post university fin 201 unit 3 case problem 3 post university fin 201 unit 3 case problem 3 Question Answer the following questions. Be sure to show all your work- not just the answer. Follow this format: cite the formula, then plug in numbers, then compute to show your final answer.Q1 through 10 are worth 4 points each; Q11a, Q11b, Q12, and Q13 are worth 15 points each. Be sure to solve according to the method that is requested.1. What is the Rule of 72 ?2. Solve using the Rule of 72: rate = 8%, years = 18, pv = $7,000. Solve for fv.3. Solve, using the Rule of 72 rate = 4%, years = 18, fv=$8,000. Solve for pv.4. Solve, using the Rule of 72: rate =6%, pv=$7,000, fv= $56,000. Solve for years.5. Solve, using the Rule of 72: pv=$10,000; fv=$160,000; years=10. Solve for rate.Q6-Q9. Use appropriate tvm table in your textbook's appendix to solve Q6-Q9. For each question, cite the appropriate table that you are using, show the formula, and then plug-in your numbers to solve. Show all your work.Q6 pv= $7,200 rate = 7% periods = 15 Solve for fvQ7 fv=$15,000 rate = 15% periods = 10 Solve for pvQ8 payment = $6,000 interest rate =8% number of periods = 10 Solve for pvaQ9 payment = $4,000 interest rate =10% number of periods = 20 Find fvaFor Q10-Q13, you many use tvm tables, a financial calculator, or excel to solve. Be sure to show all the steps in your work: factors & formula if you use the tables; keystrokes if you use a financial calculator; or formulas if you use excel.Q10. Stressed and penniless after months of day trading, Mr. Baruch decides to invest his savings into a conservative growth mutual fund. He plans to retire in 30 years and wants to make annual deposits into his IRA in order to accumulate a sum of $450,000 at the end of the 30 years. Mr. Baruch expects to earn 10% per year, on average, in his mutual fund. What should be the amount of Baruch's annual contributions ?Q11. On the way to Stop&Shop, you buy a lottery ticket and win $100,000. The catch is that the money will be paid to to you in two installments: $50,000 today, and $50,000 at the end of 5 years from now.Q11-a: Assuming an interest rate of 8%, what is the present value of your total lottery payments ?Q11-b: Suppose that you invest the $50,000 winnings that you receive today and earn 8% annually for the next 5 years. What is the future value of your total lottery payments ?12. Investor G. Loeb owns a 5-year, $1000 bond with a 5% coupon. If the yield to maturity on similar bonds is currently 10%, what is Mr. Loeb's bond worth today ?13. A security analyst is forecasting dividends for Boston Electric over the next four years, as follows: $1 (Y1), $1.50 (Y2); $2.00 (Y3); $2.75 (Y4). In addition, the analyst expects that the stock could be sold for $62.25 four years from now. If the required return on the stock is 8%, what is the stock worth today?
Question_File5_9Dec_4th Question_File5_9Dec_4th Question 91.In choosing a method of test marketing, Best Bargain finds that superfast productdevelopment can be riskier and more costly than the other methods. It often createsincreased organizational tension and confusion. Best Bargain must be thinking about thesimultaneous team-based approach.92. The highest profits earned by a consumer product usually occur during the maturity stage.(False; Using the PLC concept to develop marketing strategy can be difficult because strategy isboth a cause and a result of the product’s life cycle.93. The maturity stage of the PLC is characterized by a slowdown in sales growth.94. During the introduction stage, a company that acts as a market planner must choose alaunch strategy that is consistent with the intended product and company image.100. Why do profits rise during the growth stage of the PLC? It is because promotion costsare spread over a large volume and unit manufacturing costs fall.101. Although products that remain in the maturity stage of the PLC seem unchanged, the mostsuccessful ones actually evolve to meet changing consumer needs.102. When sales of a product falter during the PLC, a company can take several approaches.The more common ones are to modify the marketing mix, modify the product, modify themarket, or add new features that expand the product’s safety, usefulness, or convenience.103. Sales for the time-tried household cleansers made by Brite and New, Inc., have beendeclining for some time. If these products are typical, sales are declining because oftechnological advances, shifts in consumer tastes, or lack of raw materials from foreignsuppliers.239104. Companies need to pay more attention to their aging products. Management must regularlyreview sales, market shares, costs, and profit trends. The next step is to decide whether toharvest or drop these declining products.105. When a company decides to harvest a product in the decline stage, it will reduce costs andhope that sales hold up to increase the profits in the short run.Essay106. Given the rapid changes in consumer tastes, technology, and competition, companies mustdevelop a steady stream of new products and services. Briefly explain the common ways ofaccomplishing this.107. Explain why so many new products fail and provide some ideas for a company to improve itsodds of new product success..108. Briefly describe the steps in the new-product development process.109. Provide the major sources of external new product ideas and explain why these sourcesoffer advantages over internal sources..240110. What are the two advantages of an idea management system for developing new products?Provide five ideas for a company to use to accomplish a successful system.111. Define commercialization. During the product launch stage, the company must first decideon two important issues. Explain.112. Each product will have a life cycle, although its exact shape and length is not known inadvance. Briefly explain each step in the PLC.113. Your assignment is to prepare a presentation about the application of the PLC to as many ofyour company’s operations as possible. What would you include?114. Distinguish among a product idea, a product concept, and a product image.115. Explain concept testing.APPLICATION CONTENT: Multiple-Choice Questions241116. Your firm added three new products earlier this year to add variety for customers. Two ofthem failed to reach even minimal sales. What could be a possible cause?a. The market size may have been overestimated.b. The actual products may not have been designed as well as they should have been.c. The products were not positioned correctly in the market.d. All of the above.e. None of the above.117. Your firm added three new products earlier this year to add variety for customers. Two ofthem failed to reach even minimal sales. What could possibly not be a cause?a. The products were priced too high.b. The products were advertised incorrectly.c. Competitors fought back harder than expected.d. Research was too extensive.e. B and D118. Once management of The Grecian Urn has decided on its product concept and marketingstrategy, they can evaluate the business attractiveness of the proposal called _____.a. business feasibilityb. feasibility studyc. business analysisd. product acceptancee. concept testing119. Wainwright Industries has built a new prototype riding lawnmower especially for women.Joe Wainwright and his staff have incorporated the functional features and must nowconvey the _____.a. imageb. advertisingc. safety featuresd. intended psychological characteristicse. visual characteristics242120. Mattel’s Barbie is an example of an age-defying product. Barbie, both timeless and trendy, isin the _____ stage of the PLC.a. introductionb. growthc. maturityd. declinee. adoption
The Diamond Glitter Company is in the process of preparing The Diamond Glitter Company is in the process of preparing Question The Diamond Glitter Company is in the process of preparing its financial statements for 2012. Assume that no entries for depreciation have been recorded in 2012. The following information related to depreciation of fixed assets is provided to you. 1. The company purchased equipment on January 2, 2009, for $165,000. At that time, the equipment had an estimated useful life of 7 years with a $25,000 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2012, as a result of additional information, the company determined that the equipment has a remaining useful life of 3 years with a $15,000 salvage value. 2. During 2012, the company changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $625,000. It had a useful life of 10 years and a salvage value of $50,000. The following computations present depreciation on both bases for 2010 and 2011. 2011 2010 Straight-line $ 57,500 $ 57,500 Declining-balance $ 92,000 $ 115,000 3. The company purchased a machine on July 1, 2010, at a cost of $450,000. The machine has a salvage value of $25,000 and a useful life of 10 years. The company's bookkeeper recorded straight-line depreciation in 2010 and 2011 but failed to consider the salvage value. Ignore Tax effect. 4. The company has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. December 31, 2011 $ 5,400 December 31, 2012 $ 4,600 5. In reviewing the December 31, 2011, inventory, the company discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. The company has already made an entry that established the incorrect December 31, 2012, inventory amount. December 31, 2010 Understated $ 32,000 December 31, 2011 Understated $ 51,000 December 31, 2012 Overstated $ 9,500 6. At December 31, 2012, the company decided to change to the straight -line method depreciation method on its retail display equipment from double-declining-balance. The equipment had an original cost of $250000 when purchased on January 1, 2011. It has a salvage value of 0 and a 8-year useful life. Depreciation expense recorded prior to 2012 under the double-declining-balance method was $62500. The company has already recorded 2012 depreciation expense of $46875 using the double-declining-balance method. 7. Before the current year, the company accounted for its income from long-term construction contracts on the completed-contract basis. Early this year, the company changed to the percentage-of-completion basis for accounting purposes but continues to use the completed-contract method for tax purposes. Income for the current year has been recorded using the new method. Prior year tax effects must be considered. The following information is available. Pretax Income Percentage-of-Completion Completed-Contract Prior to 2012 $320,000 $180,000 2012 $140,000 $120,000 Required: Prepare the journal entries necessary at December 31, 2012, to record the corrections and changes made to date related to the information provided. The books are still open for 2012. The income tax rate is 35%. The company has not yet recorded its 2012 income tax expense and payable amounts so current-year tax effects may be ignored.
