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Get college assignment help at uniessay writers 1. You are planning to start a new company. You will need $40,000 in capital to start the company. You obtain $20,000 from equity investors and $20,000 from the bank. You will need to pay the bank 10% interest and have promised your investors 20 %. The tax rate is 60%. You estimate operating costs at $3000 per year. You plan to operate the company for 3 years and pay off equity and debt during the three years. You expect salvage to be $10,000 at the end of the 3 years. Use the AEC equation and the table format presented in class to determine the annual equivalent revenues for the following cases: Standard table with straight line depreciation. b.Now assume salvage will be $15,000 with SL depr. c. Use SOYD depr to calculate the AER (annual equivalent revenues) a.
Loan Amortiation Assign ment Protected! View- Excel Sach T tucker warteom Share Comments Flc Revicw view Help Нсme Insert Page Laycut Formulas Data Ci PROTECTED VIEW Bcardul ies from the Intenst rssafer to stavin Potectedd Vi Foable Ftieo an contain viuse Uniess wou nesd to t Assignment # AJ C D E F AsienHent 1n Consider a 30-year adjustable rate mortgage (ARM), winich requres H K N Clipboard e. e manthly Paymencs ak the end of each Clor ll Pade Al Click an tem to Paste years. Prepare a loan amortization schedule for this mortgage. Assume that the mortpage closing date is October 1, 2018, Among other things, the tollowing columns should be Included. D Dete Beginning Balance iv) Principal v) Interest e Princi pal inesnd 2 vii Culal 11 14 13 20 23 shon ******
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,100; winter 8,100; spring, 7,100; summer, 12,100. Inventory at the beginning of fall is 505 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff, S200 for each worker laid off, inventory holding, S5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour, overtime, S8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess inventory in prior seasons expressly for the purpose of reducing the number of temp workers in Summer. (Leave no cells blank be certain to enter “0” wherever required. Negative values should be indicated by a minus sign. Round up “Number of temp workers, Workers hired and Workers laid off” to the next whole number and all other answers to the nearest whole number.) Fall Winter Spring 7.100 Summer Forecast 10,100 8,100 12.100 200 505 100 Beginning inventory 7035 9595 11000 11935 Production required Production hours required 19190 22000 14070 23870 14400 14400 14400 14400 Production hours available 0 0 0 Overtime hours Temp workers2 10 4 0 20 4800 1920 0 9600 Temp worker hours available 19200 16320 144000 24000 Total hours available Actual production 9600 8160 7200 12000 65 165 65 Ending inventory 10 0 20 Workers hired 6 4 20 Workers laid off Summer Fall Winter Spring 72000 72000 72000 72000 Straight time S S 0 0 0 0 Overtime 1275 175 575 575 Inventory 0 Backorder 1000 2000 Hiring 0 1200 800 4000 Layoff 74275 73375 73375 78575 Total S S 299600 Annual cost
The consulting agency’s client traditionally charges $1.50/litre for wastewater treatment. On the average their facility processes 26 million litres per day. The variable costs per litre is $1. The consulting agency has decided to try using yield management approaches for their client to reduce surge demand. Since their facility is operating at 85% capacity on the average each day, if wastewater surges past the average 26 million litres per day, the source of the surge will be identified using newly installed sensors so that source can be charged a premium price of $2/litre. While if under the average 26 million litres per day, the charge will be reduced to $1.30/litre for those served. The plan considers that higher charges will have sources with regular surges seeking to reduce wastewater into their system. They estimate 8 million litres per day comes from sources with regular surge demand issues while 14 million litres per day is from sources without this issue. Variable costs will not change. What is the single price revenue and the two price revenue? Should they do? Single price charges $13 Million, with two prices charges $12.2 Million. The client should pursue this plan. Single price charges $13 Million, with two prices charges $12.2 Million. The client should not pursue this plan. Single price charges $39 Million, with two prices charges $34.2 Million. The client should pursue this plan. Single price charges $39 Million, with two prices charges $34.2 Million. The client should not pursue this plan.
module 06 (AutoRecovered) – Saved to this PC Layout References n Mailings Review View O Search Help A A A Aa- A T AaBbCcD AaBbCcDc AaBbC AaBbCcC x, x A D. A T Normal T No Spac… Heading 1 Heading 2 Font Paragraph Styles 7 50)The essential offer term for a sale of land or property contract is NOT: a) Price b) Paper c) Parties d) Partition e) Performance Date
i need to know what the freezing point of borax is for my science fair project could u plz help me with this??? What is the freezing point of Borax? (the houshold cleaning and laundry one.)
Keidis Industries will pay a dividend of $2.85, $3.95, and $5.15 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $46.00 per share. The return on similar stocks is 9.5 percent. What is the current stock price? $54.72 $45.64 $42.38 $41.82 $47.81 Red Sun Rising just paid a dividend of $2.52 per share. The company said that it will increase the dividend by 30 percent and 25 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.8 percent. If the required return is 11.8 percent, what is the stock price today? $45.44 $42.51 $47.08 $25.00 $48.72 Stana, Inc., has preferred stock outstanding that sells for $98.87 per share. If the required return is 3.87 percent, what is the annual dividend? $3.58 $3.83 $3.68 $3.44 $3.97
5. A $350,000 investment is expected to provide cash inflows of $100,000 at the end of each of the next five years. What is the net present value of the investment using a discount rate of 10%, rounded to the nearest dollar? 6.A $400,000 investment is expected to provide cash inflows of $100,000 at the end of each of the next 10 years. What is the net present value of the investment using a discount rate of 12%, rounded to the nearest dollar?
An investor is deciding between investing in the bonds issued by two companies operating in the sar industry using the information listed below: me Company A $20 million $2 million $4 million $10 million Company B $50 million $5 million $7 million $25 million Revenue Interest Expense Earnings before interest, taxes Assets Based on the companies’ financials listed above, use two financial ratios to identify the company that is less likely to default
An insurance company has the liabilities with the following payment pattern, each at the end of the respective year: $2.5 million $4.2 million $6.0 million Year 3: Year 7 Year 20: There are no other liabilities for the insurance company to consider. The discount rate for the liabilities is 3% The insurance company has the following investment opportunities in bonds and stocks: Common Stocks Zero-Coupon Bonds Coupon Bonds Maturity Yield Duration Stock Dividend Duration Maturity Yield 4 7,0% 3 A 5.0% 20 3 1.5% 10 9.0% 7 9.3% 11 5 2.0% 10 20 10.0% 11 C 10.0% 7 2.0% 11.0% 30 20 14.3% 7 10 3,0% 15 3.5% 20 4.0% (Note: As for bonds, it is possible to compute something like duration for dividend paying stocks. More about that in later classes.) Using the information about the zero-coupon bonds, draw the yield curve and compute two forward rates of your choice. Calculate the duration of the liability The insurance company desires a rate of return of 11% for its investments. Using the securities listed above, design and provides an expected return of at least 11%. If such a portfolio is impossible to achieve with the securities listed above, what return can be achieved? How can the liabilities of the insurance completely immunized from all interest changes? Explain your approach and build the portfolio a. b. C. investment portfolio that is immunized from small interest rate changes an d.
Get college assignment help at uniessay writers apter 3- EOC Questions Assets $49.0 $41.0 Cash and equivalents Accounts receivable 473.0 378.0 590.0 513.0 Inventories Total current assets $1,112.0 $932.0 Net plant and equipment 842.0 648.0 Total assets $1,954.0 $1,580.0 Liabilities and Equity Accounts payable $208.0 $189.0 Notes payable 68.0 54.0 81.0 Accruals 89.0 Total current liabilities $365.0 $324.0 Long-term bonds 540.0 675.0 Total debt $1,040.0 $864.0 Common stock 828.4 666.0 Retained earnings 85.6 50.0 Common equity $914.0 $716.0 Total liabilities and equity $1,954.0 $1,580.0 Write out your answer completely. For example, 13 million should be entered as 13,000,000. a. What was net operating working capital for 2010 and 2011? 2010: $662 2011: $815 b. What was the 2011 free cash flow? e Type here to search c. How would you explain the large increase in 2011 dividends? I. The large increase in net income from 2010 to 2011 explains the large increase in 2011 dividends. II. The large increase in EBIT from 2010 to 2011 explains the large increase in 2011 dividends. in free cash flow from 2010 to 2011 explains the large increase in 2011 dividends. III. The large increase IV. The large increase in sales from 2010 to 2011 explains the large increase in 2011 dividends. V. The large increase in retained earnings from 2010 to 2011 explains the large increase in 2011 dividends. -Select- Save
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long- term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 6%. The probability distribution of the risky funds is as follows: Expected Standard Deviation Return Stock fund (S) Bond fund (B) 16% 35% 12 15 The correlation between the fund returns is 013 Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermedieate calculations. Enter your answers as decimals rounded to 4 places.) Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation
Question 3 Employee Benefits (16 marks) Part A (8 marks) The employees of Brown Ltd are entitled to 13 weeks’ long service leave after 15 years continuous service. The following information has been compiled for calculating the liability for long-service leave as at 30 June 2018 Aggregate projected Probability of becoming unconditionally Number of Aggregate annual Years of service as at 30 June 2018 employees as at 30 June 2018 annual entitled to salaries for salaries when leave is due long-service leave 2017-2018 0.35 000 0S0 000 0t6 91 Total 000 08 00′ 000 08 $630 000 The long-service leave liability reported for the year ended 30 June 2017 was $22 360. $1 020 000 The following government and corporate bond rates have been identified. Government bond rate Period to maturity Corporate bond rate (%) % 3 years 4 years 11 years 16 years 6 REQUIRED: Prepare the general journal entries for the year ended 30 June 2018 to provide for long- service leave for employees in accordance with the requirements of AASB 119. Show all calculations. Round to the nearest $ amount. Part B (8 marks) Briefly explain the situations when the recognition of liabilities or assets for defined contribution and defined benefit post-employment plans is required in accordance with AASB 119.
Question 5 Foreign Currency (18 marks) On 15 June 2018, Koala Ltd, an Australian entity, entered into a purchase commitment with WID Co., a US supplier of engines, with those engines to be shipped on 30 June 2018, at which time control of the assets will be transferred to Koala Ltd. The total contract price was US$4 000 000 and the full amount was due for payment on 30 August 2018 Because of concerns about movements in foreign exchange rates, on 15 June 2018, Koala Ltd entered into a forward rate contract on US dollars with a foreign exchange broker to purchase US$4 000 000 on 30 August 2018 at a forward rate of SA1.00-US$0.75. Assume that the hedge satisfied the hedge accounting requirements of AASB 9, it was 100% effective and that Koala Ltd had designated the hedging arrangement as a cash flow hedge. The financial year end of Koala Ltd is 30 June. The following exchange rate information is available: Spot rate Forward rate for delivery of US$4 000 000 on 30 August 2018 A$1.00 US$0.75 A$1.00 US$0.78 15 June 2018 AS1.00 US$0.73 A$1.00 US$0.76 30 June 2018 A$1.00 USS0.71 A$1.00 US$0.71 30 August 2018 REQUIRED: Show all calculations on measuring fair values (and changes in fair values) of the hedged item and the hedging instrument on relevant dates. Prepare general journal entries to record these transactions in Koala Ltd’s books in accordance with the requirements of AASB 9.
