Questions
Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in...

Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $155,000, and $195,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $17,500,000 in debt and 1,350,000 shares outstanding. At Year 5, you believe that the company's sales will be $27,030,000 and the appropriate price-sales ratio is 2.6. The company’s WACC is 9.1 percent and the tax rate is 21 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

In: Finance

Consider a one year American put option on 100 ounces of gold with a strike of...

Consider a one year American put option on 100 ounces of gold with a strike of $2300 per ounce. The spot price per ounce of gold is $2300 and the annual financing rate is 7% on a continuously compounded basis. Finally, gold annual volatility is 15%. In answering the question below use a binomial tree with two steps.

A. Compute u, d, as well as p for the standard binomial model.

In: Finance

A ten-year Treasury note with a 5.000% coupon rate is sold at par value in the...

A ten-year Treasury note with a 5.000% coupon rate is sold at par value in the primary market (assume par value is $100). Bill purchases the Treasury note at a price of 103.000 when it has five years left to maturity and it has a 4.326% yield-to-maturity. Bill holds the Treasury note for three years and then sells it to George in the secondary market. George then holds the Treasury note to maturity. Assume three years from when Bill purchases the Treasury note, yield-to-maturities (interest rates) will be:

  • 3.800% on T-notes with 1-year to maturity
  • 4.000% on T-notes with 2-years to maturity
  • 4.200% on T-notes with 3-years to maturity
  • 4.400% on T-notes with 4-years to maturity
  • 4.600% on T-notes with 5-years to maturity
  • 5.2000% on T-notes with 10-years to maturity
  1. Complete a time line for George’s Treasury note (while owned by George). You should include as much information as possible. You can let price be an unknown variable (i.e., Price = ? or PV = ?) as it will be calculated below.

0                           1     

|----------------------|-----------------      

2.         Enter the variables into the financial calculator box needed to solve for George’s purchase price.

Enter

N

I/Y

PV

PMT

FV

Solve for

In: Finance

The Dorset Corporation produces and sells a single product. The following data refer to the year...

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:

Beginning inventory 0
Units produced 30,300
Units sold 24,700
Selling price per unit $ 465
Selling and administrative expenses:
Variable per unit $ 25
Fixed per year $ 469,300
Manufacturing costs:
Direct materials cost per unit $ 211
Direct labor cost per unit $ 53
Variable manufacturing overhead cost per unit $ 36
Fixed manufacturing overhead per year $ 454,500

Assume that direct labor is a variable cost.

Required:

a. Compute the unit product cost under both the absorption costing and variable costing approaches.

b. Prepare an income statement for the year using absorption costing.

c. Prepare an income statement for the year using variable costing.

d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

In: Accounting

You purchase a car for 10,000 The car loan is financed with a 5% per year,...

You purchase a car for 10,000

The car loan is financed with a 5% per year, 5 year loan with annyual payments starting at time 1 (1 year from today) through time 5

Each payment reduces the principal by a certain amount until the loan is completely paid off.

What is the interest component of the first payment?

(I am allowed to use the TI-34 and BAII Plus calculators)

In: Finance

The stockholders’ equity section of K Inc. at the beginning of the current year appears below....

The stockholders’ equity section of K Inc. at the beginning of the current year appears below.
Common stock, $10 par value, authorized 944,000 shares, 303,000 shares issued and outstanding $3,030,000
Paid-in capital in excess of par—common stock 549,000
Retained earnings 531,000

During the current year, the following transactions occurred.
1. The company issued to the stockholders 103,000 rights. Ten rights are needed to buy one share of stock at $32. The rights were void after 30 days. The market price of the stock at this time was $34 per share.
2. The company sold to the public a $198,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $30 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8.
3. All but 5,150 of the rights issued in (1) were exercised in 30 days.
4. At the end of the year, 80% of the warrants in (2) had been exercised, and the remaining were outstanding and in good standing.
5. During the current year, the company granted stock options for 10,700 shares of common stock to company executives. The company, using a fair value option-pricing model, determines that each option is worth $10. The option price is $30. The options were to expire at year-end and were considered compensation for the current year.
6. All but 1,070 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of the executives failed to fulfill an obligation related to the employment contract.

(a)

Prepare general journal entries for the current year to record the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.)

No.

Account Titles and Explanation

Debit

Credit

1.

 enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

2.

 enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

3.

 enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

4.

 enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

5.

 enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

6.

For options exercised:
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

For options lapsed:
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount

In: Accounting

In a slow year, Deutsche Burgers will produce 3.200 million hamburgers at a total cost of...

In a slow year, Deutsche Burgers will produce 3.200 million hamburgers at a total cost of $4.600 million. In a good year, it can produce 6.200 million hamburgers at a total cost of $6.400 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced? The fixed costs are spread across more burgers. Variable costs are lower per burger. Fixed costs are constant per burger. rev: 09_25_2017_QC_CS-101934 Next Visit question mapQuestion 1 of 6 Total 1

In: Finance

Periodic Inventory by Three Methods The units of an item available for sale during the year...

Periodic Inventory by Three Methods

The units of an item available for sale during the year were as follows:

Jan. 1   Inventory 6 units @ $50
Feb. 17   Purchase 14 units @ $52
Jul. 21   Purchase 13 units @ $53
Nov. 23   Purchase 10 units @ $54

There are 4 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to one decimal and final answers to the nearest whole dollar, if required.

a. Determine the inventory cost by the first-in, first-out method.
$

b. Determine the inventory cost by the last-in, first-out method.
$

c. Determine the inventory cost by the weighted average cost method.
$

In: Accounting

Suppose a? ten-year, $ 1000 bond with an 8.1 % coupon rate and semiannual coupons is...

Suppose a? ten-year, $ 1000 bond with an 8.1 % coupon rate and semiannual coupons is trading for $ 1034.99. a. What is the? bond's yield to maturity? (expressed as an APR with semiannual? compounding)? b. If the? bond's yield to maturity changes to 9.5 % ?APR, what will be the? bond's price? (Round to two decimal? places.)

In: Finance

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible...

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement.

After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations. Month 1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 75 % 70 % 67 % 64 % Total sales (units) 2770 2651 2515 2420

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months: Average per Month (in days) 1 2 3 4 Move time per unit 0.8 0.4 0.5 0.5 Process time per unit 3.9 3.7 3.5 3.3 Wait time per order before start of production 16.0 17.5 21.0 22.6 Queue time per unit 5.0 5.9 6.9 8.0 Inspection time per unit 0.4 0.6 0.6 0.4

Required: 1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month

4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month

4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

please help me i have just 2 hours

type but can i copy

In: Accounting