Method used – incremental (historically based on prior year's expenses), zero-based, or other? 5. What is the budget period (what "fiscal year" is used)? 6. What negotiations take place in the finalization of the budget? 7. At what levels in the organization are budgets managed? To whom are budget monitoring reports issued? How are budget variances handled?

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $55,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 4%. He currently has $190,000 saved, and he expects to earn 8% annually on his savings.

How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations. Round your answer to the nearest cent.

The Bigbee Bottling Company is contemplating the replacement of one of its bottling machines with a newer and more efficient one. The old machine has a book value of $550,000 and a remaining useful life of 5 years. The firm does not expect to realize any return from scrapping the old machine in 5 years, but it can sell it now to another firm in the industry for $265,000. The old machine is being depreciated by $110,000 per year, using the straight-line method.

The new machine has a purchase price of $1,125,000, an estimated useful life and MACRS class life of 5 years, and an estimated salvage value of $145,000. The applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. It is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $220,000 will be realized if the new machine is installed. The company's marginal tax rate is 35%, and it has a 12% WACC.

1. What initial cash outlay is required for the new machine? Round your answer to the nearest dollar. Negative amount should be indicated by a minus sign.
   $
2. Calculate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense if the replacement is made. Round your answers to the nearest dollar.

   Year	Depreciation Allowance, New	Depreciation Allowance, Old	Change in Depreciation
   1	$	$	$
   2
   3
   4
   5

3. What are the incremental net cash flows in Years 1 through 5? Round your answers to the nearest dollar.

   Year 1	Year 2	Year 3	Year 4	Year 5
   $	$	$	$	$

d. Should the firm purchase the new machine?

16. Uneven cash flows

A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply.

Consider the following case:

The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years:

The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? (Note: Do not round your intermediate calculations.)

$1,692,500

$467,500

$1,475,000

$1,051,448

Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments:

Suppose your company needs to raise $40.7 million and you want to issue 20 year bonds for this purchase. Assume the required return on your bond issue will be 5.7 percent semiannual coupon bond and a zero coupon bond. Your company's tax rate is 22 percent. Assume that the IRS amortization rules apply for the zero coupon bonds. Calculate the firm's aftertax cash outflows for the first year under the two different scenarios?

You’ve collected the following information from your favorite financial website. 52-Week Price Stock (Div) Div Yld % PE Ratio Close Price Net Chg Hi Lo 64.60 47.80 Abbott 1.12 1.9 235.6 62.91 −.05 145.94 70.28 Ralph Lauren 2.50 1.8 70.9 139.71 .62 171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19 91.80 71.96 Duke Energy 3.56 4.9 17.6 74.30 .84 113.19 96.20 Disney 1.68 1.7 15.5 ?? .10 According to your research, the growth rate in dividends for Ralph Lauren for the next 5 years will be .5 percent. If investors feel this growth rate will continue, what is the required return for the company’s stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Boston Engineering is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $495,000, annual operating costs of $28,000, and a 3-year life. Machine B costs $302,000, has annual operating costs of $45,000, and a 2-year life. The firm currently pays no taxes. Which machine should be purchased and why?

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $5.96 per share dividend in 8 years and will increase the dividend by 0.05 per year thereafter. If the required return on this stock is 0.14, what is the current share price? Answer with 2 decimals

You buy 100 shares of stock at $20 per share on margin of 40 percent.  If the price of the stock rises to $40 per share, what is your percentage gain in equity?  Disregard interest costs.

PLEASE TYPE OUT

Why is customer service important between a salesperson and a client?

What do customer service is lacking in so many companies today?

explain in full detail

American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Currently it targets a 50-50 mix of debt and​ equity, but it is considering a target capital structure with 70​% debt. American Exploration currently has 5​% ​after-tax cost of debt and a 10​% cost of common stock. The company does not have any preferred stock outstanding.

a.  What is American​ Exploration's current​ WACC?

b.  Assuming that its cost of debt and equity remain​ unchanged, what will be American​ Exploration's WACC under the revised target capital​ structure?

c.  Do you think shareholders are affected by the increase in debt to 7070​%? If​ so, how are they​ affected? Are the common stock claims riskier​ now?

d.  Suppose that in response to the increase in​ debt, American​ Exploration's shareholders increase their required return so that cost of common equity is 14​%. What will its new WACC be in this​ case?

e.  What does your answer in part d suggest about the tradeoff between financing with debt versus​ equity?

Explain the benefits and limitations of using :

(1) Capital Asset Pricing Model to calculate cost of equity

(2) Dividend growth model to calculate cost of equity

(3) bond plus risk premium model to calculate cost of equity

Provide a well detail answer and no copy and paste.

Using the data in the table to the​ right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.

What is the return for the entire period? Round two decimal places