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!
Schweser Satellites Inc. produces satellite earth stations that sell for $100,000 each. The firms fixed costs, F, are $2 million; 50 earth stations are produced and sold each year; profits total $500,000; and the firms assets (all equity financed) are $5 million. The firm estimates that it can change its production process, adding $4 million to investment and $500,000 to fixed operating costs. This change will (1) reduce variable costs per unit by $10,000 and (2) increase output by 20 units, but (3) the sales price on all units will have to be lowered to $95,000 to permit sales of the additional output. The firm has tax loss carry forwards that cause its tax rate to be zero, its cost of equity is 16%, and it uses no debt.
a. What is the incremental profit? To get a rough idea of the projects profitability, what is the projects expected rate of return for the next year (defined as the incremental profit divided by the investment)? Should the firm make the investment?
b. Would the firms break-even point increase or decrease if it made the change?
c. Would the new situation expose the firm to more or less business risk than the old one.
Cassandra sells property for a sales valueof $150,000. In addition, Lana, the buyer, pays $5,000 in property taxes that had accrued during th year while property was still legally owned through Cassandra.
Define a corporate stakeholder. Compare in terms of the economic systems, the principle of maximizing shareholder wealth with the principle of satisfying stakeholder claims.
Cash flows statements, types of activities, vertical analysis of statements, Price earnings ratio and Basic accounting equation - When equipment is sold for cash, the amount received is reflected as a cash
Define and compare the following theories: expectations theory, liquidity theory, market segmentation theory, and preferred habitat hypothesis theory.
Assuming that all three investment opportunities have the same level of risk, calculate the effective annual return of each investment and select the best investment choice.
What role does each of the three main financial statements play in the decision-making process of the financial manager? Which one requires daily inspection? How long before trends are seen?
What is the price(expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating?
Calculate a recent 5 years average of the following ratios for three corporations of your choice attempt to select diverse firms.
What is a fixed exchange rate and what is a flexible exchange rate? China currently has a fixed exchange rate pegged to the US Dollar. How would a flexible exchange rate help China's global business?
Computation of Net operating Income and Market Value and Stock Price and If the selling price per deck of cards will be the same under each method
Why did MD International focus on Latin America? What are the benefits of this regional approach? What are the potential drawbacks?
Under fixed exchange rates, if Britain becomes more productive relative to the US, what foreign exchange intervention is necessary to maintain the fixed exchange rate between dollars and pounds? By whom?
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