3. The accounting department head of MOOG Controls Phils. has asked his financial manager to provide a pro forma statement of the company's "value" under a variety of prospective expansion scenarios, wvith the assumption that the company's many divisions will always be a single entily. The company's manager Is concemed because, despite the fact that the company's competitors are few, their yearly sales growth has topped 60% in each of the last five years. The accounting department head advised that the valuation estimates be based on the company's profits of Php5.2 billlon (which have yet to be paid out to investors) and the average interest rate over the past 20 years (7 percent) in each of the following profit growth scenarios: A. 5.5% annual growth rate of profits. B. 2.8% annual growth rate of profits. C. 0% annual growth rate of profits. D. 10.25% annual growth rate of profits.
Q: 2. A refrigerator manufacturer is planning capacity expansions. They have determined that their…
A: Capacity Cost are in the form : F(y) = kya For above example , a = 0.62 & k = 0.0107 Demand is…
Q: 6) A firm's short-run revenue is given by R=10e -e², where e is the level of effort by a typical…
A: The short run is a notion that asserts that at least one input is constant while the others are…
Q: If Costco can’t find enough land in a particular location tobuild its usual store format, should it…
A: The firm above has to decide whether to build or not , something smaller, such as conventional…
Q: HOW DO YOU SEE IT? The graphs labeledL1, L2, L3, and L4 represent four differentpricing discounts,…
A: The original price helps in finding the original price after there is a decrease in the percentage.…
Q: 40: Suppose a shoe maker has a normal fixed expense of $0.50 per shoe at a yield of 10,000 shoes. On…
A: Fixed costs refers to the part of the total costs which are not affected by the quantity of goods…
Q: It two companies, ABC Corporation and XYZ Corporation, are identical except that ABC has a P/E ratio…
A: P/E ratio or Price / Earning = stock price / Earning per share Higher the ratio, higher will be the…
Q: Firms in the patented pharmaceutical industry earned an average return on net worth of 22 percent in…
A: The profit is the excess revenue that is made after deducting the total cost of production from the…
Q: (a) A retail company has a marginal profit curve given by: MP = -2 2+160Q + 2145. Determine the…
A: Disclaimer: Since you have asked multiple questions, we will solve the first question for you. if…
Q: 1. A company cannot create another company. O A) True O B) False
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: Mr. Barnes sells raincoats and sun hats at a concession stand at an amusement park. His profit…
A: Given information Profit matrix Selling during Rain Shine Buying for Rain 450 -200…
Q: consider
A: Business–IT alignment is a process in which an organisation makes use of information technology in…
Q: Microsoft P=$83.80 Earning per share (EPS)= $4.05 Price earring ratio (P/E) = ? Rate of return =…
A: Companies use various measures to analyze the profitability of various projects. Earnings per share,…
Q: 11. For most products, higher prices result in a decreased demand, whereas lower prices result in an…
A: Given: The price-demand relationship is: d = 800 - 10P d = annual demand for products p = price per…
Q: Stocks are thne type of securities that O a) represent ownership of the firm by the holders. O b)…
A: A stock is basically a type financial instrument that reflects a company's ownership stake.When you…
Q: A manufacturer of doors, windows, and cabinets writes her yearly profit (in thousands of dollars)…
A: Given Information P = 248319523 Fixed coat c = 403060 Suppose Income be = x1x2x3
Q: every year for the next 49 years, at which point your friend intends to shut down the business. The…
A: Therefore, the correct answer is option B i.e., 'No, according to the fundamental value equation,…
Q: What type of corporation is it if the corporation is registered in a foreign country? Select one: O…
A: Answer: Alien corporation: if a corporation is registered in any foreign country (say Japan) and…
Q: What is leverage ratio and how its applied to Auto Industry?
A: A leverage ratio refers to one of numerous financial metrics that examines how much money originates…
Q: Imagine that you are investigating the Costs and Benefits of a New Nuclear power plant. You are told…
A: Present value is the value today of a future stream of payments given the discount rate. Annual cost…
Q: 7) A coal plant and a natural gas plant have the following attributes: Coal Baseload Gas Baseload…
A: Introduction : coal-fired power station or coal power plant is a thermal power station which burns…
Q: 4. What would be the price per unit if the firm in the figure below is producing the num of outputs…
A: Profit = Total Revenue - Total Cost
Q: a) The owners of firms in the real world would generally expect (in the long run at least) to have…
A: Let's first learn about economic profit. The difference between the revenue earned by the firm and…
Q: Question 23 The aim of Portfolio analysis is to evaluate related and unrelated diversification…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: Two firms in the same industry sell their products at K10 per unit, but
A: A. Break-even output for first firm = TFC / (P - AVC) = 100/(10 - 6) Break-even output for first…
Q: Q Price TR AR MR TC MC Profit 0 30 0 0 0 70 -70 5 27 135 27 27 135 0 10 24 240 24 21 197 43 15…
A: Q Price TR AR MR TC MC Profit 0 30 0 0 0 70 0 -70 5 27 135 27 27 135 13 0 10 24 240 24 21…
Q: for a certain product, if the number of units that gives maximum revenue is 300 units, the number of…
A: Revenue will be maximized when: Q = 300 units Profit will be maximized when : Q' = 250 units For…
Q: 6. Which of the following is a violation of Section 11 of the 1933 Securities Act? O a. Failing to…
A: The section 11 of the 1933 securities Act give investors the right to hold issuers and underwriters…
Q: 4
A: As per honor code, we’ll answer only one question at a time , we have answered the first question…
Q: Bates that the price of a gallon of jet fuel will rise from $3.00/gallon to 3.50/gallon between now…
A: The Fuel hegde contract is a futures contract that allows a fuel consumer company to establish fixed…
Q: A shopkeeper sells an customer. If the shopk O a RO 620 Oa. Ob. RO 920 OC RO 720 O d. RO 900
A: Value-added tax (VAT) is an indirect tax paid on goods and services for value-added at every point…
Q: Assume that you are a loyal customer from Lanuit Coffee and you always buy Americano coffee from…
A: I will choose lanuit coffee because it is cheaper than other store coffee products. Happy coffee…
Q: Suppoee at the cument level of production a firm's marginal revenue equals 51.00, their average…
A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…
Q: According to information in Table Cost.1.2 where loans are used for establishing the firm,…
A: Accounting profit = total revenue – Explicit cost Economic profits = Accounting profit – Implicit…
Q: Suppose a firm has a retention ratio of 59 percent and net income of $9.3 million. How much does it…
A: here we calculate the payment of dividend and confirm the answer by using two methods which are as…
Q: The De Beers Diamond company is not worried about differentiating its product from all other…
A: Market refers to the place where buyers and sellers meet each other and they trade.
Q: Lexil Company is an Australian multi-national company specialized in textile industry like Benetton…
A: The businesses have several considerations regarding the activities and events that they carry out,…
Q: D Consi der Hhe fallowing Cournet medel. » The inverse femand function is given bj p= 30-@ where Q =…
A: For this problem we need result from the previous parts as well. Reaction functions, Firm 1:…
Q: Suppose that you decide to play a game. You buy stockby throwing a dice a few times, using that…
A: The efficient-market hypothesis is a theory in the field of financial economics. It states that…
Q: what three factors would influence your evaluation as to wheter a company's current ratio is good or…
A: The current ratio of company = the current asset divided by current liabilities. Mostly the current…
Q: ACTIVITY 3 1. You were given the following capital balances of the partners of thePinnacle Trading:…
A: answer is given below
Q: Solve the attachment.
