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raketka [301]
3 years ago
14

Jackson Tires reported net sales of $80 million and total operating costs (including depreciation) of $52 million. Jackson Tires

has $115 million of investor-supplied capital, which has an after-tax cost of 7.5%. If Jackson Tire's tax rate is 40%, how much value did it's management create or lose for the firm during the year?
a. 39.38 million
b. 2.66 million
c. 60.38 million
d. 8.18 million

According to Jackson Tires balance sheet, the firm has $120 million of total common equity (common stock plus retained earnings). The firm has 20 million shares of common stock outstanding, and the current stock price is $25.00 What is Jackson Tire’s current MVA?
Business
1 answer:
Roman55 [17]3 years ago
6 0

Answer:

d. 8.18 million

MVA is $380 million

Explanation:

Net residual Income is the value of the firm. All the preferred and required / agreed return on any the funding availed is deducted from the net earning after profit to make the value for the firm. The income purely associated to the firm is considered as the value of the firm.

Earning Before Interest and tax = Net Sales - Operating costs = $80 million - $52 million = $28 million

Net Operating profit after tax = $28 x ( 1 - 40% ) = $16.8 million

Return on investor-supplied capital = $115 million x 7.5% = $8.625 million

Value created for the firm = Net operating profit after tax - Return on investor-supplied capital = $16.8 - $8.625 = $8.175 million = $8.18 million

MVA is the net of market capitalization and stockholders equity of the firm. It is the difference of market value and book value of equity of a firm.

MVA = ( Outstanding shares x Market value of shares ) - Book value od the equity = ( 20 million shares x $25 per share ) - $120 million = $500 million - $120 million = $380 million

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Artemon [7]

Answer:

A. The required order cost per lot is $0.388

B. The required order cost per lot is $0.9216

Explanation:

A. According  to the given data Given area of shelf space = 5 Ft * 4 Ft = 20 Sq. Ft

Let us covert it to Sq. inch

1 Ft = 12 Inches

Therefore , Area of shelf space = 20 *12 * 12 = 2,880 Sq. in

1 can of water takes 20 Sq inch of shelf space

Therefore no. of cans that the shelf space can hold = 2880 / 20 = 144 Cans

Now SH wants to store exact amount of shelf space without needing to store cans somewhere elseand hence this 144 cans becomes EOQ (Economic order Qty.)

Now we know EOQ = √(2KD) / h ----Eq. 1

EOQ = 144

K = Fixed ordering cost = ?

D = Annual demand = 8000

h = Holding cost = ?

C = Cost per can = $ 3

i = 10 % (Carrying cost as percentage of Unit cost)

h = i * C

h = 10 % * $ 3

h = $ 0.3

Substituting above in Eq. 1 and solve for K

EOQ = √ (2KD) / h

144 = √(2 * K * 8000) / 0.3

Squaring both sides we get

20,736 = (16,000 * K ) / 0.3

20,736 * 0.3 = 16,000 * K

K = 6220.8 /16000

K = $ 0.388 = Ordering cost per order

The required order cost per lot is $0.388

B.  Here EOQ remains same = 144  But other parameters change

K = Fixed ordering cost = ?

D = Annual demand = 27,000

h = Holding cost = ?

C = Cost per can = $ 12

i = 20 % (Carrying cost as percentage of Unit cost)  

h = i * C

h = 20 % * $ 12

h = $ 2.4

Substituting above in Eq. 1 and solve for K

EOQ =√(2KD) / h

144 =  √(2 * K * 27,000) / 2.4

Squaring both sides we get

20,736 = ( 54,000 * K ) / 2.4

20,736 * 2.4 = 54,000 * K

K = 49,766.4 /54,000

K = $ 0.9216 = Ordering cost per order

The required order cost per lot is $0.9216

4 0
3 years ago
What nonprofit organization distributes knowledge related to health care for the purpose of improving health to governmental age
Fed [463]

Options:

a. Institute for Safe Medication Practices.

b. Institute of Medicine.

c. National Committee for Quality Assurance.

d.The Joint Commission.

Answer:

b. Institute of Medicine.

Explanation:

Interestingly, according to information found on its website, the The Institute of Medicine (IOM) is an independent, nonprofit organization that provides advice to decision makers and the public, which includes distributes information related to health care for the purpose of improving health to governmental agencies, the public, business, and healthcare professionals.

5 0
3 years ago
3) Frito-Lay's gathers daily sales data and sorts it by product line and by region. The marketingmanagers use the data to evalua
Tasya [4]

Answer:

The correct answer is: D. Marketing information system.

Explanation:

Modern marketing requires more dynamic and intelligent information systems every day. The real-time information for decision making every day becomes more relevant. Focusing marketing strategies on the knowledge of customers and markets, requires having antennas placed on the market and multi-source data collection systems that allow anticipating market trends and thus making smarter decisions. Technology, Big Data and artificial intelligence are changing the rules of the Information Systems game.

The Marketing Information System and the digitalization of processes go hand in hand, allowing companies to use technology as a tool for making timely decisions for the market.

8 0
3 years ago
Rgnijdlxkdoefjinvkmw,lpeijfmodkwmeifvw
BartSMP [9]
It's hehhdfsjgsisgdsjsb,gvsjsvgsgejdnxgndjdgdusjehgsnskhsgzjosbdjd there's the answer XD
7 0
3 years ago
EB2.
madreJ [45]

Answer:

The question is incomplete; the complete question is given below:

                                                                  $

Direct materials             15,000.00

Direct labor                       25,000.00

Factory depreciation expense         45,000.00

Factory utilities expense          2,000.00

Payroll staff's salary    15,000.00

Prime cost= $40,000,  Conversion cost= $72,000

Explanation:

Prime cost: It is the summation of all direct costs. Direct costs are costs that are incurred directly for a particular product, and therefore can be traced to it.

Examples of direct costs include; direct material costs, direct labour cost and direct expense

Direct materials cost: the costs of all materials used directly to manufacture a product. <em>For example, cocoa powder, vanilla used in making chocolate</em>. <em>Every other materials costs are indirect material costs</em>

Direct labor cost: the cost of the labor hours of workers actively involved in the production of a product. For example, the cost of the total hours paid to workers for packing the chocolates into cartons. <em>Every other labor costs are indirect labor costs</em>

Prime cost = Direct material cost+ Direct labour cost  + Direct expense

Prime cost = $15,000 + $25,000= $40,000

Conversion cost = The sum of direct labour costs  and <u>manufacturing overheads</u>

Conversion cost= $25,000 + $45,000 + $2000= $72,000

Note that payroll staff cost was excluded because payroll function is an administrative activitiy not manufacturing.

6 0
3 years ago
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