The Lopez-Portillo Company has $11.3 million in assets, 90 percent financed by debt, and 10 percent financed by common stock. The interest rate on the debt is 10 percent and the par value of the stock is $10 per share. President Lopez-Portillo is considering two financing plans for an expansion to $21.5 million in assets. Under Plan A, the debt-to-total-assets ratio will be maintained, but new debt will cost a whopping 10 percent! Under Plan B, only new common stock at $10 per share will be issued. The tax rate is 30 percent.
a. If EBIT is 11 percent on total assets, compute earnings per share (EPS) before the expansion and under the two alternatives
Earnings Per Share
Current $
Plan A $
Plan B $
b. What is the degree of financial leverage under each of the three plans? (Round your answers to 2 decimal places.)
Degree Of
Financial Leverage
Current
Plan A
Plan B
c. If stock could be sold at $20 per share due to increased expectations for the firm’s sales and earnings, what impact would this have on earnings per share for the two expansion alternatives? Compute earnings per share for each. (Round your answers to 2 decimal places.)
Earnings Per Share
Plan A $
Plan B $
Answers
Answer:
Explanation:
Current Plan A Plan B
EBIT 1.243 2.365 2.365
Interest 1.017 1.935 1.017
EBT 0.226 0.43 1.348
Tax (30%) 0.0678 0.129 0.4044
Net Income 0.1582 0.301 0.9436
EPS $ 1.40 $ 1.40 $ 0.83
No. of shares 0.113 0.215 1.133
DFL 5.50 5.50 1.75
In the current plan, Debt = 90% x 11.3 = 10.17m
Interest expense = 10% x 10.17 = 1.017m
No. of shares = Equity / Par value = 11.3 x 10% / 10 = 0.113m
EBIT = 11% x 11.3 = 1.243m
EPS = Net Income / No. of shares = 0.1582m / 0.113m = $1.40
In Plan A, Debt = 90% x 21.5 = 19.35m
Interest expense = 10% x 19.35 = 1.935m
No. of shares = Equity / Par value = 21.5 x 10% / 10 = 0.215m
EBIT = 11% x 21.5 = 2.365m
EPS = Net Income / No. of shares = 0.301m / 0.215m = $1.40
In Plan B, Debt = 90% x 11.3 = 10.17m
Interest expense = 10% x 10.17 = 1.017m
No. of shares = Equity / Par value = (21.5 - 10.17) / 10 = 1.133m
EBIT = 11% x 21.5 = 2.365m
EPS = Net Income / No. of shares = 0.9436m / 1.133m = $0.83
DFL = EBIT / EBT
Related Questions
The table below details the composition of an economy’s GDP by spending category.
Category Expenditures (billions of dollars)
Fixed business investment $3,650.00
Durable goods $2,150.00
Exports $650.00
Federal government purchases $1,400.00
New home construction $1,150.00
Imports $780.00
Change in inventories $-250.00
Nondurable goods $4,850.00
Services $8,900.00
State and local government purchases $2,550.00
Use the information in the table to calculate the following:
a) Consumption: $
15900
billion
b) Investment: $
billion
c) Government: $
billion
d) Net exports: $
billion
e) GDP: $
billion
Answers
its e) GDP: $
billion. hope this helps
Use the information in the table to calculate the following as a) Consumption: $ 15900 billion.
a) Consumption: Consumption can be calculated by adding up the spending on durable goods, nondurable goods and services.
Consumption = Durable goods + Nondurable goods + Services
Consumption = $2,150.00 + $4,850.00 + $8,900.00
Consumption = $15,900.00 billion
b) Investment: Investment includes fixed business investment, new home construction and the change in inventories.
Investment = Fixed business investment + New home construction + Change in inventories
Investment = $3,650.00 + $1,150.00 - $250.00
Investment = $4,550.00 billion
c) Government: Government spending includes federal government purchases and state and local government purchases.
Government = Federal government purchases + State and local government purchases
Government = $1,400.00 + $2,550.00
Government = $3,950.00 billion
d) Net exports: Net exports can be calculated by subtracting imports from exports.
