Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Kimer Company's Small Motor Division produces a variety of small motors that are used in various household and office appliances. Kimer's Kitchen Products Division manufactures appliances such as blenders, juicers, coffee grinders, and so on. The most frequently used motor is Model A28, which can be purchased from a number of outside suppliers for $2.30 each. The manager of the Kitchen Products Division has approached the manager of the Small Motor Division and offered to buy 150,000 Model A28 small motors. The Small Motor Division currently is producing at capacity and produces and sells 200,000 Model A28 motors to outside customers for $2.30 each.
Required
1. What is the minimum transfer price for the Small Motor Division? What is the maximum transfer price for the Kitchen Products Division? Is it important that transfers take place internally? If transfers do take place, what should the transfer price be?
2. Now assume that the Small Motor Division incurs selling costs of $0.20 per motor that could be avoided if the motors are sold internally. Identify the mini- mum transfer price for the Small Motor Division and the maximum transfer price for the Kitchen Products Division. Should internal transfers take place? If so, what is the benefit to the firm as a whole?
3. Suppose you are the manager of the Small Motor Division. Selling costs of $0.20 per motor are avoidable if they are sold internally. Would you accept an offer of $2.20 from the manager of the other division? How much better off (or worse off) would your division be if this price is accepted?
What can you say about what the Sharpe Ratios of the portfolios that confirms the fact that diversification gives no benefit if stocks are perfectly correlated?
You receive the coupon payments for three years and the bond defaults. After liquidating the firm. The bondholders receive a distribution of $150 per bond at the end of 3.5 years. What is the realized return on your investment?
Explain how much money must be saved each year to accomplish the same retirement income of $80,000 per year?
What is an estimated return that shareholders of NAB expect to earn and what is weighted average cost of capital (WACC) - How the increase in liability will affect WACC of NAB.
question 1present value of an annuity. for each of the cases shown in the following table calculate the present value
question 1you own a rental building in the city and are interested in replacing the heating system. you are faced with
1. there is a stock which grows at 200 per year for 1 years and after that it grows negatively at 1 per year forever.
What was your total nominal rate of return on this investment over the past year and what was your total real rate of return on this investment?
q1.allied electrons must purchase a new automatic soldering machine to meet increased demand for its electronic goods.
Compute the degree of operating leverage at a sales level of $9,000,000 under both the present pay system and the proposed new one. Explain why there is a difference between your two values in {a}.
understanding returns.1 you purchase 1000 shares of spears grinders inc. stock for 45 per share. a year later the stock
1. pollos inc. wants to raise 2 million by issuing ten-year zero coupon bonds with a face value of 1000. its
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd