Finance  : ABC Company has projected Sales of $2,455 in January

Subject: Business    / Finance
Question

QUESTION 3

ABC Company has projected Sales of $2,455 in January. The sales are expected to grow by 2% each month. ABC’s collection schedule is as follows: ABC collects 39 percent of its sales in the month of sale and the remainder is collected in the following month. What is the amount of the March cashcollections?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as12.35 in the answer box.

1 points

QUESTION 4

ABC Company sells 2,991 chairs a year at an average price per chair of $146. The carrying cost per unit is $35.21. The company orders 345 chairs at a time and has a fixed order cost of $68 per order. The chairs are sold out before they are restocked. What are the total shortage costs? Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 5

ABC’s last dividend paid was $8.16, its required return is 19%, its growth rate is 7%. What is ABC’s expected stock price in 19 years?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 6

A company sells 139,364 units per year. Fixed costs per order are $176 and carrying cost is $24 per unit per year. What is the Economic Order Quantity? Enter your answer rounded off to two decimal points.

1 points

QUESTION 7

Suppose that today’s stock price is $32.98. If the required rate on equity is 15.1% and the growth rate is 8.5%, compute the expected dividend (i.e. compute D1)Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 8

ABC Inc. last paid an annual dividend of $3.4.The dividends are expected to grow by 5.2% each year. What is the amount of expected dividend in Year 19. That is, what is D19?Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 9

ABC’s next dividend is expected to be $0.68, its required return is 24%, its growth rate is 7%. What is ABC’s expected stock price in 11 years?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 10

ABC Company has annual sales of $628,885. The cost of goods sold are $432,208. The firm has an accounts receivable balance of $15,425 and an accounts payable balance of $31,027. How many days does it take the firm to pay its suppliers? Assume 365 days.Enter your answer rounded off to two decimal points.

1 points

QUESTION 11

The common stock of ABC Industries is valued at $88.33 a share. The company increases their dividend by 4.2 percent annually and expects their next dividend to be $3.07. What is the required rate of return on this stock?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 12

Annual demand 152,110 unitsCarrying costs $0.52 per unitFixed Costs per order $4.2Number of orders 23What are the total costs?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

1 points

QUESTION 13

The exchange rates in New Yorkare:$1=AUD1.113and$1=£0.658A dealer is offering aquote:AUD1= £0.7617.What is the profit you can earn on$24,541using triangle arbitrage?Enter your answer round off two two decimal points.

1 points

QUESTION 14

ABC Inc.’s stock is currently selling for $83.6 per share. The company just paid its first annual dividend of $4.8 a share. The firm plans to increase the dividend by 7.1 percent per year indefinitely. What is the firm’s cost of equity?Enter your answer in percentages rounded off to two decimal points.

1 points

QUESTION 15

Suppose you have the following information:$1 = £0.6662 $1 = C$1.2401 What is the £/C$ cross rate? Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

1 points