Net Exports = Exports - Imports
Net Exports = $650.00 - $780.00
Net Exports = -$130.00 billion (negative value indicates a trade deficit)
e) GDP: GDP is the sum of all spending categories.
GDP = Consumption + Investment + Government + Net Exports
GDP = $15,900.00 + $4,550.00 + $3,950.00 - $130.00
GDP = $24,270.00 billion
To know more about Consumption here,
https://brainly.com/question/31868349
#SPJ2
How might the use of credit for a large purchase affect your budget?
Answers
Using credit to make a significant purchase can have immediate and long-term consequences for your finances. Before making a decision, it is critical to carefully consider your options and the potential consequences.
How the use of Credit can affect Budget?Using credit for a abundant purchase can have a meaningful affect your budget in various habits:
Increased monthly fees: If you select to finance your purchase utilizing a charge card or loan, you will likely should create weekly fees that include two together the principal amount and interest. This can increase your weekly expenses and humble the amount of services you have handy for added expenses.Accumulation of bill: If you cannot afford to create the weekly fees, you grant permission finish up increasing deficit. This can bring about interest charges and fees that can fast calculate and manage even challenging to pay the obligation.Lower credit score: If you have excessive deficit or miss fees, your credit score can be in another way damaged. This can manage harder for you to get credit from now on, or influence bigger interest rates and payments.Opportunity cost: By utilizing credit to make a big purchase, you can be yield different convenience. For example, if you are pay off a big loan, you concede possibility not within financial means save as much for retreat or different main aims.Learn more about credit purchase here: https://brainly.com/question/30245409
#SPJ1
Assume that the pricing manager discovered that more seats went unsold for tuesday night games than for any other night of the week, indicating a lower demand for soccer tickets on tuesdays. The la galaxy could lower the ticket price for future tuesday night games to avoid:.
Answers
The la galaxy could lower the ticket price for future tuesday night games to avoid idle production capacity.
What is idle production capacity?
Idle production capacity occurs when the supply of an item exceeds its demand. As a result, there would be a surplus of supply and some of the products would not be utilised by consumers.
To reduce idle production capacity, prices can be reduced. This is because price is inversely related to quantiy demanded.
To learn more about surplus, please check: https://brainly.com/question/12110173
In order to make an informed career decision, a high school student will want to:
A.choose a career that offers the amount of money desired
B. develop personal goals, complete an interest inventory, and research careers
C. choose a training program that will guarantee emptByment after the course work is completed
D. commit to a profession that requires a college degree
Answers
Answer:
A.choose a career that offers the amount of money desired
your bank statement shows a balance of $695. your checkbook register shows a balance of $562. you earned interest of $3 and had a service charge of $5. there are no outstanding deposits. what is the amount of outstanding checks
Answers
The amount of outstanding checks assuming there are no deposits in transit is $133.
Outstanding checksUsing this formula
Outstanding checks=Bank statement balance-Checkbook register balance
Where:
Bank statement balance=$695
Checkbook register balance=$562
Let plug in the formula
Outstanding checks=$695-$562
Outstanding checks=$133
Inconclusion The amount of outstanding checks assuming there are no deposits in transit is $133.
Learn more about outstanding checks here:https://brainly.com/question/1442615
Kendall and her team are preparing a list of risks and entering them in a risk assessment chart. How do they calculate the weighted factor?
Answers
They can calculate the weighted factor by using Task Role.
What is Task Role?
Task role exists a typical role of group members to do a particular job. To describe tasks as a collection of competencies and accomplishments that exist required for you to perform a particular task. You use these task descriptions on the Role setup page to determine roles. Responsibilities direct to the assignments and duties of their particular role or job description. People in task roles maintain the group concentrated on reaching the destination by completing specific assignments. Procedural.
Team members in procedural roles control the information and communication transmitted in the group. The main role of a team leader exists to furnish the team with direction and support. They’re also accountable for delegating tasks. To effectively lead a team, a team leader must outline not only the team’s primary goal but the tasks each employee stands responsible for.