A bank’s position in options gamma of -80,000. Explain how these numbers can be interpreted. The exchange rate (dollars per euro) is 0.90. What position would you take to make the position delta neutral? After a short period of time, the exchange rate moves to 0.93. Estimate the new delta. What additional trade is necessary to keep the position delta neutral? Assuming the bank did set up a delta-neutral position originally, has it gained or lost money from the exchange-rate movement? on the dollar-euro exchange rate has a delta of 30,000 and a C
A fund manager has a portfolio worth $200 million. The manager’s portfolio return changes have a 0.7 correlation with ASX 200 index return changes. The manager’s portfolio return change has a standard deviation that is 35% greater than return changes in ASX index return. The manager is concerned about the performance of the market over the next two months and plans to use three-month futures contracts on the ASX 200 to hedge the risk. The current level of the index is 5840, one contract is on 250 times the index, the risk-free rate is 4% per annum, and the dividend yield month futures price is 5887 on the index is 2.4% per annum. The current 3
ex) FUTURE RATE AGREEMENTS: FRA Money market Instruments Practice Case: Today 3m Libor quoted at 2,55-2,60%. Company pays a Floating rate (Libor 0,3% ) on a € 25 min bank loan Company Expects in 3 months from now an increase in Libor rate 3×6 FRA quoted by AB-bank at 2,62-2,66% Questions? in three months from now 1) If 3m-Libor is 5%, what would be the settlement amount, the effective payment and rate on the 25 min loan? 2) If 3m-Libor is 2.5%, what would be the settlement amount, the effective payment and rate on the 25 min € loan? X실레 계산시 7.주의하기 FRA – /om $ X (5/- 3.66 ) X SA Year
oduct that was to be r the product out of the budgt Th way the financial results for the product would boost actual profits well above the amount budgnted resulting in favorable reviews for the division and its managers. What should Mary Sue d 1-BI Scorekeeping, Attention Directing, and Problem Solving For each of the following activities, identify the function the accountant is performingscorekeeping introduced in a month. He attention directing, or problem solving. Explain each of your answers. 1. Estimating the operating costs and outputs that could be expected for each of two large metal stamping machines offered for sale by different manufacturers; only be acquired by your company 2. Recording daily material purchase vouchers 3. Analyzing the expected costs of acquiring and using each of two alternate types of welding p one of these machines is to equipment 4. Preparing a report of overtime labor costs by production department 5. Estimating the costs of moving corporate headquarters to another city A 6. Interpreting increases in nursing costs per patient-day in a hospital 7. Analyzing deviations from the budget of the factory maintenance department 8. Assisting in a study by the manufacturing vice president to determine whether to buy cetain parts needed in large quantities for manufacturing products or to acquire facilities for manufacturing these parts
or the next four years. The interest rate on the loan is 9% APR. You are considering making an extra payment of $200 today (that is, You have an outstanding student loan with required payments of $600 per month you will pay a. If you are required to continue b. What effective rate of return (expressed as an APR with monthly compounding) have you eamed on the $200? nextra $200 that you are not required to pay). make payments of $600 per month until the laan is paid off, what is the amount your final payment? pay an extra $275 per month in addition to your requirod montbly navments of seo E in totalch month H leng will it toke wou to pay off the lo an each month, Looking at your budget, you can afford t
15. Comparing Investment Criteria. exclusive projects: Consider the following two mutually 01 3 4 Cash Flow (A) Year Cash Flow (B) -$235,000 -$47,000 1 29,000 28,700 2 45,000 19,900 3 51.000 17,300 325,000 16,200 Whichever project you choose, if any, you require a return of 13 percent on your investment. If you apply the payback criterion, which investment will you choose? Why? b. If you apply the NPV criterion, which investment will you choose? Why? If you apply the IRR criterion, which investment will you choose? Why? d. If you apply the profitability index criterion, which investment will choose? Why? Based on your answers in parts (a) through (d), which project will you finally choose? Why? a. C. e. 4e
Q4: What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 4.25% for an investor in the 28% marginal tax bracket? (3 Points) Q5: A 5.25% coupon bond with 14 years left to maturity can be called in 4 years. The call premium is one year of coupon payments. It is offered for sale at $1,075.50. What is the yield to call (YTC) of the bond? (3 points)
The post Question: 1. You Are Planning To Start A New Company. You Will Need $40,000 In Capital To Start The Company. You Obtain $20,000 From Equity Investors And $20,000 From The Bank. You Will Need To Pay The Bank 10% Interest And Have Promised Your Investors 20 %. The Tax Rate Is 60%. You Estimate Operating Costs At $3000 Per Year. You Plan To Operate The Company For … appeared first on uniessay writers.
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