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Scott Equipment Organization is investigating various combinations of short- and long-term debt in financing assets. Assume the organization has decided to employ $10 million in current assets and $15 million in fixed assets in its operations next year, and EBIT for next year is $8 million. The organization's income tax rate is 40%. Stockholders' equity will be used to finance $15 million of assets, with the remainder financed by short- and long-term debt. The organization is considering implementing one of the policies below. Current Assets: $10 million Fixed Assets: $15 million Total Assets : $25 million Stockholders' Equity: $15 million Total Amount of Assets to be financed by debt: $10 million Tax Rate: 40% Total EBIT: $8 million Aggressive Strategy Short Term Debt: $8 million, 6% interest rate Long Term Debt: $2 million, 8% interest rate Moderate Strategy Short Term Debt: $5 million, 5.5% interest rate Long Term Debt: $5 million,7.5% interest rate Conservative Strategy Short Term Debt: $3 million, 5.25% interest rate Long Term Debt: $7 million, 7.25% interest rate Determine the following for each policy: · Net Income · Expected rate of return on stockholders' equity (Net Income/Equity) · Net working capital position (Current Assets - Current Liabilities) · Current ratio (Current Assets/Current Liabilities) · Would you rate them low, medium, or high with respect to profitability? · Would you rate them low, medium, or high with respect to risk? · What is your recommendation to management? Why?
Given the following line balance data: Task Predecessor Time (seconds) t ---- 15 u t 14 v t 7 w u 6 x v 8 y w, x 10 z y 21 draw the precedence diagram of the process. What is the minimum possible cycle time?
Determine two to four disadvantages of Buy American Act provides to small or large businesses that sell to the government. Speculate on why so many companies still sell to the government in spite of these disadvantages.
How does PAC provide feedback on costs, efficiency, utilization, and schedule performance? What specific examples can you provide?
Why has it been important for Perry Ellis International to give freedom to a new venture team in order torelaunch Original Penguin?
What is CEO Toback's most pressing concern and how could he go about addressing this concern?
Compare the result in (a) to the probability that a fatality involved a rollover and comment on whether SUVs, Vans, and pickups are generally more prone to rollover accidents that other vehicles.
explain the difference between profit and contribution in an objective function. Why is it important for the decision maker to know which of these the objective function coefficient represent?
When is the best time in the research process to start searching for participants? You are in charge of a project that is investigating the effects of gender differences on the reading scores of first, third, and fifth grades in three different schoo..
Describe a specific well functioning team you performed on; the role you played, the goal of the team, the positive attributes of the project and why you believed the team was successful - related back to the specifics of team development.
As part of a major plant renovation project, the industrial engineering department has been asked to balance a revised assembly operation to achieve an output of 240 units per eight-hour day.
describe your most memorable experience with a salesperson that was positive and made you feel comfortable.
identify elements of Nissan Altima value chain. Where can information be used to decrease costs or increase customer satisfaction or both? Explain.
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