Answer:
7.89%
Explanation:
We can find the IRR of Project A and Project B is 9% and 8% respectively
(please see the calculation in excel in attachment)
So if the interest rate below 8% then Project A is more profitable than project B.
You can find NPV of each project follow the decrease in interest rate in the excel attached.
Ending merchandise = beginning Merchandise + net purchases- cost of goods sold
Cost of goods sold= beginning merchandise + purchases during the period- ending merchandise
Answer:
The total value will not change.
Explanation:
Stock split occurs when a stock is divided into parts. The value of each stock will decline but there will be more stocks and overall value will remains same. If stock A goes through a stock split then the new price per stock will decline but the overall value to the investor will remain same.
Solution:
a-1) Calculation of the number of shares used for calculating Basic Earning per share
No. of shares period
752000 3/12 188000
1314000 9/12 985500
Weighted average No of shares outstanding 1173500
a-2) Calculation of the number of shares used for calculating Diluted Earning per share
No. of shares period
752000 3/12 188000 1314000 3/12 328500 with Bonds 1340400 6/12 670200
Weighted average No of shares outstanding 1186700
Each bonds to per converted into 44 common stock
i.e. 600 Bonds *44 common=26400 Potential equity shares
b-1) Calculation of earning figures to be used for calculating Basic Earning per share
After Tax net Income will be earnings = $1614000
b-2) Calculation of earning figures to be used for calculating Diluted Earning per share
After tax net Income 1614000
Interest for the 2017 =600000*7*6/12 21000
Tax effect on Interest @40% 8400 12600 1626600
Earnings = 1626600
Answer:
True
Explanation:
The modern notion of "just in time" material delivery supports reduction of inventory and its associated costs. Plants that have sufficiently steady raw material usage will prefer supplies delivered "just in time."
Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.
It is true that most plants <em>want</em> to have supplies delivered just in time, but circumstances may make needs differ from wants.
