Cost of common stock equity   Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$49.39. The firm just recently paid a dividend of ​$3.99. The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$3.04. After underpricing and flotation​ costs, the firm expects to net ​$43.96 per share on a new issue. a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, Nn​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, r Subscript s​, which should equal the cost of retained​ earnings, r Subscript r. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, r Subscript n. a.  The average annual dividend growth rate over the past 5 years is?

1. Match with the proper definition

A. CFO

B. Fixed Cost

C. Indirect Cost

D. Management by exception

E. Non - Controllable Cost

F. Opportunity Cost

G. Sunk Cost

H. Supply Chain Management Systems

I. Value Chain

J. Variable Cost

_____The benefits forgone when one alternative is selected over another

_____Organize the activities between a company and its suppliers

_____A cost that does not change, in total, with changes in the level of business activity

_____investigating departures from the plan that are significant

_____ A cost that was incurred in the past

_____A cost that cannot be easily traced to a particular cost object

_____A cost that does not change on per unit basis with changes in the level of business activity

_____The senior executive responsible for accounting and financial operations

_____ A company internal operations and its relationships and interactions with suppliers and customers

_____ A cost that a manager cannot Influence

Cost of common stock equity   Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$62.48. The firm just recently paid a dividend of ​$4.01. The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$3.01. After underpricing and flotation​ costs, the firm expects to net ​$57.48 per share on a new issue. a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, Nn​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, r Subscript s​, which should equal the cost of retained​ earnings, r Subscript r. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, r Subscript n.

Procurement cost analysis

-Describe the process of strategic/ tactical sourcing

-Explain how to approach cost analysis of specific category (i.e. supply chain function

Cost Benefit Analysis over 10 years

Do a cost benefit analysis to decide wheteher to switch from a gas car to an electric car.

HINT: Make cash flow table for 10 years reflecting the total savings of switching from gas car to electric car

The government is offering an incentive of $11,000 for trading your gas car in and buying an electric vehicle

Assume that cost of gas will increase by 5% each year

You must include NPV and IRR for both comparisons in excel AND make a reccommendation

Interest rate = 4.50%

(you are free to make any other assumtions or rates you make, but be sure to clearly list them)

Cost of Production Report: Average Cost Method

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.

4) Cost per equivalent unit of direct materials and conversion

Total Cost Method of Product Pricing

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 6,500 units of cell phones are as follows:

Smart Stream desires a profit equal to a 15% return on invested assets of $702,520.

a. Determine the total cost and the total cost amount per unit for the production and sale of 6,500 units of cellular phones. Round the cost per unit to two decimal places.

b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.
??? %

c. Determine the selling price of cellular phones. Round to the nearest cent.
$ ??? per cellular phone

3.         Explain why average total cost and average variable cost tend to get closer as output increases. Will the curves ever meet? Why or why not?

Swedish Takeout

In this mini-case, IKEA is expanding internationally via franchising and other means. This case focuses on efforts in the United States, Europe, and Russia.

Expanding markets around the world have increased competition for all levels of international marketing. Cost containment, customer satisfaction, and a greater number of players mean that every opportunity to refine international business practices must be examined in light of company goals. Collaborative relationships, strategic international alliances, strategic planning, and alternative market-entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global management.

Here we focus on a variety of alternative market-entry strategies, including exporting, licensing, franchising, strategic alliances, and direct foreign investments.

Read the case below and answer the questions that follow.

Fifty years ago in the woods of southern Sweden, a minor revolution took place that has since changed the concept of retailing and created a mass market in a category where none previously existed. The catalyst of the change was and is IKEA, the Swedish furniture retailer and distributor that virtually invented the idea of self-service, takeout furniture. IKEA sells reasonably priced and innovatively designed furniture and home furnishings for a global marketplace.

The name was registered in Agunnaryd, Sweden, in 1943 by Ingvar Kamprad—the IK in the company’s name. He entered the furniture market in 1950, and the first catalog was published in 1951. The first store didn’t open until 1958 in Almhult. It became so incredibly popular that a year later the store had to add a restaurant for people who were traveling long distances to get there.

IKEA entered the United States in 1985. Although IKEA is global, most of the action takes place in Europe, more than 70 percent of the firm’s $36 billion in sales. Nearly one-fourth of that comes from stores in Germany. This level compares with only about $5 billion in NAFTA countries. The firm has stores in more than 40 countries around the world.

One reason for the relatively slow growth in the United States is that its stores are franchised by Netherlands-based Inter IKEA Systems, which carefully scrutinizes potential franchisees—individuals or companies—for strong financial backing and a proven record in retailing. The IKEA Group, based in Denmark, is a group of private companies owned by a charitable foundation in the Netherlands; it operates more than 350 stores. The Group also develops, purchases, distributes, and sells IKEA products, which are available only in company stores.

1. The fact that IKEA has stores in more than 40 countries around the world and sells to many markets likely means that the company experiences benefits of global marketing? List four benefits and explain.

2. The fact that Ikea strives to lower costs, minimizes materials and packing, and has catalogs that are completely recyclable shows what type of company commitment?