Answer:
The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.
Explanation:
The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.
The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.
Answer: SEE EXPLANATION
Explanation:
Given the following ;
Values depending on Success
$150M, $135M, $95M, $80M
Risk free rate = 5% = 0.05
Pervebtage to be lost in case of bankruptcy = 25% = 0.25
A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million
Assume a zero-coupon debt with a $100million face value
B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million
C.) Yield to maturity (YTM)
(100M÷78.87M) - 1
1.2679 - 1 = 0.2679 = 26.79%
Expected return = 5%
D.) Equity value
0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million
E.) share if no debt is issued
109.52 ÷ 10 = 10.95 per share
F.) Share price if debt of $100M is issued
99.11 ÷ 10 = 9.91 per share
The price differs because bankruptcy cost will Lower the share price.
Answer:
A Overhead: 180,634
B Production Cost: 214,410
C Period Cost: 71,091
Explanation:
<u>Manufacturing overhead</u>
Factory utilities 16,942
Depreciation on factory equipment 13,387
Property taxes on factory building 3,252
Indirect factory labor 49,656
Repairs to office equipment 2,179
Indirect materials 84,468
Factory repairs 2,465
Factory manager's salary 8,285
Total: 180.634
<u>Product Cost</u>
Direct labor 71, 743
Direct materials used 142,667
Total: 214,410
<u>Period Cost </u>
Sales salaries 47, 310
Depreciation on delivery trucks 4,546
Advertising 15, 712
Office supplies used 3,523
Total: 71,091
Answer:
The answer is $5767641.92
Explanation:
PV of an Annuity = C x [ (1 – (1+i)-n) / i ]
PV of an Annuity = $1,600,000 x [ (1 – (1+0.12)-5) /0.12 ] = $5767641.92
The present value of the prize is $5767641.92
Answer: Please see Explanation for answer.
Explanation:
January 01, 2021:
Cash Debit 44,221
Bonds Payable Credit 44,221
Since the bonds were sold at a discount, the entry to record the first interest payment (using straight line amortization of the premium) would be:
Interest expense ($44,221× 6% × 6months/12months ) = $1,326.63 =$1,327
Cash is given as ($50,000 × 5% ×6months /12months) = $1,250
June 30, 2021:
Interest Expense Debit---$1,326.63 Bonds Payable Credit $77
Cash Credit $1,250
