Part (b) Calculate the seasonal forecast of sales for February of Year 3. Part (c) Which forecast do you think is most accurate and why? 11. Question : (TCO 6) Davis Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project A Project B Initial Investment $800,000 $650,000 Annual Net Income $50,000 45,000 Annual Cash Inflow $220,000 $200,000 Salvage Value $0 $0 Estimated Useful Life 5 years 4 years The company requires a 10% rate of return on all new investments.
Assume that three years ago, you purchased a corporate bond that pays 9.5 percent. The purchase price was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 8 percent. a. What is the annual dollar amount of interest that you will receive from your bond investment?
If a project with normal cash flows has an IRR greater than the WACC, the project must also have a positive NPV. 3. The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%.
C) a series of yearly payments. D) a series of consecutive payments of equal amounts. Ans: D 4. You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%.
If the YTM on these bonds is 6 percent, what is the current bond price? | | $1,160.76 | | $1,248.85 | | $1,302.62 | | $742.83 | | $1,258.85 | Ashes Divide Corporation has bonds on the market with 19 years to maturity, a YTM of 7.8 percent, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon
The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.) ** $77,468 | $80,022 | $82,575 | $160,043 | 4. On January 1, 2010, Wilson Corporation granted Emelia Walker, its president, a compensatory stock option plan to purchase 8,000 shares of Wilson's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option, which is exercisable on January 1, 2014, after four years of service. How much compensation expense should Wilson recognize on December 31, 2010?
In its Year 2 income statement, what amount should Shin report as total income tax expense? 3. (TCO B) Justification for the method of determining periodic deferred tax expense is based on the concept of: 4. (TCO B) In Year 2, Ajax, Inc. reported taxable income of $400,000 and pretax financial statement income of $300,000. The difference resulted from $60,000 of nondeductible premiums on Ajax's officers' life insurance and $40,000 of rental income received in advance.
Prepare a partial income statement for Stacy beginning with income before income taxes. The corporation had 4,954,000 shares of common stock outstanding during 2014. Brief Exercise 4-7 Your answer is correct. Vandross Company has recorded bad debt expense in the past at a rate of 1.5% of net sales. In 2014, Vandross decides to increase its estimate to 2%.
In its first quarter interim income statement, what amount of income tax expense should Tech report? a. $0 b. $30,000 c. $50,000 d. $60,000 2. Bailey Company, a calendar-year corporation, has the following income before income tax provision and estimated effective annual income tax rates for the first three quarters of 2009: Quarter 1st 2nd 3rd income before tax $60,000 $70,000 $40,000 estimated effective annual tax rate at end of quarter 20% 40% 45% Bailey’s income tax provision in its interim statement for the third quarter should be a. b. c. d. $18,000 24,500 25,500 76,500 3.
$9,213. c. $9,234. d. $9,324. 99. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?