Questions
for§ $ 5 we sell put option with an Execution Cost of $ 80 What a...

for§ $ 5 we sell put option with an Execution Cost of $ 80
What a total gain (loss) we will have if the share price is $ 65?

In: Accounting

Herr Mining Company plans to open a new coal mine. Developing the mine will cost ​$10...

Herr Mining Company plans to open a new coal mine. Developing the mine will cost

​$10 million right​ away, but cash flows of ​$3 million will arrive starting in one year and then continuing for the next four years​ (i.e., years 2 through​ 5). After​ that, no coal will​ remain, and Herr must spend 21 million to restore the land surrounding the mine to its original condition.

a. Construct a timeline showing the cash flows starting at time zero and extending until time 6.

b. What is the total undiscounted cash flow associated with this project over its​ 6-year life? Given this​ answer, do you think there is any way that the project can be financially attractive to Herr​ Mining? Why or why​ not?

A.The total undiscounted cash flow associated with this project over its​ 6-year life is

negative $ 21 million. This project would not be financially attractive to Herr Mining because based on the total undiscounted cash​ flow, they are spending more than they make.

B.The total undiscounted cash flow associated with this project over its​ 6-year life is

$ 15 million. This project would be financially attractive to Herr Mining because based on the total undiscounted cash​ flow, they are making money.

C.The total undiscounted cash flow associated with this project over its​ 6-year life is

negative $ 16 million. This project would not be financially attractive to Herr Mining because based on the total undiscounted cash​ flow, they are spending more than they make.

D.The total undiscounted cash flow associated with this project over its​ 6-year life is

negative $ 10 million. This project would not be financially attractive to Herr Mining because based on the total undiscounted cash​ flow, they are spending more than they make.

c. Calculate the present value of the​ project's cash​ flows, assuming the​ company's opportunity cost is 66​%.

What if the opportunity cost is 12​%?

Comment on what you find.

In: Finance

In September, Lauren Ashley Company purchased materials costing $220,000 and incurred direct labor cost of $150,000....

In September, Lauren Ashley Company purchased materials costing $220,000 and incurred direct labor cost of $150,000. Overhead totaled $310,000 for the month. Information on inventories was as follows:

September 1 September 30
Materials $140,000 $130,000
Work in process $90,000 $70,000
Finished goods $60,000 $80,000

Required:

1. What was the cost of direct materials used in September ?

$

2. What was the total manufacturing cost in September ?

$

3. What was the cost of goods manufactured for September ?

In: Accounting

Rumolt Motors has 41 million shares outstanding with a price of $39 per share. In​ addition,...

Rumolt Motors has 41 million shares outstanding with a price of $39 per share. In​ addition, Rumolt has issued bonds with a total current market value of $1,071 million. Suppose​ Rumolt's equity cost of capital is 11%​, and its debt cost of capital is 6%.

a. What is​ Rumolt's pretax weighted average cost of​ capital?

b. If​ Rumolt's corporate tax rate is 38%​, what is its​ after-tax weighted average cost of​ capital?

In: Finance

Assume Oahu Kiki applies its inventory costing method perpetually at the time of each sale. The...

Assume Oahu Kiki applies its inventory costing method perpetually at the time of each sale. The company sold 240 units between January 16 and 23.

Date Units Unit Cost Total Cost
  Beginning Inventory January 1 120 $ 8 $ 960
  Purchase January 15 380 9 3,420
  Purchase January 24 200 11 2,200

Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.

In: Accounting

The Crandall store begins each week with 500 phasers in stock. This stock is depleted each...

The Crandall store begins each week with 500 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $45 per year and the fixed order cost is $90. What is the current total carrying cost What is the current restocking cost? What is the economic order quantity? How many orders per year will Crandall place under the new policy? Should Crandall increase or decrease its order size

In: Finance

1) Write Java application that asks the user to enter the cost of each apple and...

