Read Case 2.2, “The Ethics of Human Resource Management” by Elizabeth D. Scott (pages 74–87), in Strategic Human Resources Management.
Hiring managers and recruiters sometimes face ethical dilemmas when selecting final candidates for an open position. At times, conflicts of interest can arise where friends, relatives, neighbors, alma mater graduates, and so on become applicants for a position a hiring manager or recruiter is filling.
With this in mind, post a response of at least 150 words to the following question:
In: Operations Management
12,Western Electric has 29,500 shares of common stock outstanding at a price per share of $74 and a rate of return of 13.25 percent. The firm has 7,050 shares of 7.30 percent preferred stock outstanding at a price of $92.50 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $389,000 and currently sells for 108.5 percent of face. The yield to maturity on the debt is 7.93 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent?
In: Finance
|
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $95 million, a coupon rate of 7 percent, and sells for 97 percent of par. The second issue has a face value of $80 million, a coupon rate of 6 percent, and sells for 109 percent of par. The first issue matures in 23 years, the second in 6 years. Both bonds make semiannual coupon payments. |
| a. |
What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) |
| b. | What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) |
In: Finance
100 kg/hr of aqueous mixture containing 74 %wt of
sucrose is cooled from 60 ˚C to 20 ˚C. Due to the decrease in
temperature, some of the sugar precipitates out from the mixture as
crystals and are subsequently removed via a separator
unit. In the separation of the crystals, for every 1 kg
of crystals removed, 0.05 kg of the aqueous mixture will be removed
together with the crystals. Calculate the mass flow rate
of the remaining saturated aqueous solution (in kg/hr).
Assume that the solubility of sucrose as a function of temperature
in ˚C is given by the equation: %wt sucrose = 63.2 + 0.146T +
0.0006T2
In: Other
The Freeman Manufacturing Company is considering a new
investment. Financial projections for the investment are tabulated
below. The corporate tax rate is 34 percent. Assume all sales
revenue is received in cash, all operating costs and income taxes
are paid in cash, and all cash flows occur at the end of the year.
All net working capital is recovered at the end of the
project.
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 41,000 | ||||||||
| Sales revenue | $ | 21,000 | $ | 21,500 | $ | 22,000 | $ | 19,000 | ||
| Operating costs | 4,400 | 4,500 | 4,600 | 3,800 | ||||||
| Depreciation | 10,250 | 10,250 | 10,250 | 10,250 | ||||||
| Net working capital spending | 470 | 520 | 570 | 470 | ? | |||||
a. Compute the incremental net income of the
investment for each year. (Do not round intermediate
calculations.)
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
b. Compute the incremental cash flows of the
investment for each year. (Do not round intermediate
calculations. A negative answer
should be indicated by a minus sign.)
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
c. Suppose the appropriate discount rate is 13
percent. What is the NPV of the project? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
NPV $
In: Finance
Problem 8-2 Calculating Project NPV
The Freeman Manufacturing Company is considering a new
investment. Financial projections for the investment are tabulated
below. The corporate tax rate is 35 percent. Assume all sales
revenue is received in cash, all operating costs and income taxes
are paid in cash, and all cash flows occur at the end of the year.
All net working capital is recovered at the end of the
project.
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 32,000 | ||||||||
| Sales revenue | $ | 16,500 | $ | 17,000 | $ | 17,500 | $ | 14,500 | ||
| Operating costs | 3,500 | 3,600 | 3,700 | 2,900 | ||||||
| Depreciation | 8,000 | 8,000 | 8,000 | 8,000 | ||||||
| Net working capital spending | 380 | 430 | 480 | 380 | ? | |||||
a. Compute the incremental net income of the
investment for each year. (Do not round intermediate
calculations.)
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
b. Compute the incremental cash flows of the
investment for each year. (Do not round intermediate
calculations. A negative answer
should be indicated by a minus sign.)
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
c. Suppose the appropriate discount rate is 12
percent. What is the NPV of the project? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
NPV $
In: Finance
The Freeman Manufacturing Company is considering a new
investment. Financial projections for the investment are tabulated
below. The corporate tax rate is 40 percent. Assume all sales
revenue is received in cash, all operating costs and income taxes
are paid in cash, and all cash flows occur at the end of the year.
All net working capital is recovered at the end of the
project.
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 26,000 | ||||||||
| Sales revenue | $ | 13,500 | $ | 14,000 | $ | 14,500 | $ | 11,500 | ||
| Operating costs | 2,900 | 3,000 | 3,100 | 2,300 | ||||||
| Depreciation | 6,500 | 6,500 | 6,500 | 6,500 | ||||||
| Net working capital spending | 320 | 370 | 420 | 320 | ? | |||||
a. Compute the incremental net income of the
investment for each year. (Do not round intermediate
calculations.)
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
b. Compute the incremental cash flows of the
investment for each year. (Do not round intermediate
calculations. A negative answer
should be indicated by a minus sign.)
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
c. Suppose the appropriate discount rate is 11
percent. What is the NPV of the project? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
NPV $
In: Accounting
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 37,000 | ||||||||
| Sales revenue | $ | 19,000 | $ | 19,500 | $ | 20,000 | $ | 17,000 | ||
| Operating costs | 4,000 | 4,100 | 4,200 | 3,400 | ||||||
| Depreciation | 9,250 | 9,250 | 9,250 | 9,250 | ||||||
| Net working capital spending | 430 | 480 | 530 | 430 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
| c. |
Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
In: Finance
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 44,000 | ||||||||
| Sales revenue | $ | 22,500 | $ | 23,000 | $ | 23,500 | $ | 20,500 | ||
| Operating costs | 4,700 | 4,800 | 4,900 | 4,100 | ||||||
| Depreciation | 11,000 | 11,000 | 11,000 | 11,000 | ||||||
| Net working capital spending | 500 | 550 | 600 | 500 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
| c. |
Suppose the appropriate discount rate is 13 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
In: Finance
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 28,000 | ||||||||
| Sales revenue | $ | 14,500 | $ | 15,000 | $ | 15,500 | $ | 12,500 | ||
| Operating costs | 3,100 | 3,200 | 3,300 | 2,500 | ||||||
| Depreciation | 7,000 | 7,000 | 7,000 | 7,000 | ||||||
| Net working capital spending | 340 | 390 | 440 | 340 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
| c. |
Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
In: Finance