Reference no: EM132585948

Case 1 : S. Company produces the product X, the data related to sales, and production as follows:

                                Dec             Jan            Feb                Mar

Sales units              20000           30000       40000    50000

Unit selling price      $ 10                 20           20         20

End. Finished goods units 2000         4000        5000    6000

Beg. Finished goods units    ?                  ?        ?            ?

Required:

Question a: Prepare the following Budgets for the first quarter:

1- Sales Budget

2- Production Budget

Case 2 : If the return on treasury bills is 10% and the EGX30 gives a return value of 12%.

Question b: Calculate the RRR if the company has a beta of 0.7? Determine whether the stock is overvalued or undervalued if R^ is 7%?