1) Write Java application that asks the user to enter the cost of each apple and number of apples bought. Application obtains the values from the user and prints the total cost of apples.
2) Write a java application that computes the cost of 135 apples, where the cost of each apple is $0.30.
3)Write a java application that prepares the Stationery List. Various entries in the table must be obtained from the user. Display the Stationary list in the tabular format

In: Computer Science

Cost of Production and Cost per Unit

A business produces one product which requires the following inputs:
Direct Materials 6 kg at $ 4,80 per kg
Direct labour 4 hour at $7 per hour
Building cost $18.000 per period
Leased machine $600 for every 600 units (each machine has a capacity of 600 units)
Store Cost $3.000 per period plus $3 per unit
a. What is the total cost of production and the cost per unit at each of the following
production levels?
-1000 units
-2000 units
b. Explain why the cost per unit is different at each level of production?

 

In: Accounting

Cost of Production and Cost per Unit

A business produces one product which requires the following inputs:
Direct Materials 6 kg at $ 4,80 per kg
Direct labour 4 hour at $7 per hour
Building cost $18.000 per period
Leased machine $600 for every 600 units (each machine has a capacity of 600 units)
Store Cost $3.000 per period plus $3 per unit
a. What is the total cost of production and the cost per unit at each of the following
production levels?
-1000 units
-2000 units
b. Explain why the cost per unit is different at each level of production?

 

In: Accounting

The goal of this second stage in our equity analyst project is to select one industry...

The goal of this second stage in our equity analyst project is to select one industry out of this list of 24 whose performance prospects you determine are best over the next year. Here are some factors to consider when comparing industry groups:[1]

Degree of Competition in the Industry

Supply/Demand Dynamics for the Industry’s Products

Industry Cost Structure

Degree of Government Regulation-Favorable or Not

Exposure to the Business Cycle

Relative Financial Norms and Standards

Your team is asked to write a 5-10 page paper providing your analysis of the issues involved in your selection of the industry group that you conclude is most likely to prosper in the coming months and your justification of your choice of that industry.

Team Analysis of Select Industry Groups

This analysis is a team assignment that requires your team to analyze a select group of alternative industries to determine which is most likely to perform best in terms of growth and earnings over the next 12 months. Your instructor will create your teams, ideally based on similar views about the near-term prospects for the U.S. economy expressed in the Individual Asset Allocation Exercise.

To guide this second stage analysis, you are asked to rely on the North American Industry Groups database available at Yahoo! Finance. The system is comprised of 9 macroeconomic sectors, 31 business segments and 215 industry groups. This database is readily accessible via Yahoo! Finance at

http://biz.yahoo.com/ic/ind_index.html

To simplify the exercise the 215 industry groups within the database have been reduced to a more analytically manageable 24 industry groups (each with public firms listed at Yahoo! Finance totaling no less than 5 and no more than 15 companies) in 7 macroeconomic sectors as follows:

Basic Materials

Aluminum

Major Integrated Oil &Gas

Nonmetallic Mineral Mining

Consumer Goods

Appliances

Confectioners

Office Supplies

Financial

REIT-Healthcare Facilities

REIT-Hotel/Motel

REIT-Industrial

Healthcare

Drugs-Generic

Home Health Care

Hospitals

Industrial Goods

Manufactured Housing

Pollution & Treatment Controls

Services

Advertising Agencies

Air Delivery & Freight Services

Drug Stores

Electronic Stores

Home Improvement Stores

Jewelry Stores

Technology

Computer Based Systems

Long Distance Carriers

Personal Computers  

Utilities

Water Utilities

To access more details on these groups go to http://biz.yahoo.com/ic/ind_index.html and click on any of the names of the 24 groups to go to each industry’s “Industry Center” page. Additional useful information is available via the link to “Industry Browser” on the left. Also, on each industry’s summary page click on “Company Index” and then on “Public” on the subsequent page next to “View:” to get the list of public companies in this industry. Our focus is on publicly listed companies in which we might ultimately invest. The list of public companies is provided alphabetically. Following each name is the company’s ticker symbol in brackets. See http://www.investopedia.com/terms/s/stocksymbol.asp or http://www.investorwords.com/4968/ticker_symbol.html for brief definitions of stock/ticker symbols.

Please note that on occasion the ticker symbol may also be followed by other letters, such as PK or OB (see http://www.investopedia.com/ask/answers/04/022004.asp or http://www.investopedia.com/ask/answers/120.asp for explanations). It is recommended that we ignore stocks so designated in these exercises.

In: Finance