Year 1 2 3 4 5 Free Cash Flow $22 million $24 million $30 million $31 million $35 million XYZ Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 3% per year. If the weighted average cost of capital is 8% and XYZ has cash of $18 million, debt of $35 million, and 74 million shares outstanding, what is General Industries' expected current share price? Round to the nearest one-hundredth.
In: Finance
discuss two of ethical and corporate social responsibility practices examples the Shell company did, and how they positively affected the company revenue and benefit it in term of increasing profits?
In: Accounting
To determine how much money you have to invest, add up the investment for the 4 projects. Multiple this total by 80% to get how much money your company has to spend. Choose the best combination of projects for the company to invest in. Show one break even analysis.
Total Investment = $198420.19
Projects:
#1
Invest $60000 in a 3D Printer
Training and installation $10000
Revenue per year $18000
Cost per year $3000
Market Value year 11 $30000
#2
Invest 42276 Euros in a Flow Jet Cutter
Installation $8000
Revenue per year $14000
Cost per year $4000
Market Value year 11 $15000
#3
Invest $40000 bar coding system
Setup, training $10000
Labor savings 1st year $15000 +3%/year
Cost per year $2500
Market Value year 11 $14000
#4
Invest $88000 in an Engineering software simulation tool
Training $12000
Revenue per year $27000
Cost per year $5000
Market Value year 11 $25000
#5
Invest 20325 Euros in a conveyor
Install $5000
Savings 1st year $11000, plus 3%/year
Cost per year $4000
Market Value year 11 $25000
#6
Invest $53000 in an automated inspection tool
Calibration, setup $12000
Savings 1st year $19000 plus 3%/year
Cost per year $5000
Market Value year 11 $25000
#7
Invest $82000 in packaging equipment
Installation $8000
Revenue 1st year $22000, + 4% per year
Cost per year $4500
Market Value year 11 $35000
#8
Invest 15477 Euros in automated paint box
Training $1000
Savings 1st year $7000 plus 3%/year
Cost per year $3500
Market Value year 11 $20500
From the Finance Department:
The following information is for all the projects:
11 Year life
MACRS GDS 7 year property
Federal Corporate Tax Rate = 21%
State Corporate Tax Rate = 6.3291%
Use current currency exchange rate as needed
Use inflation rates given
In: Finance
QUESTION 19
Was her guess reasonable? Assume 95% confidence. (Hint: You may use either a confidence interval or hypothesis test to help you answer this question.)
|
A. |
Yes, her guess was reasonable. |
|
|
B. |
No, her guess was not reasonable. |
QUESTION 20
Was his guess reasonable? Assume 95% confidence. (Hint: You may use either a confidence interval or hypothesis test to help you answer this question.)
|
A. |
Yes, his guess was reasonable. |
|
|
B. |
No, his guess was not reasonable. |
QUESTION 21
Was his guess reasonable? Assume 95% confidence. (Hint: You may use either a confidence interval or hypothesis test to help you answer this question.)
|
A. |
Yes, his guess was reasonable. |
|
|
B. |
No, his guess was not reasonable. |
In: Statistics and Probability
Bob’s Pizza serves 2,000 customers per month. Each customer orders food and a beverage.
Revenues are $48 for food and $10 for beverages per customer. Variable costs are $16 for food and $2 per beverage per customer. Fixed costs are $50,000 monthly.
1. What is the monthly profit?
2. What is the customer breakeven each month?
Bob’s customers are starting to use UberEats. Bob’s pays $12 to UberEats for each delivery and they only deliver food not beverages.
3. If 10% of Bob’s customers start using UberEats, making it 1,800 customers in person and 200 UberEats customers. What will Bob’s profit each month be?
4. $20,000 per month is the minimum profit that Bob’s wants to make to keep operating. They have 2,000 customers, split between in store and UberEats. What is the largest number of UberEats customers that they can have to keep operating?
In: Accounting
A queueing system serves two types of customers. Type 1 customers arrive according to a Poisson process with a mean rate of 5 per hour. Type 2 customers arrive according to a Poisson process at a mean rate of 3 per hour. The system has two servers, both of which serve both types of customers. All service times have an exponential distribution with a mean of 10 minutes. Service is provided on a first-come-first-served basis. a. What is the probability distribution of the time between consecutive arrivals of customers of any type, what is its mean? b. Assume that when a Type 2 customer arrives, he finds two Type 1 customers being served and no other customers in the system. What is the probability distribution of this Type 2 customer’s waiting time in the queue and it mean?
In: Operations Management
The data from data105.dat contains information on 78
seventh-grade students. We want to know how well each of IQ score
and self-concept score predicts GPA using least-squares regression.
We also want to know which of these explanatory variables predicts
GPA better. Give numerical measures that answer these questions.
(Round your answers to three decimal places.)
(Regressor: IQ) R 2 =
(Regressor: Self-Concept) R 2 =
obs gpa iq gender concept 1 7.94 101 2 44 2 8.292 120 2 57 3 4.643 114 2 49 4 7.47 106 2 68 5 8.882 116 1 82 6 7.585 107 2 58 7 7.65 101 2 73 8 2.412 81 2 22 9 6 109 1 39 10 8.833 110 2 66 11 7.47 99 1 75 12 5.528 104 1 47 13 7.167 101 2 59 14 7.571 104 1 71 15 4.7 108 1 44 16 8.167 106 1 44 17 7.822 105 1 73 18 7.598 104 1 76 19 4 95 2 41 20 6.231 102 1 46 21 7.643 111 2 52 22 1.76 119 2 44 24 6.419 111 1 48 26 9.648 104 2 60 27 10.7 115 1 44 28 10.58 138 2 50 29 9.429 115 2 59 30 8 108 2 69 31 9.585 115 2 56 32 9.571 118 1 49 33 8.998 121 1 63 34 8.333 119 1 60 35 8.175 123 2 69 36 8 96 2 40 37 9.333 108 1 53 38 9.5 111 2 70 39 9.167 131 2 47 40 10.14 126 1 76 41 9.999 112 1 67 43 10.76 122 2 91 44 9.763 134 2 87 45 9.41 103 2 65 46 9.167 116 2 67 47 9.348 101 2 83 48 8.167 112 2 74 50 3.647 95 2 56 51 3.408 73 1 47 52 3.936 80 2 33 53 7.167 121 2 50 54 7.647 111 2 61 55 .53 81 2 27 56 6.173 106 2 46 57 7.295 117 2 74 58 7.295 112 1 69 59 8.938 98 1 68 60 7.882 102 1 51 61 8.353 114 2 58 62 5.062 116 2 56 63 8.175 123 2 50 64 8.235 91 2 64 65 7.588 102 2 38 68 7.647 115 2 44 69 5.237 105 1 40 71 7.825 86 2 75 72 7.333 111 1 57 74 9.167 116 2 50 76 7.996 106 2 40 77 8.714 118 1 68 78 7.833 114 1 71 79 4.885 102 2 65 80 7.998 131 1 55 83 3.82 98 2 31 84 5.936 111 1 57 85 9 117 1 56 86 9.5 111 1 53 87 6.057 97 2 58 88 6.057 110 1 43 89 6.938 121 2 43
In: Statistics and Probability
D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 2016, are as follows: Cash, $30,000; Accounts Receivable, $76,000; Supplies, $10,000; Land, $43,000; Accounts Payable, $32,500; Common Stock, $50,000. Business transactions during July are summarized as follows:
| A. | Joel Palk invested additional cash in exchange for common stock with a deposit of $23,000 in the business bank account. |
| B. | Purchased land adjacent to land currently owned by D'Lite Dry Cleaners to use in the future as a parking lot, paying cash of $35,000. |
| C. | Paid rent for the month, $3,200. |
| D. | Charged customers for dry cleaning revenue on account, $73,000. |
| E. | Paid creditors on account, $19,800. |
| F. | Purchased supplies on account, $8,000. |
| G. | Received cash from cash customers for dry cleaning revenue, $37,000. |
| H. | Received cash from customers on account, $75,000. |
| I. | Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $29,050. |
| J. | Paid the following: wages expense, $25,000; truck expense, $2,900; utilities expense, $1,300; miscellaneous expense, $1,400. |
| K. | Determined that the cost of supplies on hand was $9,300; therefore, the cost of supplies used during the month was $8,700. |
| L. |
Paid dividends, $7,000. |
| Required: | |
| 1. Determine the amount of retained earnings as of July 1 of the current year. | |
| 2. The assets, liabilities, and stockholders’ equity as of July 1 are stated in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns effected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered. | |
| 3.a. Prepare an income statement for the month ended July 31, 2016. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the income statement. | |
| 3.b. Prepare a retained earnings statement for the month ended July 31, 2016. Refer to the lists of Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word “Less” or “Add” is not needed in the Retained Earnings Statement. | |
| 3.c. Prepare a balance sheet as of July 31, 2016. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. | |
| 4. Prepare a statement of cash flows for July. Enter amounts that represent cash outflows as negative numbers using a minus sign. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) or the word Deduct on the statement. |
In: Accounting
The following information applies to the questions displayed below.] The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Account Title Debits Credits Cash 5,000 Accounts receivable 2,000 Inventory 5,000 Equipment 11,000 Accumulated depreciation 3,500 Accounts payable 3,000 Common stock 10,000 Retained earnings 6,500 Sales revenue 0 Cost of goods sold 0 Salaries expense 0 Rent expense 0 Advertising expense 0 Totals 23,000 23,000
The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $3,500. The cost of the merchandise was $2,000. The company uses the perpetual inventory system. 2 Purchased equipment on account for $5,500 from the Strong Company. 4 Received a $150 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $5,000. The cost of the merchandise was $2,800. 10 Purchased merchandise on account for $9,500. 13 Purchased equipment for cash, $800. 16 Paid the entire amount due to the Strong Company. 18 Received $4,000 from customers on account. 20 Paid $800 to the owner of the building for January's rent. 30 Paid employees $3,000 for salaries for the month of January. 31 Paid a cash dividend of $1,000 to shareholders.
In: Accounting
The following information applies to the questions displayed below.] The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020. Account Title Debits Credits Cash 5,000 Accounts receivable 2,000 Inventory 5,000 Equipment 11,000 Accumulated depreciation 3,500 Accounts payable 3,000 Common stock 10,000 Retained earnings 6,500 Sales revenue 0 Cost of goods sold 0 Salaries expense 0 Rent expense 0 Advertising expense 0 Totals 23,000 23,000
The following transactions occurred during January 2021: Jan. 1 Sold merchandise for cash, $3,500. The cost of the merchandise was $2,000. The company uses the perpetual inventory system. 2 Purchased equipment on account for $5,500 from the Strong Company. 4 Received a $150 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $5,000. The cost of the merchandise was $2,800. 10 Purchased merchandise on account for $9,500. 13 Purchased equipment for cash, $800. 16 Paid the entire amount due to the Strong Company. 18 Received $4,000 from customers on account. 20 Paid $800 to the owner of the building for January's rent. 30 Paid employees $3,000 for salaries for the month of January. 31 Paid a cash dividend of $1,000 to shareholders.
In: Accounting