Crypton Electronics has a capital structure consisting of 40 Crypton Electronics has a capital structure consisting of 40 Question 1. (WACC) Crypton Electronics has a capital structure consisting of 40% common stock and 60% debt. A debt issue of $1000 par value, 50% bonds that mature in 15 years and pay annual interest will sell for $975. Common Stock of the firm is currently selling for $30.83 per share and the firm expects to pay a $2.28 dividend next year. Dividends have grown at the rate of 4.7% per year and are expected to continue to do so for the foreseeable future. What is Crypton's cost of capital where the the firm's tax rate is 30%? bond rate is 5.9%Crpton's cost of capital is _______%. (round to three decimal places.)2. (WACC) The target capital sturctue for Jowers Manufacturing is 45% common stock, 11% preferred stock, and 44% debt. If the cost of common equity for the firm is 19.5%, the cost of preferred stock is 11.9%, and the beforetax cost of debt is 10.4%, what is Jowers' cost of capital? The firm's tax rate is 34%.Jowers' WACC is ______%. (Round to three decimal places.)3. (WACC) As a member of the Finance Department of Ranch Manufacturing, your supervisor has asked you to compute the appropriate disxount rate to use when evaluating the purchase of new packaging equipment for the plant. Under the assumption that the firm's present capital structure reflects the appropriate mix of capital sources for the firm, you have determined the market value of the firm's capital structure as follws:Source of Capital Market ValuesBonds $4,500,000Preferred stock $2,100,000Common Stock $6,200,000 #3. To finance the purchase, Ranch Manufacturing will sell 10-year bonds paying 7.1% per year at the market price of $1,062. Preferred stock paying a $1.98 dividend can be sold for $25.86. Common stock for Ranch Manufacturing is currently selling for $55.33 per share and the firm paid a $2.99 dividend last year. Dividends are expected to continue growing at a rate of 4.5% per year into the indefinite future. If the firm's tax rate is #0%, what discount rate should you use to evaluate the equipment purchase? Ranch manufacturing's WACC is _______%. (round to three decimal places. 4. (EBIT-EPS analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail otlets to distribute and service a full line of vacuum cleaners and accessories. Theese stores would be located in Dallas, Houston, and San Antonio. To finace the new venture two plans have been propsed:-plan A is an all-common-equity strucre in which $2.1 million dollars would be raised by selling 82,000 shares of common stock.-Plan B would nvolve issuing $1.4 million dollars in long-term bonds wit an effective interest rate of 12.4% plus $0.7 million wold be raised by selling 41,000 shares of common stock. The debt fnds raised under Plan B have no fixed maturity date, in that this amount of financial leverage is considered a permanent part of the firm's capital structure.Abe and his partners plan to use a 38% tax rate in their analysis, and they have hired you on a consulting basis to do the following:A. Find the EBIT indifference level associated with the two financing plans.B. Prepare a pro forma income statement for the EBIT level solved for in Part a. that shows that EPS will be the same regardless whether Plan A or B is chosen.a. Find the EBIT indifference level associated with the two financing plans is $________. (round to the nearest dollar.)b. Prepare a pro forma income statement for the EBIT level solved for in part a. that shows that EPS will be the same regardless whether Plan A or B is chosen.Complete the segment of the income statement for Plan A below: (round income statement amounts to the nearest dollar except the EPS to the nearest cent.)Stock PlanEBIT $____________Less: Interest expense ____________Earnings before taxes ______________Less: Taxes at 38% _____________Net Income ____________Number of Common Shares ____________EPS ____________Complete the segment of the income statement for Plan B below: (round income statement amounts to the nearest dollar except the EPS to the nearest cent.)Bond/Stock PlanEBIT $____________Less: Interest Expense ____________Earnings Before Taxes ____________Less: Taxes at 38% ____________Net Income ____________Number of common shares ____________EPS _____________
