Regarding to the location decision and supply chain management, a primary challenge is to address ______________

The owners of Arthouse Inc., a national artist supplies chain, are contemplating purchasing Craftworks Inc, a smaller chain. Art

Elodia [21]

Answer:

It can purchase at most, $18.13 per share.

Or 72.52 millions for the total 4,000,000 shares

Explanation:

We are given with the present value of the merger at Craftworks discount rate. The shares can be purchase at most at the same level of the present value of the increase in the free cash flow.

That way, the net present value will be zero and the merger will yield the 16% required.

72,520,000 Millions

4,000,000 shares outstanding

price per share 18.13

The crafworks shares can be purchase at most for 18.13 above this, it would yield the 16% required

Currently the share are at 16.25 so it could be possible to do the take-over

6 0

3 years ago

The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $ 9,300,000 Cost of

Nina [5.8K]

Question attached

Answer and Explanation:

Answer and explanation attached

4 0

3 years ago

Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c

Alborosie

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

5 0

3 years ago

U. S. Personal savings fell significantly during the 1980s and 1990s. Why didn’t the supply of loanable funds experience a simil

Wewaii [24]

Answer:

Increased foreign wealth and income

Explanation:

5 0

2 years ago

Managers today need to look past traditional viewpoints in determining the success of their company's strategy. One such approac

bogdanovich [222]

Answer:

The Balanced Scorecard

Customer satisfaction:

Perspective: Customer: This perspective concentrates on things like customer service.

Goal: Service: This would be the level of customer service.

Measure: How do our customers see us? Survey: This would be the results of an online customer satisfaction survey.

Internal processes:

Perspective: Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.

Goal: Productivity: This would concentrate on changes to the process involved in production.

Measure: How do we look to our shareholders? Analysis: This would use data from the ERP system to look into success levels of company processes.

Innovation and improvement activities:

Perspective: Innovation and Learning: This perspective is concerned with making sure employees learn and grow so they can continually innovate.

Goal: Training: This would focus on providing enhanced training opportunities for employees.

Measure: What do we need to excel at? Results: This would look at changes in the skill level of employees.

Financial measures:

Perspective: Financial: This perspective has to do with the conversion of performance into financial performance and the creation of value.

Goal: Growth: This would concentrate on an increase in sales.

Measure: Can we continue to improve and create value? Sales: This would be the annual sales figures.

Explanation:

The balanced scorecard which Bryan is developing for KanO Mines helps KanO Mines to understand how to create value in the organization. With the balanced scorecard as a strategic planning and management tool, organizational goals are communicated to KanO Mines, so that his daily activities are aligned with the organizational strategy. It also helps him to prioritize his projects, products, and services. The balanced scorecard does not only deal with perspectives and goals, it also helps KanO Mines and his manager, Bryan, to measure and monitor his progress towards achieving the set organizational strategic goals.

4 0

3 years ago

Regarding to the location decision and supply chain management, a primary challenge is to address _______________ distribution.