Here are the findings for question 2: 1. The CLM (Combined Leverage Multiplier) for Kroger that year was 3.720 (= 4.477 financial structure leverage X 0.831 common earnings leverage). In contrast to a CLM of 2.745 for Safeway. 2. Kroger has greater ROA performance at 6.4% in comparison to 6.0%.
Some of you went into more detail here. To the extent those details overlapped with (b), I counted them as part of the (b) answer According to Exhibit 7a, Samsung’s costs per (256MBit equivalent) unit are lower by $1.39, or 24.4%, than those of its average competitor. They are lower by 10% than SMIC’s costs, which is Samsung’s lowest-cost competitor. An indirect way to tell that Samsung has a benefit advantage is by its ability to charge higher prices than its competitors. According to Exhibit 7a, Samsung’s prices per chip are on average higher by $0.72 than those of its competitors, or by 14.5%.
Imports are greater than exports, and so the net effect of trade is a deficit and its net export it –3% The government spending is 19% because state and local governments can't spend more during a recession. They are usually mandated to balance their budgets, and so must cut spending when tax revenues
For federal taxation purposes, the proceeds received by the investor company in a proportionate redemption are taxed as dividends by applying the effective intercorporate dividend tax rate. In 1983, that tax rate was approximately 6.9 percent. Berkshire also chose to treat the proceeds from the redemption of the GEICO stock as dividend income in its 1983 financial statements. Berkshire’s audit firm, Marwick, Mitchell & Company, approved that accounting treatment. In 1984, another company in which Berkshire had a significant equity
So we can interpret that in the year 2013, the risk of the firm is getting lower as the ratio goes down. As the definition says that higher the ratio, greater the ability of the firm to pay its bills. This tells that Coca-Cola is not really improving their liquidity and efficiency, because their current ratio dropped from the previous year. As of September 29, 2013, and September 30, 2012, the Company had a weighted average interest rate of 6.1%, 5.9% and 6.1%, respectively, for its outstanding debt and capital lease obligations. The Company’s overall weighted average interest rate on its debt and capital lease obligations was 5.8% for YTD 2013 compared to 6.1% for YTD 2012.
The suppliers in India allot a much higher percentage of their expenses to fixed costs as opposed to the U.S. and U.K. suppliers. This is much more noticeable in the areas of technology, where Indian companies incur costs that range between 28% and 31% of their total costs, while the U.S. and U.K. suppliers experience costs between 8% and 15% of their total costs. The percentage of cost for the Indian suppliers are generally higher for facility costs, sales & marketing costs as well as administrative costs, though to a much lesser degree than the difference in technology. However, while the U.S. and the U.K. enjoy an advantage when it comes to the percentage of costs that are for fixed costs, the Indian suppliers tend to have an advantage in the percentage of their costs that makes up the variable costs. The great majority of this cost advantage comes from the difference in labor costs where Indian companies have quite a large advantage.
That is there is a large disparity of age between the older sales rep and the younger sales reps. There are many issues with seniority, especially when it comes to sales, a very results driven job. Also the older sales reps are more focused on building relationships, while the newer ones are more educated and driven. This has created a large gap between the younger and veteran reps. It has created a culture where it is difficult for both parties to work.
Both these should be in percentage. The costs taken into consideration in the formula should be the costs after the tax. We already calculated this cost at the second question, but only for the long term debt. So now we will calculate it for the short term interest bearing debt, $76,132,000, the formula used in the calculation is the same as in question 2. The result is this one: 0.082 (1-0.3879) = 0.05019.
Low income tax payments are why one-third of U.S. companies use LIFO (Harrison, Horgren, & Thomas, 2010). LIFO also gives the company the most realistic net income figure because the recent costs of inventory are expensed. FIFO would use the oldest costs of inventory which is not a realistic measure of the inventory expense. The ending inventory under LIFO would be lower, due to the highest prices being expensed. If the company wants to lower its income at the end of the accounting period, they would buy more inventory and the cost of that inventory could be used for cost of goods sold.
Boeing executives wish to come up with a more flexible and fuel efficient jetliner “7E7” to regain market share. First, we choose weighted cost of capital, WACC, to be the proper discount rate for free cash flow, because WACC is the required rate of return of a company as a whole. According to the model, we have to find return on debts and return on equity. Given the estimated period of 30 years, we choose the YTM of a bond will mature on 2038/2/15 as the cost of debts, the number of which is 6.153%. We use CAPM to estimate the cost of equity.