Economics problems Economics problems Question P7-1. A very small country’s gross domestic product is $12 million.a. If government expenditures amount to $7.5 million andgross private domestic investment is $5.5 million, whatwould be the amount of net exports of goods and services?P7-2. How would your answer change in Problem 1 if the gross domesticproduct had been $14 million?P8-1. Assume investors expect a 2.0 percent real rate of return over thenext year. If inflation is expected to be 0.5 percent, what is theexpected nominal interest rate for a one-year U.S. Treasury security?P8-4. A thirty-year U.S. Treasury bond has a 4.0 percent interest rate. Incontrast, a ten-year Treasury bond has an interest rate of 3.7 percent.If inflation is expected to average 1.5 percentage points over both thenext ten years and thirty years, determine the maturity risk premiumfor the thirty-year bond over the ten-year bond.P8-6. You are considering an investment in a one-year government debtsecurity with a yield of 5 percent or a highly liquid corporate debtsecurity with a yield of 6.5 percent. The expected inflation rate forthe next year is expected to be 2.5 percent.a. What would be your real rate earned on either of the twoinvestments?b. What would be the default risk premium on the corporatedebt security?P8-12. A Treasury note with a maturity of four years carries a nominalrate of interest of 10 percent. In contrast, an eight-year Treasurybond has a yield of 8 percent.a. If inflation is expected to average 7 percent over the first fouryears, what is the expected real rate of interest?b. If the inflation rate is expected to be 5 percent for the firstyear, calculate the average annual rate of inflation for years2 through 4.c. If the maturity risk premium is expected to be zero betweenthe two Treasury securities, what will be the average annualinflation rate expected over years 5 through 8?
ABC Company’s current financial information ABC Company’s current financial information Question ABC Company's current financial information (before/without expansion) Dec. 31,20X2 Dec. 31,20X1 Cash $50,000 $70,000 Accounts receivable (net) $120,000 $180,000 Merchandise inventory $350,000 $280,000 Property plant, & equipment $400,000 $300,000 Less: Accumulated depreciation ($170,000) ($100,000)Total assets $750,000 $730,000 Accounts payable $250,000 $210,000 Income taxes payable $40,000 $10,000 Common stock $240,000 $240,000 Retained earnings $220,000 $270,000 Total liabilities & stock, equity $750,000 $730,000 The firm's accrual-basis income statement revealed the following data: Sales $1,200,000 Cost of goods sold $800,000 selling and administrative expenses $250,000 Depreciation expense $70,000 Income taxes $30,000 Dividends declared and paid during 19X2 $100,000 ABC purchased $100,000 of equipment for cash on August 14. (There was no interest expense.) Current company cash flow a. You need to complete a cash flow statement for the company using the direct method. b. Once you’ve completed the cash flow statement, answer the following questions: i. What does this statement of cash flow tell you about the sources and uses of the company? ii. Is there anything ABC Company can do to improve the cash flow? iii. Can this project be financed with current cash flow from the company? Why or why not? iv. If the company needs additional financing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company obtain the additional financing, equity or corporate debt, and why?