A: Given Information: base year =2006 base year weight = 100,000 current year= 2008 current year…
Q: ou have determined that a firm’s dividends should grow at 9% on average in the foreseeable future…
A: Given Current dividend = 4 $ Growth rate = 9 % Required rate of return = 20 % Next dividend = 4 $ *…
Q: wo local ready-mix cement manufacturers, Here and There, have combine lemand given by Q = 105 – P.…
A: Here two local ready -mix cement manufacturers.we have to find maximum joint profits by summing each…
Q: 10. Calculate the current ratio of Roberts Manufacturing 1. 0.60 2. 1.00 3. 1.25 4. 1.44
A: A balance sheet is a financial statements that shows the summarised version of of each and every…
Q: 3. The Ajax Corporation has the following set of projects available to it: PROJECT INVESTMENT…
A: Answer: For each additional investment project undertaken, the expected rate of return on the…
Step by step
Solved in 4 steps
- Tropical Leisure Limited Tropical Leisure Limited has been making high quality Caribbean leisure wears for over twenty-fiveyears, in old rented premises located in the heart of the Barbadian capital of Bridgetown. Thecompany has a flexible labour force of about twenty employees and three directors, only one ofwhom, namely Mr. Grant, the managing director, is fully active in the business.The company specializes in leisure and swim wear garments. Their current range consists of teeshirts, shorts, skirts and bath suits in rich vibrant Caribbean colours and styles for men, women andchildren. The company capacity is 400-500 garments per week, depending on style and continuityof the production run, but additional floor space and machines could be brought in quickly to raiseproduction levels to a maximum of 1000 garments weekly if required.Trade sources estimated that the Barbadian market was valued at US$ 1.5 billion in 2010 but sincethen inflation and recession has deflated the market,…Warehouse EfficiencyPersonal Care Limited(PCL) is a large and premier FMCG company in India with a turnoverof about Rs 2000 crore. It has 85 production plants spread over the whole country, producingabout 1200 products ranging from personal care to household goods.The company has four of its own mother warehouses situated in the four zones of north, south,east and west that receive products from almost all the plants on a regular and consignmentbasis in containers by road. These warehouses are responsible for taking care of stocks, orderplacement for next arrivals, loading and unloading, protective storage, stock recording, apartfrom order processing and trans-shipment of goods to C&F agents of respective zone whosenumbers come around 150 per warehouse.After receiving goods from various plants, these warehouses are first entered into the computerfor inventory recording purposes. Suitable storage location spaces are then assigned after takinginto consideration the quantity to be…Subpart D to be answered 1. Assuming that the product’s price is P58 per pack, should the competitor sell in the short-runWhy or why not?If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)?What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack?A. Assuming that the product price is P42 per pack, answer the same questions in letter A.B. Because of increasing sellers of masks in the market, the product’s price further decreased to P32per pack. Again, answer the same questions in letter A.C. When is this seller going to shut down?D. Now generate the seller’s supply curve of mask in the short run.
- You are the President of AMT Enterprises. You have the opportunity to expand your product line to include a new semi-conductor wafer fabrication line. In order to produce the new wafer, you must invest in a new production process. In addition to doing nothing (DN), two mutually exclusive processes are currently available to produce the wafer. Should you produce this new wafer? In other words, which.. if either, of the alternative processes should be chosen? Note: IRR for Alternative I = 15.7%, and IRR for Alternative II = 19.2%. Assume that the capital investment for each alternative occurs at year 0 and that the annual revenues and expenses first occur at the end of year 1. Use the incremental IRR method to justify your decision. Your company's MARR is 15%. Click the icon to view the alternatives description. More Info Which alternative would you choose as a base one? Choose the correct answer below. OA. Do nothing OB. Alternative I ○ C. Alternative II Capital Investment Annual…With millions of passengers selecting air travel to reach their intended destinations, CaribbeanInternational Airlines has cornered the market by providing competitive fares, consistent customerservice and excellent returns for investors. The Chief Executive Officer has stated that thecompany wants to ensure that Caribbean nationals in the diaspora have easy and affordable accessto an airline with exceptional customer service. This airline caters to middle to high income earnerswho like to travel for adventure or relaxation. Priding itself as an affordable carrier with bargainfares, its mission is “Making air travel hassle free, reliable, economical and comfortable, we striveto transport our passengers safely to their chosen destinations.” The company has employees frommainly the Caribbean and North America who understand the needs and demands of their clientele.The company intends to expand travel services from various Caribbean destinations and Miami toother locations like New York,…7. Sources of uncertainty of MNC's Cash Flows Consider a U.S.-based MNC parent, Triloo Inc., that owns subsidiaries in the France, Mexico, and Australia. Suppose that the economy in France strengthens, leading to a higher national income. This higher national income in France will most likely denoted in euros and the demand for Triloo products, leading to in the value of Triloo Inc. This example is best classified as a case of exposure to Suppose that Triloo Inc. expects cash flows from its French subsidiaries of 17,000,000 euros at the end of the current time period. Management at Triloo forecasts the exchange rate to be $1.90 per euro at the end of this time period. This means that Triloo will have an estimated in cash flows from French subsidiaries at the end of the current time period. Suppose that, after further analysis, management at Triloo now forecasts the euro to weaken against the dollar. Triloo expects the exchange rate at the end of the current time period to be $1.50 per…
- A large mountain area in Western Norway has very favorable wind conditions and opportunity to establish a wind farm for the production of electric power which can be sold in the European power market. The company Power has previously gained the exclusive right to develop the area for power production. Let x be the number of dmøller set up in the area. The area is used by many people as recreation area, and is close to a major city. Power's profit depends on how many wind turbines set up. Let the profit be given by IP (X) = 100x - 5x 2 Two groups are negatively affected by the wind turbine development, the local population gen and the local tourism industry that sells adventure travel to foreign countries tourists. The value of the local population of the area given by the following function 1 V L (x) = V 0 - 30x - X 2 2 The tourism industry's profit is given by the following function πτ(x) πο- 10x- 1 X 23. Markland Manufacturing manufactures desk lamps intends to increase capacity by obtaining newequipment. Two vendors have presented proposals. The purchase cost for proposal A is $30,000,and for proposal B, $80,000. Each proposal will produce lamps of the same quality. Proposal Ais expected to produce lamps at $15.00/lamp, while proposal B is significantly more efficient andwill produce them at $10.00/lamp. The revenue generated by the sale of each lamp is $20.00/unit.a. Plot, on the same graph, the lines describing the potential revenue from each proposal.b. What is the break-even point in lamps for proposal A?c. What is the break-even point in lamps for proposal B?d. What is the point of indifference?e. The manufacturer expects to sell 12,000 lamps and has informed the vendors that it has chosen proposal B. The vendor of proposal A has offered to re-negotiate the purchase price of its proposal in order to winCONVEX Ltd. is a new company that was established on 1st January, 2020 to oversee the production of coronavirus vaccines for Ghana. On 1st July, 2020, CONVEX Ltd. acquired 75% shares in CONCAVE Ltd., a pharmaceutical company, to speed up the vaccine production. As a new graduate from UGBS, CONVEX Ltd. has employed you as their accountant. At a management meeting held, a number of issues were raised about how CONVEX Ltd. should deal with its transactions and investment in CONCAVE Ltd. and the need to conduct financial ratio analysis to determine the profitability and sustainability of CONCAVE Ltd. In a memo to management, provide your views on how the following issues should be addressed. Issue DAssuming you have done the financial ratio analysis and you have realized that profitability is looking good but liquidity is not impressive and needs urgent attention. What do you think could be the problem with CONCAVE Ltd. that your company needs to help them address?
- Question An incumbent firm Pilly has a product that works well but has the possibility of causing side-effects to users. Both Pilly and an upstart firm Smirck are having the opportunity to develop a new product without the side effects. The following table shows the expected net return (after considering R&D costs, probability of success in product development, and future profits) for each firm under different scenarios. Smirck Invest Smirck Not Invest Pilly: $2.4 m Smirck: -$0.1 m. Pilly Invest Pilly: $4.9 m Smirck: $0 Pilly Not Invest Pilly: $3 m Smirck: $0.4 m Pilly: $5 m Smirck: $0 Assume that the two firms simultaneously choose whether to invest or not. What is the Nash Equilibrium of this game (that is, the action choices of the two firms in the Nash Equilibrium)? Would your answer be different if Pilly is the first mover and commits to its choice before Smirck makes its response (that is, a sequential-move game)? Equilibrium in the simultaneous-move game (No need for…4 57806310882... Questions 1. Discuss briefly about: 1.1. The importance of financial management in construction project management 1.2.The purpose of investment appraisal in construction industry •..A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to increase cash flows in the first year by S25,000 and in the second year by $30,000. The firm's current fixed costs are $9,000 and current marginal cost are S15. The firm currently charges S18 per unit. If the interest is 5%, should the firm undertake the investment? O a. Yes, since NPV=0 O b. Yes, since NPV0 O d. No, since NPV=0