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- Philips Inc is considering investing in a new project and to estimate the consumer demand they hired a marketing consulting team. The consulting team concluded that the project is viable if the discount rate is smaller than 20%. How would you classify the cost of this marketing study? Group of answer choices Cost of debt Erosion cost Opportunity cost Sunk cost Correct answer is not availableNderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin’s intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. 2020 2021 2022 Purchases by Philbin $ 8,000 $ 12,000 $ 15,000 Ending inventory on Philbin’s books 1,200 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson’s income and dividends. 2020 2021 2022 Anderson’s net income $ 70,000 $ 85,000 $ 94,000 Dividends paid by Anderson 10,000 10,000 15,000 Compute the equity in earnings of Anderson reported on Philbin’s books for 2020. Multiple Choice $63,000. $70,000. $62,700. $62,730. $63,270.The difference between TC and TVC falls with increase in output True / False
- Bamboo Shack has the following capital structure: Assets: 450,000 Debt: 105,000 Preferred Stock: 25,000 Common Stock: 320,000 The common stock is currently selling for $20 a share, pays a cash dividend of $0.85 per share, and is growing annually at 9 percent. The preferred stock pays a $11 cash dividend and currently sells for $96 a share. The debt pays interest of 10.5 percent annually, and the firm is in the 40 percent marginal tax bracket. c. What is the cost of common stock? d. What is the firm’s weighted-average cost of capital?Corporate tax is included while calculating profit True/FalseWhat are the possible revenue structure of a Bio-Brick (product) Company? Here are the example Revenue Structure of a ecommerce Revenue Structure · Low margin revenue streams from retail ecommerce sales and fulfillment · Advertising · Marketplace commission · Transaction fees
- The Charismatic Building Company Limited The Charismatic Building Company Limited is a small housing development firm which has the capacity to build up to houses per year. This is a small amount when compared to the output of some of the other firms in the industry. However, this is typical of firms of that size in the market. The houses are large and of high quality, built to a standard design and the buyers will pay $150,000 for such houses depending on the location. The company is run by two directors as well as an administrative person. It has a small suite of offices, a workshop and a storage yard. The fixed costs of the business amounts to $240,000. All the work on the building site is done by sub-contract labour and the average wage bill for a house is $56000. Materials are bought in as required and amount to $42000 per house of which 25% are imported from overseas suppliers. The company owns a bank of land on which it will build houses for the next two years, and it estimates…Recommendation to mitigate risk and loss in focal foreign operation for Toyota in Malaysia No plagrisum and detailed answerQno1 On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $30 million in new projects. The firm’s present market value capital structure, shown below, is considered to be optimal. Assume that there is no short-term debt. Debt $30,000,000 Common Equity 30,000,000 Total Capital $60,000,000 New bonds will have an 8 percent coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. Stockholders required rate of return is estimated to be 12 percent, consisting of a dividend yield of 4 percent and an expected constant growth rate of 8 percent. The marginal corporate tax rate is 40 percent. To maintain the present capital structure, how much of the new investment must be financed by common equity? Assume that there is sufficient cash flow such that Tysseland can maintain its target…
- Examples of cash flows from financing activities include;a. proceeds from the issue of shares and other equity instrumentsO b. proceeds from loans and bondsO c.Issue of debenturesO d.Repayments of amounts borrowed.e. payments to acquire non current assets Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000. Models Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite Selling Price (in dollars) 500 400 340 220 Material Cost /unit (in dollars) 220 190 150 90 Labor Cost/unit (in dollars) 90 65 65 50 Table 1 a) Develop a joint total revenue function for sales of the four different models. b) Develop an annual total cost function for manufacturing the four models. c) Develop the profit function for sales of the four models. d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models?In 2012–2015, the price of jet and diesel fuel used by air freight companies decreaseddramatically. As the CEO of FedEx, you have been presented with the following proposals to deal with the situation:a. Reduce shipping rates to reflect the expense reduction.b. Increase the number of deliveries offered per day in some markets.c. Make long-term contracts to buy jet fuel and diesel at a fixed price for the nexttwo years and set shipping rates to a level that will cover these costs.Evaluate these alternatives in the context of the decision-making model presented inthe text.