The goal of this analysis is to use statistical methodology to predict sales at 2 potential locations at a much more accurate level and determine which location is likely to have higher sales. Data The data used in this analysis comes from census information in the stores’ trading zones as well as data on individual stores. Variables from the most recent census were compiled for the trading zone of each of the 250 stores. For each store there is data gathered on demographics and economics of the trading zones, as well as size, composition and sales of the store. There are a total of 28 quantitative demographic variables each measured as a percentage of the population within the trading zone, 2 quantitative store variables including sales and square feet, and 7 quantitative categorical variables for competitive type.
The verbal agreement and the email might be considered a contract in the court of law. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The fact that both parties reached a verbal agreement prior might help Chou. BTT inquired about distributing Strat and paid Chou $25,000 in exchange for exclusive negotiation rights for a 90-day period.
HILL COUNTRY SNACK FOODS CO. March 30 2013 This report analyses and estimates the effects of a recommended leveraged of 20%, 40%, and 60% debt-to-capital recapitalization for Hill Country Snack Foods Co. Fundamental conclusions include: • Relevant theories infer that by incorporating debt to a firm’s capital structure, significant tax savings can be made, but financial distress and signaling factors need to be considered. • Hill Country’s Weighted Average Cost in Capital is estimated to decrease after recapitalization. • It revealed that 20% debt-to-capital result is the optimal (lowest) WACC and maximizes the company’s value. • Significant debt issue is a concern as it is risky and in conflict with the company’s culture and managerial of low-risk attitude.
Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
The R^2=86.52%, while R=0.80. From the Analysis of Variance, we saw the P Value= 0.000 the F Value= 85.6452. When we tested with the significance level of 5% we concluded the P value was less than, therefore we concluded to reject the null hypothesis for this level. We also performed the 95% Confidence level to be ($0.009and $0.015) for B1. In addition, we can estimated that a customer with a $4000 credit balance to have an income in between (41.7665, 46.6130) in $1000 using the 95% CI confidence levels to calculate the income level.
Your initial post should be 200-250 words and your example should be properly cited according to APA as outlined in the Ashford Writing Center. Job Order Costing vs. Process Costing. Explain the similarities and differences between job order costing and process costing. In your explanation, provide examples of when job order costing and process costing would be most appropriate.
Make a copy of the Pledges worksheet, and then rename the copied worksheet as Q7. In the Q7 worksheet: a) Filter the data to display individual donors whose amount owed is greater than zero. b) Sort the filtered data by pledge date, with the oldest date displayed first. 8. Make a copy of the Pledges worksheet, and then rename the copied worksheet as Q8.
What are some potential issues in using varying techniques for cost of capital for different divisions? If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? Explain your reasoning. What are two techniques that you could use to develop a rough estimate for each division’s cost of capital? Your initial response should be 200 to 250
The facts weigh in favor of Chou because BTT paid $25,000 to Chou for the 90 days rights showing seriousness to pursuing the distribution rights to Strat. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? According to the UETA, an offer and subsequent acceptance constitutes a legally binding contract. It is possible for an e-mail to be used as evidence of terms and conditions of the offer and acceptance.
The result is this one: 0.082 (1-0.3879) = 0.05019. The other after tax costs are 0.050498 and 0.05738, respectively for $133 million bond and $100million bond. From the information taken above we conclude that the Cost of total debt = (0.05738 + 0.050498 + 0.05019) / 3 = 0.0526 (5.26%) Cost of the equity, we calculated on question nr 3, and it is 17.6525 %. To sum up, the cost of the capital is nothing more than the sum of the cost of equity and cost of debt, the calculation is this: Cost of capital = 17.6525 % + 5.26% = 22.91 % QUESTION 5: If Wonder Bar uses book value rather than market value to determine its capital structure, what is the impact of the cost of capital on its budgeting decisions? Market value is simply the amount of money that people are willing to pay for a stock.