Learn more about Task Role, refer:
https://brainly.com/question/3775178
#SPJ9
U.S. Treasury issues three types of Treasury securities: Treasury bills (T-bills), Treasury notes (T-notes), and Treasury bonds (T-bonds). The time to maturity (TTM) of T-bills is 12-month or less than 12-month. The TTM of T-notes is between 1 year and 10 years. The TTM of T-bonds is longer than 10 years. Which one(s) (T-bills, T-notes, or T-bonds) belong to the money market instrument(s)? Which one(s) belong to the capital market instrument(s)? If you would like to buy Treasury securities, which one(s) would you purchase? Explain why?
Answers
Answer:
Treasury bills (T-bills) are short-term money market instruments issued by the government to raise short-term funds. They are issued for terms of less than a year and are sold at a discount from their face value. T-bills have maturities of 4, 8, 13, 26, and 52 weeks. Therefore, T-bills belong to the money market instrument(s).
Treasury notes (T-notes) are issued with maturities from two to 10 years and pay interest semi-annually. Therefore, T-notes belong to the capital market instrument(s).
Treasury bonds (T-bonds) are long-term investments that have maturities of 10 to 30 years and also pay interest semi-annually. Therefore, T-bonds belong to the capital market instrument(s).
If you would like to buy Treasury securities, it depends on your investment goals. If you want a short-term investment with low risk and low return, you can consider buying T-bills. If you want a medium-term investment with moderate risk and moderate return, you can consider buying T-notes. If you want a long-term investment with high risk and high return, you can consider buying T-bonds.
Explanation:
I hope this helps
Which of the following statements is normative? Group of answer choices Congress gives certain business corporations tax breaks. Tax breaks can lead to additional production. Tax breaks can change corporate behavior. Congress gives too many tax breaks to corporations.
Answers
Answer: Congress gives too many tax breaks to corporations.
Explanation:
Normative statements are said to be statement of opinion and not fact.
Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.
The other options are statements of fact.
does anyone know this??? compare using necessary example,
The types of capital
Answers
Answer:
The four major types of capital include working capital, debt, equity, and trading capital. Trading capital is used by brokerages and other financial institutions.
Would it be wise for a young company that is growing quickly but still hasn’t achieved profitability to attempt to issue bonds as a way to expand its working capital?
Answers
Answer:
It would not be wise for the young company to attempt to issue a bond as a way of expanding its capital. This is because, the company still has to be able to find a balance between its expenditure and income before it can think towards expansion. If this is not met, they might run into series of financial debts while trying to expand.
Explanation:
you come across a 20 dollar bill laying on the ground, in a store. What would you do?
Answers
Answer:
uh i will take it and try to not feel guilty then later forget it and since i am so forgetful i will probably lose it
Explanation:
Answer please? Images provided
Answers
Answer:
An increase in demand
Explanation:
The graph illustrates a shift in demand curves to the right. As a result, the equilibrium price and quantity have increased.
A demand curve will shift to the right due to an increase in demand caused by non-price factors. An increase in demand means that the quantity demanded increases at all the price levels. Factors that may cause an increase in demand include a change in consumer preferences and tastes, an increase in the price of substitute goods, or a rise in demand for a complement product.
"Easton Company uses 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 130 $11 5/5 Purchase 280 $13 5/15 Purchase 140 $15 5/25 Purchase 160 $17 Sales were 430 units at $25. Using the FIFO method, determine the dollar value of Ending Inventory for the month of May.”
Answers
Answer:
$4,520
Explanation:
The computation of the dollar value of the ending inventory using the FIFO method is as follows:
But before that the ending inventory is
= Beginning inventory + purchased units + purchased units + purchased units - sales units
= 130 units + 280 units + 140 units + 160 units - 430 units
= 280 units
Now the ending inventory is
= 160 units × $17 + (280 units - 160 units) × $15
= $2,720 + $1,800
= $4,520
The brand changes form part of a strategic plan the group conceived in September last year called Ekuseni (the Zulu word for “dawn”)”
“Pick n Pay and its new CEO are taking the fight to competitors in a strategy..”
