Questions Questions Ask question Search Order By: ActiveCategoryClear Filter 0 Votes 0 Ans Suppose your firm wanted to expand into a new line of business quickly, and that management anticipated that the new line of business would constitute over 80 percent of your firm’s operations within 3 years. If the expansion was going to be financed partially with debt, would it still make sense to use the firm’s existing cost of debt, or should you compute a new rate of return for debt based on the new line of business? 535 views 0 Votes 0 Ans Why do you feel that in order for this company to continue to make more revenue, the operating expense continues to increase? I feel that in order for a company to stay fresh with innovative products, more money does need to be spent in order to stay ahead of the competition 869 views 0 Votes 0 Ans Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. 806 views 0 Votes 0 Ans Which product makes the MOST profitable use of the grinding machines? 3.50K views 0 Votes 0 Ans You hold a portfolio composed of 40% security A and 60% security B. If A has an expected return of 15% and B has an expected return of 10%, what is the expected return from your portfolio? 686 views 0 Votes 0 Ans Minty Airfresheners Ltd. maintains an inventory of bottles with chemical disinfectants to meet its annual demand for 84,200 bottles to service restrooms 2.02K views 0 Votes 0 Ans The advancement of women in management: 804 views 0 Votes 0 Ans What is the NPV of agreeing to write the book 945 views 0 Votes 0 Ans What is the amount of interest that Crocus should capitalize in 2016, using the specific interest method? 747 views 0 Votes 0 Ans what is the effect on the contribution margin per unit and the contribution margin ratio? 672 views 0 Votes 0 Ans 1) What is the sales revenue at this transfer price? 2) If Spartan Division had no capacity constraints, what is the minimum transfer price it could accept on the order from Trojan Division? Explain your answer. 647 views 0 Votes 0 Ans Explain why the divisional cost of capital approach may cause problems if new projects are assigned to the wrong division 774 views 0 Votes 0 Ans The value of the stock: A) Increases as the dividend growth rate increases B) Increases as the required rate of return decreases C) Increases as the required rate of return increases D) Both A and B E) None of the above 617 views 0 Votes 0 Ans . Why are most futures positions closed out through a reversing trade rather than held to delivery? 701 views 0 Votes 0 Ans Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project. 3.76K views 0 Votes 0 Ans What is the net present value of this project in U.S. dollars? 826 views 0 Votes 0 Ans Determine how much of the ending inventory of R1,106,000 above consists of fixed manufacturing overhead cost deferred in inventory to the next period. total fixed manufacturing overhead in ending inventory R ——- 2. Prepare an income statement for the year using the variable costing method. + 1.54K views 0 Votes 0 Ans 576 views 0 Votes 0 Ans Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,130,000. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $2,160,000 in annual sales, with costs of $1,150,000. The project requires an initial investment in net working capital of $151,000, and the fixed asset will have a market value of $176,000 at the end of the project. Assume that the tax rate is 30 percent and the required return on the project is 14 percent. What is the net cash flow of the project for the following years? NPV of project???? 1.54K views 0 Votes 0 Ans Calculate the maximum MACRS depreciation on the assets. 776 views « Previous 1 2 … 85 86 87 88 89 … 128 129 Next »
