Forecast for the next year sales using naive approach

Assignment Help Financial Management
Reference no: EM131917901

1. Suppose a firm has had the following historic sales figures. year: 2012 2013 2014 2015 2016 Sales: $2,900,000 $3,150,000 $2,800,000 $3,400,000 $3,000,0000 What would be the forecast for the next year's sales using the naive approach?

2. Peach Sign Company of Atlanta, GA has credit terms of 1/10 net 30. Customers should take the discount and pay in 10 days if they CANNOT earn more than ________ (APR) on their investments.

Reference no: EM131917901

Questions Cloud

What would risk-free rate have to be for two stocks : What would the risk-free rate have to be for the two stocks to be correctly priced?
What is the equivalent annual annuity for each machine : Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. What is the equivalent annual annuity for each machine?
Surface treating gravel surface without any change in length : A secondary road in a developing country, 30 km long is to be improved by surface treating the gravel surface without any change in length.
Exchange rates and arbitrage : The 180-day forward rate on the Norwegian krone would have to be Kr/$ to prevent arbitrage.
Forecast for the next year sales using naive approach : What would be the forecast for the next year's sales using the naive approach?
Used to discount the stream of cash flows : Use the information provided at the bottom of the sheet to calculate the cost of capital of XYZ Corporation to be used to discount the stream of cash flows.
Spot versus forward rates : Suppose the spot and three-month forward rates for the yen are ¥79.80 and ¥79.12, respectively.
Using spot and forward exchange rates : Which is worth more, a U.S. dollar or a Canadian dollar? Which currency is expected to appreciate in value?
What rate of return would they be? earning : what return they would be making on their investment of ?$15,854.02. What rate of return would they be? earning?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate wacc for parrothead enterprises

An expected return of 10.2 percent, a risk-free rate of 5.15 percent, and a 38 percent tax rate. Calculate the WACC for Parrothead Enterprises.

  What is the equity risk premium and required rate of return

Calculate for Best Inc., assuming that (1) investors expect a 2.5% rate of inflation in the future, (2) the real risk-free rate is 1.5%, (3) the market risk premium is 3.0%, (4) the firm has a beta of 1.50, and (5) its realized rate of return has ave..

  What legislative change and financial innovations occurred

What legislative change and financial innovations occurred after 1979 that changed M1 from representing a pure medium of exchange to also representing a store of value?

  What is the required rate of return on AAs stock

What is the required rate of return on AA's stock?

  Dollars at nominal value of the bond at issue on par

Suppose we have bought 100 millions dollars at nominal value of the bond at issue on par.

  About the interest rate

What interest rate would make it worthwhile to incur a compensating balance of $20,000 in order to get a 1 percent lower interest rate on a 1 year, pure discount loan of $275,000?

  Systematic versus unsystematic risk

Systematic versus Unsystematic Risk (LO2, CFA4) Consider the following information on Stocks I and II:

  Fund manager buys traded european put options

A fund manager has a well-diversified portfolio that mirrors the performance of the S&P 500 and is worth $450 million. The value of the S&P 500 is 1,250 and the portfolio manager would like to buy insurance against a reduction of more than 6% in the ..

  What are the total shortage costs

ABC Company sells 4,595 chairs a year at an average price per chair of $144. The carrying cost per unit is $39.13. The company orders 486 chairs at a time and has a fixed order cost of $71.1 per order. The chairs are sold out before they are restocke..

  Explain current liabilities

Explain current liabilities A current liability is an obligation that is due within one year of the date of a company balance sheet and will require the use of a current asset of will create another current liability. If a company operating cycle is ..

  The black scholes option pricing model

Assume that you have been given the following information on Purcell Industries: Current stock price= 15 strike price of option =15 risk free rate = 6% n(d1)=0.59675 n(d2)=0.50000 time to maturity of option= 6 months variance of stock return =0.12 d1..

  Earn the yield to maturity over the life of the bond

Why is it so rare for a bond holder to earn the yield to maturity over the life of the bond?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd