Reference no: EM13788967
Q.1: You are provided the following working capital information for the Ridge Company:
|
Ridge Company
|
|
Account
|
$
|
| |
|
|
Inventory
|
$12,890
|
|
Accounts receivable
|
12,800
|
|
Accounts payable
|
12,670
|
| |
|
|
Net sales
|
$124,589
|
|
Cost of goods sold
|
99,630
|
Operating cycle: What is the operating cycle for Ridge Company?
Q.2: The operating cycle
Q.3. Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, use the EOQ formula to calculate the optimal order size.
Q.4: The asset substitution problem occurs when
Q.5: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.
How much are your cash flows today?
Q.6: Melba's Toast has a capital structure with 30% debt and 70% equity. Its pretax cost of debt is 6%, and its cost of equity is 10%. The firm's marginal corporate income tax rate is 35%. What is the appropriate WACC?
Q.7: According to the text, the financial plan covers a period of
Q.8: The financing plan of a firm will indicate
Q.9: Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders. Find the firm's dividend payout ratio and retention ratio.
|
Income taxes-simple rate of return on machine is closest
: Jason Corporation has invested in a machine that cost $80,000, that has a useful life of eight years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life...
|
|
Shareholder model of corporate governance
: Explain the major differences between the shareholder model of corporate governance and the stakeholder model of corporate governance?
|
|
Balance in agees equity investment account at end of year
: Agee Corporation acquired a 36% interest in Trent Company on January 1, 2015, for $520,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2015, Trent paid cash dividends of $158,000 and thereafter ..
|
|
What are the four general categories of physical evidence
: What are the four general categories of physical evidence? Briefly explain the process of marking an item of evidence for identification purposes
|
|
Dividend payout ratio and retention ratio
: Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders. Find the firm's dividend payout ratio and retention ratio.
|
|
Benefits and costs associated with a strategy
: The Topic Paper will be on a current topic in international business. The paper should have at least four sources other than the textbook, be five pages in length (not including the bibliography), be double spaced with regular margins, and be in 1..
|
|
Prepare comparative analysis on income statement
: Prepare vertical common-size financial statements, horizontal common-size financial statements, and various profitability and risk ratios.
|
|
Contrast the analysis of the standard issues
: Compare and contrast the analysis of the standard used to a state using a different standard.
|
|
Present value-pv of multiple cash flows
: Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years? (Round to the nearest dollar.)
|