“Pick n Pay yesterday launched a new strategic plan…”
Evaluate the proposed strategy that Pick n Pay is planning to implement, including in your evaluation, the potential risks attached to the proposed new strategy
Answers
Pick n Pay's proposed strategy, known as Ekuseni, aims to implement changes in their brand and take the fight to competitors. The strategy, conceived in September last year, focuses on strategic planning and was launched recently. While the strategy holds potential for success, there are risks associated with its implementation.
1. Pick n Pay's proposed strategy, called Ekuseni, includes changes to their brand and a competitive approach to rivals. This strategic plan was conceived in September last year, with the term Ekuseni referring to "dawn" in Zulu.
2. The strategy aims to revamp the brand image and position Pick n Pay as a strong competitor in the market. By taking the fight to competitors, the company intends to gain a competitive edge and attract more customers.
3. The launch of the new strategic plan indicates that Pick n Pay is committed to implementing this strategy and achieving its goals. It demonstrates the company's intention to adapt and stay relevant in the evolving market.
4. However, like any strategic plan, there are potential risks associated with its implementation. These risks include customer resistance to changes in the brand, increased competition from rivals, and potential financial strains due to the cost of rebranding and marketing efforts.
5. Customer resistance is a common risk when brands undergo significant changes. If the proposed strategy doesn't resonate with Pick n Pay's target market, it could lead to a decline in customer loyalty and affect sales.
6. Additionally, taking the fight to competitors may trigger retaliatory actions from rival companies. This could result in intensified competition, price wars, and potential market share loss for Pick n Pay.
7. Finally, implementing a new strategic plan involves financial investments. The cost of rebranding, marketing campaigns, and operational changes may strain the company's resources, potentially impacting its financial stability.
In conclusion, while Pick n Pay's proposed strategy holds promise for the company's growth and competitiveness, there are risks involved. Proper planning, market research, and effective execution will be crucial to mitigating these risks and ensuring the success of the strategy.
For more such questions on strategy, click on:
https://brainly.com/question/28561700
#SPJ8
PLEASE HURRY 90 POINTS AND BRAINLIEST TO WHOEVER ANSWERS
Trade School vs. College - How to Decide?
The choice to go to college or choose a trade school is a huge decision you may need to make in the near future. There are a lot of factors to consider when making this choice, so it is a good idea to start reading about the advantages and disadvantages of college and trade schools. Each path can lead to success depending on what you want to do with your life.
After reading the article, make your own list of pros and cons for both trade school and college. Highlight the most important details that will help you make your decision.
Next, develop a basic career and education plan. Your plan should briefly outline the following:
Any long and short-term goals for your education and career future
What high school and college programs might help you reach your goals
This plan can be created in any word processing program.
Once you have completed your list of pros and cons and developed your career and educational plan, answer the following questions:
The article states, “In the past, there may have been some stigma about trade schools not being a viable option to pursue well-paying, long-term careers. However, times have changed! Now more than ever students are looking for alternative education options that allow them to complete school on a faster timeframe with less financial investment.” A stigma is defined as a mark of disgrace associated with a situation or person. What does the author mean by saying that in the past there may have been some stigma about trade schools? Why do you think this stigma existed?
Why do you think this article was written? Does it seem that the author favors trade school and college as equally enriching experiences? Why?
How did the author organize the information? Did the structure of the article help you see the clear pros and cons of trade schools and colleges? Why?
What is the author’s point of view? Analyze and discuss how they distinguish their point of view from others.
What are two (or more) central ideas in this text? How are these ideas developed over the course of the article?
If you had to choose a path right now—college or trade school—which would you choose? Include details from the article that helped sway your decision.
How College Loans Exploit Students for Profit
Explain the issue Samuel discusses that has 40 million Americans in debt.
Samuel mentions three truths that you can’t ignore—briefly explain at least one of the following truths:
What is Income-Based Tuition? Discuss the three advantages to Income-Based Tuition.