Media Advertising Media Advertising Question Assume you are performing your due diligence to develop an advertising approach for a product you think will best be served by using social media.Part I: Identify the product and what form of social media you would use to advertise this media. Part II: Create a checklist you would follow to deploy this ad. Part III: Close the loopIn bullet format, provide three (3) risks associated with the approach you selected.Then, identify what selling tactic would best align with your goals.In two (2) paragraphs, describe how advertising on the Internet could lead to profitability.Assignment must follow these formatting requirements:Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
general business data bank general business data bank Question 1) A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. A) pricing by-product B) pricing structure C) pricing loop D) pricing cycle E) pricing bundle 2) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. A) market-level pricing B) market-competitive pricing C) market-skimming pricing D) market-price lining E) market-price filling 1 3) Of the following, which statement would NOT support a market-skimming policy for a new product? A) The product's quality and image support its higher price. B) Enough buyers want the products at that price. C) Competitors are not able to undercut the high price. D) Competitors can enter the market easily. E) C and D 4) HiPoint Telephone Company uses two-part pricing for its long-distance call charges. Because this is a service, the price is broken into a fixed rate plus a ________. A) fixed rate usage B) variable usage rate C) standard usage rate D) market usage rate E) none of the above 5) Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing. A) product bundle B) optional-product C) captive-product D) by-product E) skimming 6) Keeping in mind that a seller must sell by-products at a price that covers more than the cost of storing and delivering them, which of the following will by-product pricing permit a seller to do? A) increase the main product's price B) make extra profit C) reduce the main product's price D) none of the above E) B and C 7) With product bundle pricing, sellers can combine several products and offer the bundle ________. A) as a working unit B) at a reduced price C) as a complete self-service package D) as a reward to loyal customers E) as segmented pricing 8) What is a major advantage of product bundle pricing? A) It can promote the sales of products consumers might not otherwise buy. B) It offers consumers more value for the money. C) It combines the benefits of the other pricing strategies. D) It provides a more complete product experience for consumers. E) All of the above. 9) Which of the following is NOT a price adjustment strategy? A) segmented pricing B) promotional pricing C) free samples D) geographical pricing E) seasonal pricing 10) Service Industries, Inc., plans to offer a price-adjustment strategy in the near future. They could consider each of the following EXCEPT ________. A) discount and allowance pricing B) segmented pricing C) physiological pricing D) promotional pricing E) location pricing 11) Consumer use price less to judge the quality of a product when they ________. A) lack information B) lack skills to use the product C) have experience with the product D) are shopping for a specialty item E) cannot physically examine the product 12) Michael and John both own leather jackets and are currently shopping for two new ones. They both have prices in mind and refer to them when shopping. These prices are termed ________. A) psychological prices B) reference prices C) comparison prices D) price points E) skimmed prices 13) Which of the following refers to the prices that a buyer carries in his or her mind and refers to when looking at a given product? A) target prices B) reference prices C) promotional prices D) geographical prices E) dynamic prices 14) Price escalation in international markets may result from four of these five marketing conditions. Which one will have the LEAST effect? A) the additional cost of physical distribution B) exchange-rate fluctuations C) market stability D) higher costs of selling E) language barriers 15) There are many reasons why a firm might consider cutting its price. All of the following are among them EXCEPT ________. A) excess capacity B) falling demand in the face of strong price competition C) a drive to dominate the market through lower costs D) monopolistic competition E) a drive to gain market share and cut costs through volume 16) Which of the following is a reason for a company to raise its prices? A) to address the issue of overdemand for a product B) to win a larger share of the market C) to use excess capacity D) to boost sales volume E) to balance out decreasing costs 17) Which of the following is a major factor that influence price increases? A) cost inflation B) surplus of raw materials C) government intervention D) foreign competition E) B and C 18) Competitors are most likely to react to a price change when ________. A) the number of firms involved is small B) the purchase is uniform C) the buyers are not well informed D) A and B E) all of the above 19) Price discrimination is legal under which of the following