If you get equity funding for your business, what will you have to do?

Tidewater Company uses the product coot concept of applying the cost-plus approach to product priding The cost and expenses of r

kkurt [141]

Answer:

The desired profit from the sale and production of K is 10% of invested amount=10%*$1285000

=$128500

cost per unit =$18.68

b.total manufacturing cost=$18.68*50000=$934000

cost per unit remains=$18.68

Profit per unit =$2,57

markup %=2.57/18.68=13.76%

Selling price =cost+mark up

=$18.68+$2.57

=$21.25

Explanation:

I have attached an excel file for further understanding on the formulas used above,please check out the file in order to gain better insights into the exercise.

Download xlsx

4 0

3 years ago

Molly and Craig are the original parties to a contract. Craig is obligated to design a Website for Molly. They subsequently make

kolezko [41]

Answer:

Novation

Explanation:

A novation is an agreement that is made between the two parties. In this, the one-party could take place or we can say the substituting of a new party could be done but the parties could ready for the novation

Here in the given scenario, since the Eric takes the place of Craig and its rights and duties are now with Eric

So this situation represents the novation agreement

6 0

3 years ago

JDW Corporation reported the following for 20X1: net sales $2,929,500; cost of goods sold $1786,995; selling and administrative

motikmotik

Answer:

JDW Corporation

Income statement

For the year ended December 31, 20x1

Sales $2,929,500

Cost of good sold $1,786,995

Gross Profit $1,142,505

Selling and Administration expenses $585,900

Income from Operations before tax $446,605

Income Tax $116,887

Net Income $439,718

JDW Corporation

Statement of comprehensive income

For the year ended December 31, 20x1

Net Income $439,718

Unrealized holding loss net of tax -$22,000

Foreign currency transaction adjustment $26,250

Unrealized loss from pension adjustment net of tax -$7,000

Comprehensive Income $436,968

8 0

3 years ago

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50. Afterwards, the

andreev551 [17]

Answer:

Current share price =$77.81

Explanation:

Price of the stock today = $\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{D4}{(1+ke)^4}+\frac{P4}{(1+ke)^4}$ .

where P4 = $\frac{D5}{ke-g}$

where D5 = D4(1+g)

Price of the stock today = $\frac{16}{(1+0.16)^1}+\frac{12}{(1+0.16)^2}+\frac{11}{(1+0.16)^3}+\frac{7.50}{(1+0.16)^4}+\frac{7.50(1.06)}{(0.16-0.06)(1+0.16)^4}$ = $77.81

8 0

3 years ago

Suppose that you hold a piece of land in the City of London that you may want to sell in one year. As a U.S. resident, you are c

podryga [215]

Answer and Explanation:

(A) E(P) = (0.6) × ($2800) + (0.4) × ($2250)

= $1680+$900

= $2,580

E(S) = (0.6) × (1.40)+(0.4) × (1.5)

= 0.84 + 0.60

= $1.44

Var(S) = (0.6)(1.40 - 1.44)² + (.4)(1.50 - 1.44)²

= .00096+.00144

= 0.0024.

Cov(P,S) = (0.6)(2800-2580)(1.4-1.44) + (0.4)(2250-2580)(1.5-1.44)

= -5.28-7.92

= -13.20

b = Cov(P,S)/Var(S)

= -13.20/.0024

= -£5,500.

there is a negative exposure. as the pound gets stronger/weaker against the dollar the dollar value of british holding goes higher.

(B) b²Var(S) = (-5500)²(.0024) = 72,600($)²

(C). i would Buy 5,500 forward to hedge exchange risk exposure. By doing this, i can eliminate the volatility of the dollar value of your British asset that is due to the volatility of the exchange rate

4 0

4 years ago