4 Pillars of College Success in Science
Why did Hrabowski join the Children’s Crusade in Birmingham? What was the most important lesson that he learned?
Hrabowski states, “…most people don’t realize that it’s not just minorities who don’t do well in science and engineering.” Please explain this statement and give a brief summary regarding how Hrabowski supports this statement.
Why do students who attend the most prestigious universities in our country begin in pre-med or pre-engineering and engineering but end up changing their majors?
Explain the four things that Hrabowski’s university did to help minority students that are now helping all students?
Answers
The author of the article on trade schools versus college is encouraging students to weigh their options and make a decision based on what they want to do with their lives.
In the past, trade schools had a stigma attached to them as not being viable options for well-paying, long-term careers. However, now more than ever, students are looking for alternative education options that allow them to complete school in a faster timeframe with less financial investment.
The author wrote this article to provide information for students to make an informed decision. The author is not biased towards either college or trade schools but presents both as enriching experiences. The article is structured in a way that organizes the information in a clear and concise way, allowing the reader to see the pros and cons of both trade schools and colleges.
The author's point of view is that students should choose the path that best aligns with their goals and aspirations. They make it clear that college and trade schools can lead to success, depending on what the student wants to do with their life.
Two central ideas in the article are that both college and trade schools can lead to success, and students should choose the path that best aligns with their goals. These ideas are developed over the course of the article by providing pros and cons for both paths and discussing the importance of making a decision based on one's aspirations.
If I had to choose a path right now, I would choose college. This is because I am interested in pursuing a career in medicine, which requires a college degree. The article helped sway my decision by providing information on the advantages of college, such as the wide range of career options and opportunities for networking.
In "How College Loans Exploit Students for Profit," Samuel discusses the issue of student debt, which has left 40 million Americans in debt. One of the truths that Samuel mentions is that the student loan industry is a $100 billion industry that is making profits off of students.
Income-Based Tuition is a tuition payment option where the amount a student pays for tuition is based on their income. The three advantages of Income-Based Tuition are that it reduces the financial burden on students, it encourages students to pursue higher education, and it makes education more accessible to low-income families.
Hrabowski joined the Children's Crusade in Birmingham to protest against racial segregation and discrimination. The most important lesson he learned was the power of unity and how students can make a difference when they work together.
Hrabowski's statement means that there is a misconception that only minorities struggle in science and engineering when in reality, it is a problem that affects everyone. Hrabowski supports this statement by discussing the initiatives that his university has taken to help all students succeed in science and engineering.
Students who attend prestigious universities often begin in pre-med or pre-engineering because of societal pressure or the perceived status of these fields. However, they often end up changing their majors because they realize that their true passions lie elsewhere.
The four things that Hrabowski's University did to help minority students that are now helping all students are creating a supportive and inclusive community, providing mentorship opportunities, offering resources and support services, and promoting the importance of education.
Know more about Trade schools here:
https://brainly.com/question/27803416
#SPJ8
Which type of bonds are written by a municipality with you give me to repay the amount of the bond plus interest on a particular maturity date
A) government
B) preferred
C)mutual
Answers
The Correct Answer: government
Match the jobs with the education requirements.
vocational school and state licensure
on-the-job training
a Ph.D. with licensure or certification, depending on the state in which you live
a bachelor’s degree in early childhood development
answer choices
cosmetologist
clinical psychologist
concierge
childcare director
Answers
The appropriate responses are:
childcare director - a bachelor's degree in early childhood developmentclinical psychologist - a Ph.D. With licensure or certification, depending on the state in which you liveconcierge - on-the-job trainingcosmetologist - vocational school and state licensureWhat are the match for the jobs with the education requirements.?Working in the field of education, a daycare director needs a bachelor's degree in early childhood development to be considered for the role.
A clinical psychologist has advanced training and expertise in mental health. To become a clinical psychologist, one must complete a lengthy academic program and get a doctorate degree.
