A machine operator stamps labels on sheets of metal that are later made into cans. Each sheet can make 118 cans. The cost per sheet of metal is $10.60. The operator is paid $9.40 per hour and labels 120 sheets per hour. What is the prime cost of labeling 1 can? a.$.0905 b.$.01 c.$.0105 d.$.011 e.not given
Bert will receive a promotion next month. He will receive a 12.5% salary increase, a 5.55% cost of living adjustment, and a 6.8% merit increase. What will his new salary be if his present salary is $26,990? a.$34,212.06 b.$30,775.64 c.$33,683.52 d.not given
Wholesale company produces circuit breaker containers. The machine operator stamps 15 containers from each strip of aluminum. Each strip costs $1.15. The operator can stamp 540 containers per hour. The direct labor charge is $17.85 per hour. What is the prime cost of manufacturing a circuit breaker container? a.$.32 b.$.03 c
Larry checks 400 samples per hour of calculators produced. The production process is in control if 1% or less are defective. At 6am he found 3 of 400 samples defective. At 7am, he found 6. Then, at 8am, he found 1. What percent were defective at 6 am? b.What percent were defective at 7am?
Barry packs books for a bookstore. A new edition of a dictionary is ready to be boxed for shipment. Each dictionary measures 11inches x 8.5in. x 4in. The carton for these books is 1/8 inch thick. What are the dimensions of the cartons if the books are laid flat, in 2 stacks of 6 dictionaries? a.17x11x24 b.32x11x8 c.18x10x12 d
Vedio Inc. produces training videos. The fixed costs total $3,748,500.The selling price per video is $24.95. The variable cost per video is $8.46.What is the break-even point rounded to the nearest number of videos? a.227,320 b.458,211 c.250,345 d.312,323 e.not given
2. Calculate the aftertax cost of debt under each of the following conditions. Please see attached for table.
Discussion Question 1: What impact do changing interest rates have on the price of long-term vs. short –terms bonds? What do you think is happening in the bonds market today? What impact, if any does, does the stock market have on the bond market?
You are considering the purchase of a Treasury bond in the secondary market. Bonds with five years to maturity, paying a half-yearly coupon of 12 per cent per annum, are currently yielding 10 per cent per annum. You wish to purchase a bond with a face value, at maturity, of $1000. A) what price should you pay fro the bond tod
Subject: Mangement Science Details: 1. The owner of Chips, etc. produces 2 kinds of chips: Lime (L) and Vinegar (V). He has a limited amount of the 3 ingredients used to produce these chips available for his next production run: 4800 ounces of salt, 9600 ounces of flour, and 200 ounces of herbs. A bag of Lime chips requires 2
5. You have decided to purchase a home. Congratulations! The home is valued at $200,000 and you seek a mortgage in the amount of $150,000. If you can get a 6% mortgage for 30 years what would be your monthly payment (assume monthly compounding)? What is the formula for this question?
4. I'm thinking that I will need $100,000 for my sons college education (I can dream can't I). If I have 15 years until he enters college, can get a 10% return on my investment and the return is compounded semi-annually (2 times per year), how much do I need to invest EVERY 6 MONTHS? What is the formula for this question?
2. Many economists view a 3% annual inflation rate as "acceptable". Assuming a 3% annual increase in the price of automobiles, how much will a new Saab 93 convertible cost you in 5 years if today's price is $38,000? What is the formula for this answer? a. $32,779 b. $36,110 c. $40,575 d. $42,813 e. $44,052
1. Suppose a stock had an initial price of $84 per share, paid a dividend of $2.25 per share during the year, and had an ending share price of $92. What was the dividend yield? What was the capital gains yield? What was the total return? 2. You bought one of Acme Corporation's 8 percent coupon bonds one year ago for $960.00. T
(ii) OZEN Inc plans to borrow £6 million in 180 days. The loan will be taken out at the appropriate LIBOR rate on the day the loan commence and will be repaid in full 90 days later. OZEN Inc would like to lock in the rate it pays by entering into a forward rate agreement with Bank-ZQ. Bank-ZQ agrees to lock in a rate of 11 p
1. 1. Which of the following would be the best investment based on present value? Assume an annual discount rate of 16% a. An investment that pays $5,000 at the end of each year for 6 years, assuming annual compounding. b. An investment that pays $1,225 at the end of each quarter for 6 years, assuming quarterly compounding
Leslie earns $2000 a month and rents an apartment for $600 a month (utilities included), and also has a credit card with an annual interest rate of 7% and a balance of $1500. She currently has no savings. Design a monthly budget for Leslie so that at the end of two years, the credit card balance is as low as possible and Leslie
Consider two investment alternatives with the following projected cash flows. -Investment #1 (Year 1 is $10,000, Year 2 is $10,000, Year 3 is $10,000). -Investment #2 (Year 1 is $0, Year 2 is $10,000, Year 3 is $25,000). Can we assume that Investment 2 is preferable because its total cash flow over the three-year period i
Exercises 18-1 1. Allocating resources in the most efficient manner maximizes the wealth of any country. It is generally acknowledge that financial information plays an important role in efficient resource information Question: Given that both of the preceding statements are correct, why are the financial reporting rules in
Create a spreadsheet to address the following problem: A. A hospital has an average accounts receivable balance of $20,000,000 and a collection period of 60 days. B. 60% of receivables are not collected on time. The bills for those receivables must be reworked by the patient billing department and resubmit
With the given calculation as follows what is the estimate of required financing needs for each month during the budget period and how much if any will the company need outside financing base on this assumption? Month Sales Collections Costs incurred Payments(raw material) Administrative+lease Depreciation One time investment I
Subject: Finance Details: a. As the firm moves to consider conditions of capital rationing, it must consider portfolios of capital projects. Precisely and completely describe why this is the case. b. Under conditions of capital rationing and certainty, precisely and completely describe a methodology that you would utilize
I. You may have heard big business criticized for focusing on short-term performance at the expense of long-term results. Explain why a firm that strives to maximize stock price should be less subject to an overemphasis on short-term results than one that simply maximizes profits. II. We claim that the goal of the firm is
Why are suppliers of credit interested in the liquidity position of the enterprise? Why is it beneficial for a small business enterprise also to make use of borrowed capital to finance the capital requirements of the enterprise?
1) Briefly discuss the two primary perspectives one should use in financial ratio analysis. How many years should one review the financial statements of a firm?
6.) Assume that Hogan Surgical Instruments co. has $2,000,000 in assets. If its goes with a low-liquidity plan for the assets, it can earn a return of 18 percent, but with a high-liquidity plan, the return will be 14 percent. If the firm goes with a short-term financing plan, the financing costs on the $2,000,000 will be 10 pe
To buy a new plasma TV that costs $3,000, you pay $600 down and finance the remaining $2,400 for 12 months. Find the interest rate the store charges you if your monthly payment is $207.86?
What is meant by the "incremental cost of refinancing?"
Why should the financial manager be familiar with the business cycle?
Here is information on Stock A and B: Stock A Stock B Expected Dividends Next Year $1.00 $2.33 Expected Constant ROE 20% 20% Expected Retention Rate 70% 30% Required Return on Stocks of = risk 20% 20% Which stock is more