Corp is planning to issue a stock to finance a new operations facility, the projected cost of the facility is $278 million, additional flotation costs are $1 million and the underwriter's fee is 7% What will be the size of the stock offering? How many shares of stock can they issue if the stock sells for $80 per share?
In: Finance
You expect that you will need to replace your furnace in 5 years at a cost of $15,725. How much must you save, each month for 32 months, starting next month (the same amount each month) if your savings account pays 2.41% APR (compounded monthly)?
In: Finance
You expect that you will need to replace your furnace in 5 years at a cost of $15,729. How much must you save today in an account that pays 3.42% APR (compounded monthly) to exactly pay the $15,729 in 5 years?
In: Finance
Use MM theory to explain the effect of capital structure on the equity cost of capital and WACC a) in perfect markets; and b) when corporate tax exists. (No calculation is needed.)
In: Finance
In: Finance
Project A has a 10 percent cost of capital and the following cash flows: (3) Project A Year Cash Flow 0 -$300 1 100 2 150 3 200 4 50 What is Project A’s discounted payback? a. 2.25 years b. 2.36 years c. 2.43 years d. 2.50 years e. 2.57 years
In: Finance
people with a higher opportunity cost of time are more willing, ceteris paribus, to pay a higher money price for goods that save time than people with a lower opportunity cost of time. First, provide an example of a product where an important part of the true cost of the product is the time price. Can you think of something that seems to be a bargain at first because of its low money price, but that isn't as much of a bargain when you consider both the money price and the time price of the good? Can you think of an example of a new good or service being offered that reduces the time price of a good while charging a higher money price? Are there any opportunities for mutual gain or an increase in societal utility if someone with low opportunity cost of time provides a service (e.g., waiting in line) for a person with a higher opportunity cost of time?
In: Finance
A central air conditioning unit was installed on January 1, 2000
at an initial cost of
P650,000 and was expected to have a salvage value of P50,000 after
a life of 7 years. a.
What amount of depreciation had accumulated in a
sum-of-the-years’-digit method at the
end of 2003? b. Using the declining balance method, determine the
depreciation charged
for 2004 and the book value at the end of 2004. c. If the equipment
was sold on Jan 1,
2005 for P100,000, what amount of loss would result from this sale
if sinking fund method
was being used with interest of 12% per year?
Show a complete and logical solution
In: Accounting
Computing Cost of Goods Sold and Ending Inventory Under
FIFO, LIFO, and Average Cost
Assume that Madden Company reports the following initial balance
and subsequent purchase of inventory.
Inventory balance at beginning of year 1,560 units @ $150 each $234,000
Inventory purchased during the year 2,040 units @ $180 each 367,200
Cost of goods available for sale during the year 3,600 units $601,200
Assume that 2,400 units are sold during the year. Compute the cost of goods sold for the year and the inventory on the year‑end balance sheet under the following inventory costing methods.
Find COGS and Ending Inventory for:
a. FIFO
B. LIFO
C. Average Cost
In: Accounting
The cost of goods sold during the year was $281200. Inventory increased by $9000 during the year and accounts payable decreased by $14100 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total
$295300.
$304300.
In: Accounting