In conclusion, A hotel concierge is a service staff member whose job it is to fulfill customers' requests. They usually just need to have a high school diploma in order to be considered for the role, with the remainder of the necessary skills and knowledge being learned via on-the-job training.
To work in the beauty business as a cosmetologist, one must first attend an accredited cosmetology school to learn the trade's foundational concepts and practical skills. The state will need a license before they can begin working after they have completed their specialized training.
Read more about education
https://brainly.com/question/1602018
#SPJ1
A survey reveals that, on a small island, 175 people have jobs, 25 people are not working but are looking for jobs, and 90 people are neither working nor looking for work. The unemployment rate on the island is:____.
Answers
Answer:
The answer is = 12.5%
Explanation:
The 175 people that have jobs are in unemployment (employed).
The 25 people that are not working but are looking for jobs are called unemployed.
The 90 people are neither working nor looking for work for work are not counted in the employment.
Therefore, the labor force is employed people + unemployed people.
Labor force is 175 + 25= 200 people.
So, unemployment rate is:
(unemployed people ÷ labor force) x 100
(25÷200) x 100%
=12.5%
2. ¿En qué nueva fase ingreso la Administración de las empresas?
Answers
Answer:
gg
Explanation:
hdsjesjtcgl
What are stocks? Sorry it’s so simple but I was hoping I could get a good answer.
Answers
Hope that answers
How does making a payment by check affect your checking account balance?
A. Your balance decreases immediately
B. Your balance decreases when the check is processed.
C. Your balance decreases the following month.
D. Your balance is not directly affected.
Nvm it's B.
Answers
A payment by check affect your checking account balance as your balance decreases when the check is processed.
Thus, the correct option is B.
What is a bank check?
A check is a written request from a depositor telling the bank to take money out of their account and pay it to a specific person.
To put it another way, a check is a way to instruct the bank to transfer money from your account to another person's or another person's account.
A check is a permission to take money out of a bank account. A check must include the payee's name, the payment amount, and the date in order to accomplish this.
A check is typically negotiable, allowing the payee to designate a new recipient by signing it. Checks that are certified have your signature and are drawn from your own account.
Learn more about bank check, here
https://brainly.com/question/4307591
#SPJ1
2 words that ryme on the same line is called?
Answers
Answer:A couplet usually consists of two successive lines that rhyme and have the same metre. A couplet may be formal (closed) or run-on (open). In a formal (or closed) couplet, each of the two lines is end-stopped, implying that there is a grammatical pause at the end of a line of verse.
Explanation:Hoped this helped u kind sir or ma'am and have an great day! And also may i plz have brainlist?
2 Drag each label to the correct location on the image. Match the situations to the benefits provided by personalized or online services. understanding the process clearly easy registration process faster filing of claim form understanding policy benefits and limitations addressing clarifications Personalized Insurance Service Online Insurance Service All rights resented
Answers
Answer: Here is the correct answer
Explanation:
In a progressive tax structure, the higher a taxpayer's
income, the greater percentage he or she must pay in
taxes. This chart shows a sample progressive income tax
CEPTS for a taxpayer with total taxable income of $100,000.
Income According to the chart, what would be the total
tax on taxable income of $65,000?
Answers
Answer:According to the chart, the total tax on taxable income of $65,000 would be $16,250.
Explanation:
Isabella and Antonio are auto mechanics. Isabella takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Antonio takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.
Answers
Isabella has an absolute advantage in both clutch replacement and brake replacement due to her ability to complete each task in less time.
- Isabella also has a comparative advantage in both clutch replacement and brake replacement, assuming similar skills and pay rates.
How to determine the whether anyone has an absolute advantage at either task and, for each taskTo determine absolute and comparative advantages in this scenario, we need to compare the productivity of Isabella and Antonio in replacing clutches and brakes.
Let's analyze the tasks:
1. Clutch Replacement:
- Isabella takes 6 hours.
- Antonio takes 8 hours.
Based on the time taken, Isabella has an absolute advantage in clutch replacement because she can complete the task in less time than Antonio.
2. Brake Replacement:
- Isabella takes 4 hours.
- Antonio takes 6 hours.
Again, based on the time taken, Isabella has an absolute advantage in brake replacement because she can complete the task in less time than Antonio.
Similar to clutch replacement, if we assume similar skills and pay rates, Isabella would also have a comparative advantage in brake replacement due to her ability to complete the task more quickly.
Comparative advantage is based on a comparison of opportunity costs, and without specific information about the trade-offs involved, we can infer that Isabella's ability to complete both tasks more quickly gives her a comparative advantage in both.
Learn more Comparative advantage at https://brainly.com/question/12291750
#SPJ1
Which of the following include the Market Structure
Answers
Perpetual Inventory Using Weighted Average
Beginning inventory, purchases, and sales for WCS12 are as follows:
340 units at $10
200 units
360 units at $11
400 units
Oct. 1
13
22
29
Inventory
Sale
Purchase
Sale
a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to
two decimal places.
per unit
b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal
places.
$
c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places
Answers
Perpetual Inventory can be calculated as follows:
a. Weighted average unit cost after the October 22 purchase:
Beginning inventory:
340 units at $10 = $3,400
Purchases:
200 units at $10 = $2,000
360 units at $11 = $3,960
Total units: 340 + 200 + 360 = 900 units
Total cost: $3,400 + $2,000 + $3,960 = $9,360
Weighted average unit cost = Total cost / Total units
=$9,360 / 900 units
≈ $10.40 (rounded to two decimal places)
b. Cost of goods sold on October 29:
Units sold: 400 units
Cost of goods sold = Units sold * Weighted average unit cost
= 400 units * $10.40
= $4,160
c. Inventory on October 31:
Remaining units: 100 units (900 units - 400 units)
Weighted average unit cost (from part a): $10.40
Inventory value = Remaining units * Weighted average unit cost
= 100 units * $10.40
= $1,040
Learn more about Perpetual Inventory here:
brainly.com/question/30766404
#SPJ1
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Adam currently has an awareness level of 80% . While an important product for Andrews, Adam’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Adam loses one-third of its awareness each year, what will Adam’s awareness level be next year?
Answers
Answer:
52.88%
Explanation:
The computation of the awareness level for next year is shown below
But before that we need to find out the ending awareness i.e Y which is
= 80% × (1 - 1 ÷ 3)
= 53.33%
Now awareness after the promotion is
= 53.33% + 26%
= 79.33%
Now the ending awareness i.e (Y +1) is
= 79.33% × 2 ÷ 3
= 52.88%
Hence, the awareness level next year is 52.88%
Estate has an ROI of 16% based on revenues of $400,000. the residual income is $14,000 and the investment turnover is 2. what is the hurdle rate? With Explanation
Answers
If Estate has an ROI of 16% based on revenues of $400,000. the residual income is $14,000 and the investment turnover is 2. The hurdle rate is 9%.
How to find hurdle rate?First step is to find the investment turnover using this formula
Investment turnover=Sales/invested capital
Investment turnover = ($14,000 / $400,000) × 2
Investment turnover = 0.035 × 2
Investment turnover =0.07
Second step is to find the hurdle rate using this formula
Hurdle rate = ROI - Investment turnover
Hurdle rate = 0.16 - 0.07
Hurdle rate = 0.09× 100
Hurdle rate = 9%
Therefore the hurdle rate is 9%.
Learn more about hurdle rate here:https://brainly.com/question/29570213?
#SPJ1
3. _________ is a type of form used to obtain important feedback from customers by
asking them to answer checklist.
A. Survey form
B. Bio-data form
C. Interview form
D. Health check form
4. This social benefit from patronizing products and services project how customers
wants to be ________ by others.
A. admired
B. accepted
C. perceived
D. acknowledged
5. Marketing companies exert effort to consider positive feelings provided to customers
in order to create __________ connection with them.
A. Social
B. Emotional
C. Functional
D. Economical
Answers
Answer:
3. Survey form
4. accepted
5. emotional
Explanation: