Hunter Manufacturing Inc.’s December 31, 2009 balance sheet showed total common equity of $2,050,000 and 100,000 shares of stock outstanding. During 2010, Hunter had $250,000 of net income, and it paid out $100,000 as dividends. What was the book value…
1. Answer in Excel. NPV versus IRR: Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both Projects require an annual return of 14 percent.Year____Deep water Fishing____New Submarine Ride0_______-$950,000___________-$1,850,0001________ 370,000______________900,0002_______ _510,000______________ 800,0003________ 420,000______________750,000a.…
Miller Manufacturing, Inc. produces electronic components for television circuitry. Variable costs comprise 67% of a product’s selling price. The variable costs of producing a component include the following: Direct material $ 1.83/unitDirect labor $ 6.72/unitVariable factory overhead $ 0.86/unit Vicki…
The following is the sales budget for Trickle, Inc. for the first quarter of 2009. Jan – $235,000 Feb – $260,000 March – $295,000 Credit sales are collected as follows: 65% in month of sale 20% in month after sale…
Chatham Craft’s capital structure consists of $30 million of debt and $90 million of equity. The Company’s CFO has provided the following data: interest rate on debt is 8%; the Company’s tax bracket is 30%; the current stock dividend is…
Elasticity vs inelasticity Elasticity = (% Change in Quantity)/(% Change in Price) Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds…
Losses/gains on a futures contract You are long one CME Dec sterling future of contract size £62.500. Mon closing of the future was 1.8212 USD On Tues, the price rose to 1.8289; on Wed the price changed to 1.8275. Calculate…
I am not understanding how to obtain the OCF. I know that you have to add the depreciation expense and subtract the tax, but I am very confused. I know that you must divide the current assets by the current…
Alson Enterprises needs someone to supply it with 185,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $940,000 to install…
1) Find the discount and proceeds on a $3,260 face-value note for nine months if the discount rate is 9.5%. (use the bankers rule) The discount is $ ? (round to the nearest cent as needed)The proceeds are $ ?…
