volunteering at a cat rescue shelter. The shelter supervisor asks them to clean out kennels and haul bags of cat food from the donation area into storage. It takes Olivia 6 minutes to clean out a kennel and 6 minutes to move a bag of food. It takes Yixing 10 minutes to clean out a kennel and 12 minutes to move a bag of food. For the following questions, round each answer to the nearest tenth. d. Yixing’s opportunity cost of cleaning a kennel: bags of food moved. e. Yixing’s opportunity cost of moving one bag of food: kennels cleaned. f. Yixing says it does not matter which task each of them performs, because Olivia is faster at both tasks. Is she correct? No, Yixing should clean out the kennels, and Olivia should move the food bags. No, Olivia should clean out the kennels, and Yixing should move the food bags. Yes, Olivia should do both tasks because she is faster at both. No, Yixing should do both tasks so that she…
- Everyone was affected by the economic impacts of COVID-19 including nonprofits. Donations plummeted and volunteers dried up but the community's need for help only grew. The table below provides information for the Transformation Station, a nonprofit that focuses on people experiencing homelessness for the first time. Transformation Station has determined they need a bigger storage facility. They first need to perform a sensitivity analysis to determine whether to build a larger storage facility. Part 1: Perform a sensitivity analysis (aka net present value) for the three options above. Show work Part 2: Remember that we have very little control over whether the Conservative, Most Likely, or Optimistic Estimate is realized. In other words, this analysis is similar to saying, "Well, we don't know exactly how much it will cost or how much you will save. However, we have done some analysis - based on the current economic environment - and we believe it will be somewhere between the…Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment; this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $90,000 and is expected to generate an additional $35,000 in cash flows for five years. A bank will make a $90,000 loan to the company at a 10% interest rate for this equipment’s purchase. Use the following table to determine the break-even time for this equipment. (Round the present value of cash flows to the nearest dollar.)You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k event. The event is staged entirely by volunteers and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money, but to prompt awareness. As the chair, you set a financial goal to break even on the one and only cost of the event, a fitness bag with the community seal and the event motto, “I AM ON THE RIGHT TRACK!” The cost of the bags, which must be ordered in batches of 100, are: Bags/ Participants Fixed Cost Variable Cost Total Cost Marginal Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 [a] 200 $1,700 $1,200 $2,900 [b] 300 $1,700 $2,700 $4,400 [c] 400 $1,700 $5,200 $6,900 [d] 500 $1,700 $9,000 $10,700 [e] 600 $1,700 $15,000 $16,700 [f] 700 $1,700 $23,800 $25,500…