Boris cannot afford his current car insurance payments. How can he most easily lower them?

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $38,000 and a remain

irina [24]

Answer:

Alternative A should be accepted as it is giving favourable result of $30,600

Explanation:

Xinhong Company

ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME

Cost to buy new machine $123,000

Cash received to trade in old machine $48,000

Reduction in variable manufacturing costs = 4*($33500 - $22400) = $44,400

Total change in net income $30,600

ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME

Cost to buy new machine $119,000

Cash received to trade in old machine $48,000

Reduction in variable manufacturing costs = 4*($33500 - $10300) = $92,800

Total change in net income $21,800

Therefore, Alternative A should be accepted as it is giving favourable result of $30,600

4 0

3 years ago

The _____ is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up

____ [38]

The answer is the total budget cost. It is the one responsible of the expense that the company needs and the estimated expense that they had used that may be of use as their basis and for the their future period.

7 0

3 years ago

The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3

VLD [36.1K]

Answer:

a. ROE (r) = 13% = 0.13

EPS = $3.60

Expected dividend (D1) = 50% x $3.60 = $1.80

Plowback ratio (b) = 50% = 0.50

Cost of equity (ke) = 12% = 0.12

Growth rate = r x b

Growth rate = 0.13 x 0.50 = 0.065

Po= D1/Ke-g

Po = $1.80/0.12-0.065

Po = $1.80/0.055

Po = $32.73

P/E ratio = Current market price per share

Earnings per share

P/E ratio = $32.73

$3.60

P/E ratio = 9.09

b. ER(S) = Rf + β(Rm - Rf)

ER(S) = 5 + 1.2(13 - 5)

ER(S) = 5 + 9.6

ER(S) = 14.6%

Explanation:

In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.

In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.

8 0

3 years ago

Bo Borg is the vice president of purchasing for Crater Corp. He has authority to enter into purchase contracts on behalf of Crat

g100num [7]

Answer: Crater will be bound because of Borg's apparent authority.

Explanation:

Crater Corp. will be bound to the contract since Bo Borg has the apparent authority as the acting Vice President of purchasing. Even though he went over the agreed amount that was over 2 million in the contract. Since the Shady company was unaware that he had exceeded his authority the contract will stay in place. If Shady company had of known that he did not have the final say and needed approval the result of the transaction would of been different.

7 0

3 years ago

You are responding to an RFP from a medium-sized company in another state. The RFP explains that the company wants to begin manu

lara [203]

Answer:

Overview

According to the RFP received, it is comprehended that the client wants to establish a business of manufacturing wooden toys for children. The key differentiator or unique selling point (USP) of the toys would be strong branding and marketing of the product. This will create a three value axis of Trust, Safety, and Identity.

The client is searching for strategic partner to establish the business to deliver and implement the strategic vision for the next five years. The following are the basic five essentials associated with strategic business plan:

• Mission statement

• Vision

• Strategic critical factors

• Objectives and strategic goals to be achieved.

• Implementation strategies

Approach:

Today, the toy market is overcrowded with many types of toys, each having a unique value proposition and targeting specific age brackets in children. Marketers treat children as a separate demographic segment. Hence, conduct detailed research on this segment to identify classifying the patterns buying behavior.

The especially planned framework would create our business plans for hyper competitive marketplaces. The approach to create the plan is shown below:

• Defining the scope of the product: It includes target marketing, selling channels and targeting demographics of children.

• Understand the market: the main 5 elements in this stage are competition in the market, existing suppliers, and purchasing power of buyers, substitute products, and entrance barrier.

• Positioning of brand: It includes segmentation, identification of potential market, targeting, positioning, communicating, and positioning.

• Manufacturing and distribution of products: it includes the acquisition of raw material, machinery, developing distribution channel, and supply chain management.

• Finance calculation and Human Resource: it includes calculation of revenue, profits, Return on investment, taxation, and other various measures.

Timeline:

According to RFP details, it is estimated time duration to create a business strategy is 8 months. The timeline is shown below:

• Defining the scope – 1 month

• Understand the market – 3 months

• Positioning of brand – 2 months

• Manufacturing and distribution of products – 1 month

• Finance calculation and Human Resource – 1 month

Introduction of business:

Our agency has been serving companies to succeed over years. We have functioned with multiple companies having wide range of experience in this sector. We have functioned with extensive clients and helped them to achieve a reliable growth rate. We are fully engaged with the client and facilitate them to develop designing of the business plan.

The experience and promise towards the success of our partners helped us grow. We have positioned as a medium-size business counseling firms. We help our clients to have clear goals. We help to grow the understandings and approach towards the business.

4 0

3 years ago