Offer does not affect carry-alls other planned operations

Assignment Help Financial Management
Reference no: EM131350578

Carry- all plans to sell 1300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. variable cost are projected to be $20 per unit. micheal company offers to pay $20,800 to buy 600 units from carry-all. total fixed cost are 7000 per year. This offer does not affect carry-alls other planned operations. the incremental revenue for this situation are

Please show work.

Reference no: EM131350578

Questions Cloud

What will be the forecast for year-end net income : Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 11% higher than the $3 billion in sales generated last year. The tax rate is expected to remain at 40%. On the basis of that info..
Account balance in his traditional : Assume that Alex is 74 years old at the end of year tired, and that his marginal tax rate us 25 percent his account balance in his traditional 401k was 1,250.000 at the end of last year. what is the minimum distribution Alex must receive from his 401..
What is the company total book value-market value : Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 8 percent 3 years ago. The bond currently sells for 96 percent of its face value. The company’s tax rate is 35 percent. The book value of the debt issue is ..
Valued at for purposes of the capital budgeting analysis : Your company purchased a piece of land five years ago for $150,000 and subsequently added $175,000 in improvements. The current book value of the property is $225,000. In consideration of the factory project, what amount (if any) should the land be v..
Offer does not affect carry-alls other planned operations : Carry- all plans to sell 1300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. variable cost are projected to be $20 per unit. micheal company offers to pay $20,800 to buy 600 units from carry-all. total fixed cost are 700..
What is the market risk premium : The market has an expected rate of return of 11.2 percent. The long-term government bond is expected to yield 5.8 percent and the U.S. Treasury bill is expected to yield 3.9 percent. The inflation rate is 3.6 percent. What is the market risk premium?
Business in industry in which it currently does not operate : Why company choose to merge with or acquire another company to expend its business in an industry in which it currently does not operate?
What is duration if the yield to maturity : Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.7%. What is the duration if the yield to maturity is 10.7%?
What will be an investor taxable income from the bond : A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $780. The bond will not be sold at the end of the year. The bond is treated as an original-issue discount bond. Calculate the constant y..

Reviews

Write a Review

Financial Management Questions & Answers

  What is its cost of equity if the corporate tax rate

A firm has a debt-to-equity ratio of 1.75. If it had no debt, its cost equity would be 9%. Its cost of debt is 7%. What is its cost of equity if the corporate tax rate is 50%?

  What would be the present value of a yearly annuity

What would be the Present Value of a yearly annuity of $105 per year for 10 years, if the appropriate rate of interest is 4.5% per year and the first payment arrives TODAY?

  Calculate mcpherson companys postmerger earnings per share

Calculate the McPherson Company's postmerger earnings per share if the McAlester stockholders accept an offer of $20 a share in a stock-for-stock exchange.

  Revenues generated by a new fad product are forecast

Revenues generated by a new fad product are forecast as follows: Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues the following year. The product requires an immediate investment..

  Probability state of of state of rate of economy

Given the following information, what is the standard deviation for this stock? Probability State of of State of Rate of Economy Economy Return Boom 0.05 0.15 Normal 0.65 0.08 Recession 0.30 -0.05

  What is the loan balance at the end of the fifth year

Compute the payments at the beginning of each year (BOY).- What is the loan balance at the end of the fifth year?

  With no corresponding increase in current liabilities

Provo, Inc., had revenues of $10,000,000, cash operating expenses of $5,000,000, and depreciation and amortization of $1,000,000 during 2015. The firm purchased $500,000 of equipment during the year while increasing its inventory by $300,000 (with no..

  Find solution using the mathematical equivalence formulae

Find the solution using the mathematical equivalence formulae (such as F=P(1+i)n ), substitute and solve (with your calculator – not with the tables) for the final answer. Solve by using the proper equivalence expressions (such as F = P(F/P, i, n)) a..

  What is the annual rate of return on this project

Erickson s is considering a project with an initial cost of $623,000. The project will produce cash inflows of $33,500 monthly for 21 months. What is the annual rate of return on this project?

  Based on firms current practice-average daily cash balance

Firm Y expects a total cash need of $14,500 over the next 4 months. They have a beginning cash balance of $2,500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $3.50. Based on the firm's..

  Defined benefit plan in retirement saving plans

For home owner insurance policy (HO3), there is a 80% rule. It is actually a coinsurance clause applied to the building structures. Explain what it means and how does it work? In employee benefits chapter, can you explain why employers are interested..

  What is the firm market value capital structure

A. What is the firm's market value capital structure? B. If Titan Mining is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows?

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