Two firms, A and B, both produce gadgets. the price of gadgets is $2 each. Firm A has total fixed costs of $1000,000 and variable costs of $1.00 per gadget. Firm B has total fixed costs of $300,000 and variable costs of $1.40 per gadget. The corporate tax rate is 30% If the economy is strong, each firm will sell 2,000,000 ga
Quicksand Company has set the following standards for one unit of product: Direct material Quantity: 6.2 pounds per unit Price per pound: $11 per pound Direct labor Quantity: 6 hours per unit Rate per hour: $23 per hour Actual costs incurred in the production of 2,800 units were as follows: Direct material: $
You are considering an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00). The stock has a beta equal to 0.9. The risk-free rate is 5.6%, and the market risk premium is 6%. The stock's dividend is expected to grow at some constant rate g.
A company currently pays a dividend of $2 per share, D0 = $2. It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then the dividend will grow at a constant rate of 7% thereafter. The company' stock has a beta equal to 1.2 the risk-free rate is 7.5%, and the market risk premium i
Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (I.e. DI = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs , is 15%. What is the value per share of the company's stock?
Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected returns and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?
SBC Corp. just paid a dividend of $0.65 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future. The company's beta is 0.95, the required return on the market is 10.50%, and the risk free rate is 5.00%. What is the company's current stock price?
Please see attached. Thank you. Week 3- Investments & Revenue Recognition 1. On the third tab of your Excel file, report on the investments your company has and their dollar amounts. Also report the amount of interest, dividends, and gains on sale of investments that occurred in the most recent year. Be sure to include any inv
Explanations for Riordan Manufacturing databases for "data warehousing" meeting
A company manufactures a generator.in one year it sold 850 at a price of £350 each.the variable costs were £200 per generator and the fixed cost were £60000.what is the break even point in terms of sales and income?
Explain in detail how you arrived at the answers. 1.The graduate selection committee wants to select the top 10% of applicants. On a standardized test with a mean of 500 and a standard deviation of 100, what would be the cutoff score for selecting the top 10% of applicants, assuming that the standardized test is normally dis
Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650
Last year Mason Corp's earnings per share were $2.50, and its growth rate during the prior 5 years was 9.0% per year. If that growth rate were maintained, how many years would it take for Mason's EPS to double?
Holden Graham started the Graham Co a new buisness that began operations on may 1. The graham co completed the following transactions during its first month of operations. May 1 H. Graham invested $43,000 cash in the business in exchange for common stock. 1 Rented a furnished office and paid $2,200 cash for May's rent. 3 Pu
After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). The first deposit will be made a year from today. In addition, yo
Annas Pretzels announced that on May 1, 2004, that it will pay a dividend of $5.00 per share on June 15 to all holders on record as of May 31st. The firm's stock price is currently at $70 per share. Assume that all investors are in the 33% tax bracket. Given that the ex-dividend date is May 29, what should happen to Anna's stock
Ricky Bobbie, the managing partner of the law firm Bobbie, Bagan, and Clark, LLP, makes asset acquisition and disposal decisions for the firm. As managing partner, he supervises the partners in charge of the firm's three branch offices. Those partners have the authority to make employee compensation decisions. The partners' comp
Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of - 0.3, and a beta coefficient of - 1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a correlation with the market of 0.7, and a beta coefficient of 1.0. Which securit
1)How do capital transactions differ from ordinary transaction types? Should the maximum capital loss carryforward / carryback be increased substantially? By what amount? 2)How do capital gains and losses affect taxable income?
Question: Formulate the return objective for John Ribbon, who is planning to retire in 5 years. John's current spending needs of $120,000 per year are currently met by his salary, which is indexed to inflation. John expects to continue his current lifestyle even after his salary stops. Assume that inflation is expected to be 3
A stock's return has the following distribution: Demand for the Probability of This Rate of Rate of Return if This Company's Products Demand Occurring Demand Occurs Weak 0.1 (50%)
The unaudited quarterly statements of income issued by many corporations to their stockholders are usually prepared on the same basis as annual statements, their statement for each quarter reflecting the transactions of that quarter. Required: a. Why do problems arise in using such quarterly statements to predict the income
Moctezuma Inc. produces and sells three products. Unit data concerning Each product is shown below. Product D E F Selling price $200 $300 $250 Direct labor costs 25 75 30 Other variable costs
Pitney Corporation manufactures two types of transponders?no. 156 and no. 157?and applies manufacturing overhead to all units at the rate of $76.50 per machine hour. Production information follows. No 156 No 157 Anticipated Volume (Units) 6,000 14,000 Direct material cost
On May 1, Dandy Company had a work-in-process inventory of 10,000 units. The units were 100% complete for material and 30% complete for conversion, with respective costs of $30,000 and $1,850. During the month, 150,000 units were completed and transferred to finished goods. The May 31 ending work-in-process inventory consist
Prepare an answer sheet with the following coumn headings. For each of the following trasactions or adjustments you are to indicate the effect of the transaction or adjustment on assets, liabilities and net income by entering for each account affected the account name and amount indicating wheather it is an addition or subtract
1. S&R Rental's rents and services different types of yard-improvement equipment. Information about the company's financial performance is provided below: Average shares outstanding $15,000 Cost of goods sold $44,000 Debt outstanding
XYZ Corporation uses a job-cost system and applies manufacturing overhead to products on the basis of machine hours. The company's accountant estimated that overhead and machine hours would total $800,000 and 50,000, respectively, for 20x1. Actual costs incurred follow. Direct Material Used $250,000 Direct Labor
Question 1: Forever Green Co. manufactures artificial Christmas trees. In 2004, Forever Green only produced one type of tree, the Merry Green Tree. However, in 2005 Forever Green introduced a new, top-of-the-line product, the Green as can be Tree. The two products require different materials and are manufactured in separate ba
Analyzing and interpreting information classifying economic events explaining uses, meaning, and limitations of data keeping a systematic chronological diary of events measuring events in dollars and cents preparing acconting reports reporting information in a standard format summarizing economic events accounting is a