Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Working capital investment
CDL Corporation produces motorcycle batteries. CDL turns out 1,500 batteries a day at a cost of $5 per battery for materials and labor. It takes the firm 24 days to convert raw materials into a battery. CDL allows its customers 40 days in which to pay for the batteries, and the firm generally pays its suppliers in 30 days. Assume 365 days in year for your calculations.
CDL management is trying to analyze the effect of a proposed new production process on its working capital investment. The new production process would allow CDL to decrease its inventory conversion period to 15 days and to increase its daily production to 2,000 batteries. However, the new process would cause the cost of materials and labor to increase to $11. Assuming the change does not affect the average collection period (40 days) or the payables deferral period (30 days), what will be the length of its cash conversion cycle and its working capital financing requirement if the new production process is implemented? Round your answers to two decimal places.
Rosenthal Design has daily sales of $37,909. The financial management team determined that a lockbox would reduce the collection time by 1.3 days. Assuming the company can earn 7.1 percent interest per year, what are the savings from the lockbox?
If the underwriter charges 5% of gross proceeds, and all the shares are primary shares sold to new investors, what percentage of the company will be owned by the new investors?
FV of multiple cash flows: Stiglitz, Inc., is expecting the following cash flows starting at the end of the year-$113,245, $132,709, $141,554, and $180,760. If their opportunity cost is 9.6 percent, find the future value of these cash flows.
Why do we say money has time value? Why is it significant for business managers to be familiar with the time value of money concepts? Illustrate out the term Present Value.
A firm incurs $70,000 in interest expenses each year. If the tax rate of the firm is 20%, what is the effective after-tax interest rate expense for the firm?
What should the firm set as the required rate of return for the project? 15.39 percent 13.92 percent 12.54 percent 17.33 percent 17.06 percent
Which investment has the least amount of risk?
The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 8.5%. What is the value (in thousands) of the option to delay the project?
the cash inflows are projected to grow at 2 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $119,000 at the end of year 11.
The offer price is $45 per share and the company's underwriters charge a spread of 7 percent. The SEC filing fee and associated administrative expenses of the offering are $550,000. (Enter your answer as directed, but do not round intermediate cal..
If the discount rate for the calculation is 13 percent, what is the most she should have paid for the annuity? Use Appendix B and Appendix D.
Prepare Income Statement, Balance Sheet and Cash Flow. Also calculate DCF value per share, Use assumptions given on the tab "Assumptions" in attached Excel file
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd