Early in the 2020, Baladna Co. prepared an expansion plan. The plan requires an increase in in both property, plant and equipment and inventory by $190,000,000 and $10,000,000 respectively. The following three alternative financing plans have been suggested by the firm’s investment bankers:
Plan I: issue preferred stock at par.
Plan II: issue common stock at $10 per share.
Plan III: issue a 16% long-term bonds, due in 20 years, at par ($1,000).
Changes resulting from the three alternative plans give the following earnings per share (EPS): Plan A—0.73, Plan B—0.69, and Plan C—0.73. Based on this information, what are the main advantages and disadvantages of each plan?
Stockholders’ equity: |
Preferred stock ($100 par, 10% cumulative, 500,000 shares |
authorized and issued) 50,000 |
Common stock ($1 par, 200,000,000 shares authorized, |
100,000,000 issued) 100,000 |
Premium on common stock 120,000 |
Retained earnings 137,000 |
Total liabilities and stockholders’ equity $600,000 |
Income Statement |
For the Year Ended December 31, 2019 |
(in thousands except earnings per share) |
Sales $936,000 |
Cost of sales 671,000 |
Gross profit $265,000 |
Operating expenses: |
Selling $62,000 |
General 41,000 103,000 |
Operating income $162,000 |
Other items: |
Interest expense 20,000 |
Earnings before provision for income tax $142,000 |
Provision for income tax 56,800 |
Net income $ 85,200 |
Earnings per share $ 0.83 |
In: Accounting
Early in the year, John Raymond founded Raymond Engineering Co. for the purpose of manufacturing a special flow control valve that he had designed. Shortly after year-end, the company’s accountant was injured in a skiing accident, and no year-end financial statements were prepared. However, the accountant had correctly determined the year-end inventories at the following amounts. | ||||||||||||||||||
Ending Inventory | Beginning Inventory | |||||||||||||||||
Materials | 46,000 | - | ||||||||||||||||
Work in process | 31,500 | - | ||||||||||||||||
Finished goods (3,000 units) | 88,500 | - | ||||||||||||||||
As this was the first year of operations, there were no beginning inventories | ||||||||||||||||||
While the accountant was in the hospital, Raymond improperly prepared the following income statement from the company's accounting records: | ||||||||||||||||||
Net sales | 610,600 | |||||||||||||||||
Cost of goods sold: | ||||||||||||||||||
Purchases of direct materials | 181,000 | |||||||||||||||||
Direct labor costs | 110,000 | |||||||||||||||||
Manufacturing overhead | 170,000 | |||||||||||||||||
Selling expenses | 70,600 | |||||||||||||||||
Administrative expenses | 132,000 | |||||||||||||||||
Total costs | 663,600 | |||||||||||||||||
Net loss for year | (53,000) | |||||||||||||||||
Raymond was very disappointed in these operating results. He stated, “Not only did we lose more than 50,000 this year, but look at our unit production costs. We sold 10,000 units this year at a cost of 663,600; that amounts to a cost of 66.36 per unit. I know some of our competitors are able to manufacture similar valves for about 35 per unit. I don’t need an accountant to know that this business is a failure.” | ||||||||||||||||||
Instructions | ||||||||||||||||||
If the company has earned any operating income, assume an income tax rate of 30 percent. (Omit earnings per share figures.) | ||||||||||||||||||
d. Explain whether you agree or disagree with Raymond’s remarks that the business is unprofitable and that its unit cost of production (66.36, according to Raymond) is much higher than that of competitors (around 35). If you disagree with Raymond, explain any errors or shortcomings in his analysis.
|
In: Accounting
1) The boiling point of an aqueous solution is 101.98 ∘C. What is the freezing point? Consult the table of colligative constants.
freezing point: °C
2)
Quinine is a natural product extracted from the bark of the cinchona tree, which is native to South America. Quinine is used as an antimalarial agent.
When 0.829 g of quinine is dissolved in 25.0 g of cyclohexane, the freezing point of the solution is lowered by 2.13 ∘C. Look up the freezing point and Kf constant for cyclohexane in the Colligative Constants table.
Calculate the molar mass of quinine.
molar mass:
g/mol
3)
If a 0.770 m aqueous solution freezes at −2.30 ∘C, what is the van't Hoff factor, i, of the solute?
Consult the table of Kf values.
i=
In: Chemistry
Platinum is a rare metal. Its 2 biggest uses are in jewelry and in the automotive industry, where it is used in the manufacture of automobile engines.
From August 2016 to June 2019, global platinum prices decreased by 30%.
From July 2019 to October 2019, global platinum prices increased by 22%.
Assuming that the market for platinum is highly competitive, use supply and demand concepts to explain whether the following supports an increase in the price of platinum or a decrease in the price of platinum. Explain why.
In: Economics
Use Vi text editor or ATOM to create a bash script file. Use the file name ayaan.sh. The script when ran it will execute the following commands all at once as script. Test your script file make sure it works.
Here is the list of actions the script will do:
Thank you in advance. Please show screenshots so I can learn what you did. I'm stuck
In: Computer Science
OpenSeas, Inc., is evaluating the purchase of a new cruise ship. The ship would cost $400 million today. OpenSeas expects annual cash flows from the new ship to be $70 million and these cash flows will last forever. The cost of capital is 16%.
What is the IRR of the new cruise ship? Please make your answer in the unit of percent.
______%
Following question 4, suppose the company has a desired payback period of 5 years.
Which statement is true about applying the payback method to the new project?
In: Finance
An epidemiologist computes a risk ratio for a disease spread on a cruise ship using the following formula: Attack rate in exposed group/Attack rate in unexposed group. The risk ratio turns out to be 2.4 and it is statistically significant at the .01 level. Which of the following is the BEST interpretation of the risk ratio?
a. The people in the exposed group were exposed to the disease prior to getting on the cruise ship
b. The risk of disease is higher in the unexposed group
c. The risk of disease is higher in the exposed group
d. There is no difference in risk between the exposed and unexposed groups
In: Statistics and Probability
Price discrimination is a pricing strategy where different groups of consumers are charged different amounts for the same good. This is further divided into direct and indirect categories with direct price discrimination charging different prices to different groups of consumers such as adults vs children or students vs non students and indirect discrimination charging different prices based on features that consumers are willing to pay for such as a cruise ship ticket that offers interior, exterior or balcony cabins. Direct price discrimination would be more advantageous with products that are marketed to varying groups or geographic areas. Pharmaceutical companies often use direct price discrimination to charge different prices to different countries with America being the highest. They then pursue legislation to prevent Americans from importing medication from lower paying countries If a product is not marketed to a diverse group then direct price discrimination may not be the best strategy. In these situations, it is still possible that indirect price discrimination could be a good strategy. This works best for products with a variety of options or features that consumers are willing to pay for. An example of this can be seen in the selling of automobiles. The price will change based on the different features that a consumer selects.
Please respond in 100-150 words
In: Economics
In: Finance
You have an Active Directory forest named csmtech.local and two Active Directory domains in the forest named csmpub.local and csmsales.local. You want the DNS servers in each domain to be able to handle DNS queries from client computers for any of the other domains. DNS servers in the csmtech.local and csmpub.local domains should be authoritative for their own domains and the csmsales.local domain. However, DNS servers in csmsales. local should be authoritative only for csmsales.local.
How should you set up the DNS servers and zones to handle this situation? Explain how the DNS servers in each domain should be configured with zones. Be sure to include information about replication scope and zone types. Please reference the csmpub.local and csmsales.local in your answer.
In: Computer Science