| | | | | * Question 4 2 out of 2 points | | | Using the data below, determine the amount of consumer surplus, if any, in the market. The market clearing price for matinee tickets is $3 | Matinee TicketsWilling to Pay(WTP) | Tony | $1 | George | $2 | Deshon | $3 | Mario | $4 | Antonio | $5 | Brittney | $6 | | | | | | Selected Answer: | $6 | | | | | * Question 5 2 out of 2 points | | | Examine the graph below. The government has placed a $200 tariff on product z. The new equilibrium price is $600. What has happened to consumer surplus?
Note also that the interest rate we must use is a simple discount rate. The data can be displayed on a time line. | | | | | $800,000 | | | | 0 | 39 | 123 | | $P | | | | | P | = | Price | = | unknown | | S | = | Face value | = | $800,000 | | d | = | Simple discount rate (decimal) | = | 4.7 | 100 | | = | 0.047 | | t | = | Time period (years) | = | 84 | 365 | | = | 0.23013699... years | | The step-by-step calculation is: P | = | S(1 - dt) | | | = | 800,000(1 - 0.047 x 0.23013699...) | | | = | 800,000 x 0.98918356... | | | = | $791,346.85 | Rounded as last step | c)This is not
$600,000 Chapter 18 In-Class Problems (with solutions) ACG3151 How much of the dividend will be paid to the common shareholders, and how much will be paid to the preferred shareholders? Common Shareholders=$10,000 Preferred Shareholders=$80,000($60,000 cumulative, $20,000 participating) 3. Tom, Inc. issued 1,000,000 shares of $2 par common stock in 2005 for $9 per share. In 2008 Tom, Inc. repurchased 100,000 shares at a price of $8 per share. On March 30, 2009 they decide to resell 50,000 shares at a price of $13 per share.
GAAP? Explain in detail. (TCO C) (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts. Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department.
Our Total Current Liabilities are as follows: Accounts Payable 96,500 Sales Tax Payable 3,950 Payroll Tax Payable 15,840 and our Total Long Term Liabilities are the following: Long Term Notes Payable 630,000 Therefore, the Total Liabilities we have is $ $746,290 and our Total Assets is $2,675,250. 746,290 / 2,675,250 = 0.27 or 27%. The Acid Test Ratio or Quick Ratio for the company is computed as follows: Cash $1,430,000 Accounts Receivable $86,000 Short Term Investment $0 = $1,516,000 Current Liabilities $116,290 $1,516,000/$116,290 = 13.036 or 13.07 With this result, our financial statement is showing that our company can immediately convert a portion of our assets into cash to pay our short term debts. The Inventory Turnover of the company is computed as follows: Cost of Goods Sold $8,474,831 Less: Ending Inventory $429,090 $8,474,831/$429,090 = 19.75 or 19.8 times The Receivables Turnovers of the company is computed as follows: Total Net Sales $10,796,200 Accounts Receivable $86,000 $10,796,200/$86,000 = 125.5 times MY SHARE OF THE MEMO This memo is to discuss the liquidity ratio that was performed recently in regards to Kudler Fine Foods. The liquidity ratio that was performed indicated that the amount of the company’s
5) Information about Clearwater Company's direct materials cost follows: Standard price per materials ounce $ 100 Actual quantity used 8,700 grams Standard quantity allowed for production 9,100 grams Price variance $ 76,125 F ________________________________________ Required: What was the actual purchase price per gram? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Actual purchase price $ 91.25 Total grade: 0.0×1/1 = 0% Feedback: Actual Costs = AP × 8,700 Actual Inputs at Standard Price = $100 × 8,700 =$870,000 Price Variance = $76,125 F 8,700 × AP = $870,000 – $76,125 AP = $91.25 ________________________________________ Question 3: Score
Next, each item commitment quantity was calculated using its contribution margin and its total contribution in dollar to the revenue of the company. For e.g. if an item had a margin of $15 if sold, and $5 loss if not sold, the commitment value would be 0.75. Hence the optimal stock to keep would be three quarters of the probability of demand. If for instance, the corresponding error for 0.75 is 1.3, the optimal stock to keep for that item would be 1.3 * frozen forecast.
Payment is 15000, 7 is N, FV is 0, 10 is the I/Y and compute for the PV b) The PVC. This is given as $75,000 c) The NPV. NPV = $73,026.28 - $75,000 = ($1,973.72) Input -75,000 in the cfo and 15000 for 7 years. Then press npv, 10 for interest, go down and compute d) The IRR (Hint: Use interpolation, IRR is between 8 percent and 10 percent). 9.22 Payback=C/ ATB (cost over after tax
Initial value of Pacific ridge investment (December 1995) is: 666,667 * $1.50 + 133,333 * $0.3 = $1,040,000.4 (initial investment, exhibit 7). If we now value the rest of the company’s stock before venture capitalist investment at $1.50, we have: $1.50 * (800,000 + 4,796,000) =
APV vs. WACC Problem Given the following information, answer questions 1 and 2 below. Company and market data: Rf = 4% Rm = 10% βu = 0.9 D/V (target) = 40% RD = 4% Tc = 30% Project CFs: I0 = 1000, CF1 = 300, CF2 = 400, CF3 = 500 1) Calculate the project’s value using WACC 2) Calculate the project’s value using APV -Oops, we can’t until we know the financing (debt) pattern over time. (a) OK, assume the project is financed with 60% debt which is paid off in three equal, annual installments. (b) Now assume instead of (a) that the debt is rebalanced to be consistent with the firm’s target debt ratio (i.e. D/V = 40%).