conditions? A) when a manufacturer and reseller have agreed upon a specified retail price for a product B) when a manufacturer sells to retailers in different markets C) when a seller can prove its costs are different when selling to different retailers D) when a seller advertises prices that are not actually available to consumers E) when a seller has not communicated with competitors before announcing prices 20) Price discrimination may be used to match competition as long as the strategy is temporary, localized, and ________. A) defensive B) offensive C) published D) private E) used in all channels 21) When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive. 22) When using product bundle pricing, sellers combine several of their products and offer the bundle at an increased price for increased profit. 23) Most companies adjust their basic prices to account for various customer differences and changing situations. 24) A seasonal discount is a price reduction to buyers who buy merchandise or services while they are in season. 25) Manufacturers may offer functional discounts within trade channels for channel members who store inventory. 26) The basic difference between customer-segment pricing and product-form pricing is that the latter offers alternative versions of the product that are priced differently but not according to differences in their costs. 27) Segmented pricing is known by other names; two of the most common are revenue management and yield management. 28) A company considering a price change should be more concerned about consumers' reactions than competitors' reactions. 29) Your company may respond to a competitor's price reduction by launching a low-price fighting brand. This is likely necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality. 30) State and federal governments accept some reasons for price-fixing when it does not limit competition.
general business data bank general business data bank Question 1. Like financial accounting, most business property must be capitalized for tax purposes. 2. Tax cost recovery methods include depreciation, amortization, and depletion. 3. If a business mistakenly claims too little depreciation, the business must only reduce the asset's basis by the depreciation actually taken rather than the amount of the allowable depreciation. 4. An asset's capitalized cost basis includes only the actual purchase price; whereas the other expenses associated with the asset are immediately expensed. 5. The basis for a personal use asset converted to business use is the lesser of the asset's cost basis or fair market value on the date of the transfer or conversion. 6. Depreciation is currently computed under the Modified Accelerated Cost Recovery System (MACRS). 7. The 200 percent or double declining balance method is allowable for five and seven year property. 8. Taxpayers may use historical data to determine the recovery period for tax depreciation. 9. Taxpayers use the half-year convention for all assets. 10. If a taxpayer places only one asset (a building) in service during the fourth quarter of the year, the midquarter convention must be used. 11. The MACRS depreciation tables automatically switch to the straight-line method when it exceeds the declining balance method. 12. If tangible personal property is depreciated using the half-year convention and is disposed of during the first quarter of a subsequent year, the taxpayer must use the mid-quarter convention for the year of disposition. 13. If a machine (seven-year property) being depreciated using the half-year convention is disposed of during the seventh year, a taxpayer must multiply the appropriate depreciation percentage from the MACRS table percentage by 50 percent to calculate the depreciation expense properly. 14. Real property is always depreciated using the straight-line method. 15. The mid-month convention applies to real property in the year of acquisition and disposition. 16. All taxpayers may use the section 179 immediate expensing election on certain property. 17. The section 179 immediate expensing election phases out based upon a taxpayer's taxable income. 18. The section 179 immediate expensing election phases out based upon the amount of tangible personal property a taxpayer places in service during the year. 19. Property expensed under the section 179 immediate expensing election is not included in the 40 percent test to determine whether the mid-quarter convention must be used. 20. In general, a taxpayer should select longer-lived property for the section 179 immediate expensing election. 21. Occasionally bonus depreciation is used as a stimulus tool by tax policy makers. 22. Business assets that tend to be used for both business and personal purposes are referred to as listed property. 23. If the business use percentage for listed property falls below 50 percent, the only adjustment is all future depreciation must be calculated under the straight-line method. 24. Significant limits are placed on the depreciation of luxury automobiles. 25. The alternative depreciation system requires both a slower method of recovery and longer recovery
MATH 201 – Statistics Assignment Week – 8 MATH 201 – Statistics Assignment Week – 8 Question MATH 201 - Statistics Assignment Week - 8 , Attachments (5780.72 KB)