Question
In: Finance
Year A &nbs
Year A
B
0 -8,000 -8,000
1 4,500 1,900
2 4,200 3,000
3 1,800 4,000
4 1,600 5,000
Which project would you select if you used the payback, NPV and IRR
methods using a 15% discount rate and why?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Year A &nbs
Year A B
0 -75,000 -75,000
1 40,000
10,000
2 27,000
15,200
3 20,000 67,967
By how much should the cost of capital (discount rate) for the
losing project (based on NPV) be increased or decreased in order
for it to be selected over the winning project (based on NPV)?
Year Dividend 2007 $ 0.02 2008 $ &nbs
Year
Dividend
2007
$
0.02
2008
$
0.03
2009
$
0.04
2010
$
0.05
2011
$
0.06
current
stock price
$10.00
Number of
stock shares
400,000
Debt/Equity ratio
0.75
Interest
Paid
240,000
tax
rate
36%
Part A. Estimate the constant annual compounding growth
rate based on the dividends 2007 through 2011.
Growth
rate
Part B. Use the Gordon dividend model to estimate the
cost of equity
Cost of
equity
B. Calculate the WACC
Cost of
debt
WACC
Complete the horizontal analysis below: Year 2 &nbs
Complete the horizontal analysis below:
Year 2
Year 1
Amount
Change
Percentage Change
$88,
338
$92,147
???
???
A. ($3,809), 4.1%
B. $3,809, 4.1%
C. $180,485, 51.1%
D. $8,300, 15%
E. None of these
TASK &nbs
TASK
1. Choose any Omani organization and write briefly about its
corporate social responsibility activities or strategies.(400-500
words). If you are part of the decision making body of this
organization, what type of new activity (towards social
responsibility) you would like to
add?
(5+5=10 Marks)
2. Compare between Omnipotent view of management and
symbolic view of
management.
3. Describe workplace spirituality. Identify its characteristics of
a spiritual organization and its
benefits.
(1+2+2=5 Marks)
4. Explain workers compensation. How to...
Name: &nbs
Name:
.
A manager of a local clothing retail store wants to make a sales
and promotion plan for next month. In order to evaluate the
effectiveness of the plan, the manager identifies all the costs and
other relevant information and conducts Break-even analysis. Here
are the identified costs and other related information.
Monthly rent fees: $2,500
Wages for the hired employees (Monthly): $6,000
Utility fees (Monthly): $700
Other operation costs (Monthly): $1,000
Purchase price per unit: $78 (The manager...
Question2: &nbs
Question2:
A manager use his company profit time series for one goods to
calculate forecast for upcoming years. He use
F1 = Moving Average Method for 3 years
F2 = Weight Moving Average for 3 years
F3 = Exponential Smoothing Method with α = 0.2
F4 = Exponential Smoothing Method with α = 0.7
His calculation represent in the following table. Gide the
manager to chose the better method by calculate MAD and MES for
each method
t
y...
DATE &nbs
DATE Ending
Inventory(end of year
prices)
Price Index
December 31,
2013
$
69,400
100
December 31,
2014
102,080
116
December 31,
2015
110,208
128
December 31,
2016
123,816
132
December 31,
2017
116,058
138
Use the dollar-value LIFO method to compute the ending inventory
for Shamrock Company for 2013 through 2017.
Ending Inventory
2013 - 69400
2014 - ?
2015 - ?
2016 - ?
2017- ?
Question 5 &nbs
Question 5
Julian and Jenna carry on a partnership business and for the
income year ended 30 June, the partnership net income was $38,000,
as returned by their accountant. However, included in the
deductions was a salary of $12,000 paid to Julian’s wife (who is
not a business partner). The Commissioner disallows all but $2,000
of this amount.
Required:
What authority, if any, does the Commissioner have in
disallowing the claim for salary? (2.5 marks)
ANSWER:
What course of...
Question 1 &nbs
Question 1
2 Marks
Briefly explain the referential integrity rule. Provide a
suitable situation when the referential integrity constraint is
violated.
Question
2
2 Marks
This question refers to the Part table as used in this unit
lecture slides about the customers to order homeware parts. Using
SQL DCL command to write a statement to permit a user with the log
in ID of JOHNSON to access the Part table and update its UnitPrice
value.
Question 3
2...
Question 3 &nbs
Question 3
Prints Galore Ltd., a Canadian company, acquired 100% of
Sculptures Ltd. for FC 300,000 on January 1, 2014. Prints Galore’s
functional currency is the Canadian dollar and Sculpture’s
functional currency is the FC. Selected exchange rates are
presented below:
January 1,
2014
FC1 =
$1.6993 CAD
December 31,
2015
FC1 = $1.7182 CAD
December 31,
2016
FC1 = $1.7233 CAD
Assume that the average rate for 2014, 2015, and 2016 is FC 1...
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