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 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. 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 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 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 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 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
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
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 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