$7,200,000 at 10% a) What would be wcC's EPS (1) under the old production process, (2) under the new process if it uses debt, and (3) under the new process if it uses common stock? Rand your answers to the nearest cent. 2. $ 3. $ - 5)At what unit sales level would we have the same EPS it under takes the investment and finances it with debt ar with stock? Rand your answer to the nearest whote cumber or units At what unit sales level would EPS= 0 under the three Production / financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock finonang? Round your answer to the nearest whole number. units/New plan with debt financing- id plan:- units 23

$7,200,000 at 10% a) What would be wcC's EPS (1) under the old production process, (2) under the new process if it uses debt, and (3) under the new process if it uses common stock? Rand your answers to the nearest cent. 2. $ 3. $ - 5)At what unit sales level would we have the same EPS it under takes the investment and finances it with debt ar with stock? Rand your answer to the nearest whote cumber or units At what unit sales level would EPS= 0 under the three Production / financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock finonang? Round your answer to the nearest whole number. units/New plan with debt financing- id plan:- units 23

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
PROGRAMS SELF DEVELOPMENT E-LIBRARY 8. 6. 10 11 12 13 14 15 16 Your company wants to invest JD 10,000,000 in network, taking into consideration the below table Investment 10,000,000.00 Lifetime Annual Revenues in Yearl 2,000,000.00 2% Annual decline in revenues from Y2 30% Direct Cost % of revenues 15% OPEX % of revenues 7% Interest Discount rate/fWACC) CO
Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $20,000. Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 3 O b. 8 O c. O d. 4 O e. 6 S PAGE NEXT PAGE 14:10 to search A O 40) ENG 15-04-2021 hp art sc delete home end 144 %23 24 & num + backspace 6. 8 lock 7 V 8 A U home 1 48 5 0 enter D G K pause ↑ shift 11 C M end alt ctrl
509 Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $679, and the S12L5 sells for $429. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 20Y1 800 1,300 Second quarter, 20Y1 2,200 1,400 Third quarter, 20Y1 5,600 5,300 Fourth quarter, 20Y1 4,600 3,900 First quarter, 20Y2 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer. Stillwater Designs Sales Budget For the Year Ended December 31, 20Y1 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year S12L7: Units fill in the blank 4c338e07ffcd022_1 fill in the blank 4c338e07ffcd022_2 fill in the blank 4c338e07ffcd022_3 fill…
18. C ompany ABC buys a new machine with a list price of $50,000 plus an 8% sales commission. Shipping costs are $800 FOB Destination. Installation costs are $1000. What cost does Company ABC record for the new machine?: * O a. $47,000 O b. $50,000 O c. $54,000 d. $55,000 e. $55,800 19. Acme Company ages its accounts receivables based on the following schedule: Number of Days Past Due Not Due 1-30 31-90 Over 90 Total accounts receivable 30,000 20,000 10,000 5,000 Estimated % uncollectible 3% 5% 15% 30% If Acme's trial balance shows Allowance for Doubtful Accounts with a credit balance of $400, what adjusting entry is necessary for the Allowance for Doubtful Accounts?: * Oa. $1,500 O b. $3,400 O c. $4,500 d. $4,900 e. $5,300 20. Which of the following is defined as sales minus cost of goods sold?: * a. Net income Ob. Operating income c. Retained earnings Od. Income from continuing operations Oe. Gross profit 21. Which tax is displayed on the Income statement?: * O a. Sales tax O b.…
P3-3 Aeoni Laketown predicts that 10,000. unis' of matérials will be used during the year, The expecled daily usage is 4o units, The expected lead time is 6 dáys and there iş a sarety.stock of.300 unlts. Aepn expects that the cost of materláls will be P480 per unit. It. anticipates that it will cost.P200.to.place each order. The annual carrying cost is P1,00 per. unlt. Required:: Calculáte the ordėr point. b. Calčulate the économic order.quantily. Calculate the total ordering and carrying cösts, at EOQ point. a. C. CS Scanned with CamScanner
(M1) Problem: Twitty Company has the following information: Month April May June July $154,000 160,000 142,000 136,000 Budgeted Expenses per Month: Wages Advertising Depreciation Rent Freight-out Other $28,600 27,200 19,000 20,400 freight-out is20% of sales and other expenses are 8% of sales Note: All cash expenses are paid when incurred. The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in June is budgeted to be $6,000. Required: 1- Prepare a combined schedule of total operating expenses and cash disbursements for expenses for June. 2- The following additional information has been provided for June: Cash Collections in June ......................................... $130,000 Inventory purchases (all paid in June)................................ $28,000 Dividends paid in June ....................................................... $4,000 Prepare a cash budget in good form for the month of June, using this information and the budgeted…
Problem A Rain Co. has a total fixed asset of P100,000. The current asset per quarter of the company is shown below: 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 15,000 12,000 17,000 20,500 11,500 17,000 22,000 Cash 19,000 Accounts Receivable 30,000 25,000 Inventories 16,000 15,000 What is the level of long-term financing if Rain Co.'s policy is to finance all fixed asset and 50% of the permanent current assets with long-term financing and the remaining with short-term financing?
EX6-1: Bottom-up Pricing You own a 132-seat restaurant, which opens 6 days a week for 52 weeks of the year. The seat turnover per day is 2.2. You have the following projections about the costs for next year. You require an ROE of 18% on your $240,000 in a restaurant Tax rate: 28% Furniture & Equipment: Book value = $112,000, Depreciation - 20% per year Bank loan: Balance owed: $50,000, interest rate: 12% Insurance: $4,500 Licenses: $3,200 Maintenance: $1,200 Salary: $48,900 Cost of sales (food & beverage): 35% of sales revenue Wage: 33% of sales revenue Other variable costs: 8% of sales revenue Utilities: $12,600 Calculate the sales revenue and average check required to cover all restaurants expenses and profits for the next year. *Show your work in the cells for full credits. Revenue Variable cost Contribution margin - Fixed cost Operating income. - Tax
elean.squ.edu.om/mod System (Academic) gerial Accounting || fall20 XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $70 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? on Select one: O a. 10,000 Ob. 11,250 O c. 7,500 O d. 9,000 O e. None of the given answers.
- Google Chrome uiz/review.php?attempt3D209035&cmid%3D184761 odle Scott Company's variable expenses are 90% of sales. The company's break-even point in sales is $2,400,000. If sales are $500,000 below the break-even point, the company would report a: Select one: O $40,000 loss. cannot be determined from the data given. $50,000 loss. "SSo) 000'00$ The break-even point in sales dollars for Alpha Company is $400,000 and the company's variable costs are a % of sales is 60%. If Alpha Company desires an income of $300,000, of sales would have to total: Select one: uon 000'002S 000'006$ $1,150,000 here to search 直。
2. EOQ / Production / Discounts A machine company uses 3000 brackets during the course of a year. The brackets are bought from an external supplier at a price of 50 kr. each and will be received the same day as the order is placed. The average ordering cost is 187.50 kr. per order. The company uses an interest rate of 18% to account for the cost of capital, the cost of storage and handling is estimated to 4% and insurance to 3% of the value. You can assume that there are 250 working days in one year. a. Determine the economic order quantity for the brackets. b. Given the optimal order size from a, calculate the following: i Cycle time. i. Average inventory level. i. Annual inventory cost. iv. Annual ordering cost. The company is able to produce the brackets themselves at a rate of 60 per day. The fixed cost of setting up for production run is 600 kr. You can also assume that the variable cost of production is equal to the price when buying from an external supplier. c. What is the…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS