The Pizza Company is considering a new three-year expansion project. The key data are shown below:
The company hired a consulting firm to help evaluate the project and paid the consulting fee of $60,000. The company owns the space. If company did not invest in the project, it can receive after-tax rental fee for $300,000 per year for 3 years. However, if the
company invested in the project, it will use the space for the project.
 The fixed cost to produce pizza is required at $150,000 per year.
 It is estimated that 50,000 units will be sold in the first year and that 40,000 units and 30,000 units will be sold in the second and third years respectively.
 Each pizza is expected to sell for $25 and the production cost will be $15 per unit.
 The sales price and variable cost should increase with inflation. Expected inflation rate per year is 5%.
 The project requires an initial investment in working capital of $500,000, which will be required in each year at 10% of revenue in the following year.
 The purchase of the machinery at the start of the project is $1,000,000. The shipping and installation cost are $200,000. The machinery will be depreciated straight-line to zero. It is estimated that the machinery can be sold at the end of the project for $250,000.
 To finance the project, the company would need to take a one-million dollar loan at 8% interest rate p.a. from HSBC over the life of the project. Annual interest expense is $80,000.
 The corporate tax rate is 34%.
 The Pizza Company is evaluating its cost of capital under alternative financing arrangements. In consultation with the consulting firm, the Pizza Company expects to be able to issue new Debt at Par with a coupon rate of 8% (coupons paid annually) and to issue new preferred stock with a $4 per share dividend at $32 a share. The common stock of the Pizza Company is currently selling for $22 a share while its book value is $6. The Pizza Company expects to pay a total
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate the NPV of the project using the cost of capital calculated in part (a).
Should the project be accepted?

Answer:

dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock

a. What is the cost of capital (WACC) of the Pizza Company?

b. Calculate

Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019:

April May June
Credit sales $416,000 $365,000 $453,000
Credit purchases 193,000 181,000 214,000
Cash disbursements
Wages, taxes, and expenses 81,100 76,600 105,300
Interest 10,800 10,800 10,800
Equipment purchases 40,000 12,500 161,000

The company predicts that 5 percent of its credit sales will never be collected, 25 percent of its sales will be collected in the month of the sale, and the remaining 70 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $343,000. Using this information, write down the cash budget.

Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. Round your labor rate to nearest cent.
$
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $159,600 and property tax of $56,000 for 7,600 hours of production. The department actually completed 9,500 hours of production.
Determine the budget for the department, assuming that it uses flexible budgeting.
$

Makers Corp. had additions to retained earnings for the year just ended of $205,000. The firm paid out $185,000 in cash dividends, and it has ending total equity of $4.90 million. The company currently has 100,000 shares of common stock outstanding.
1. What are earnings per share?2. What are dividends per share? 3. What is the book value per share? 4. If the stock currently sells for $68 per share, what is the market-to-book ratio?5. What is the price-earnings ratio?6. If the company had sales of $3.41 million, what is the price-sales ratio?

The founder of Starbucks, Howard Schultz, decided to provide healthcare for all employees who work over 20 hours per week. This is an example of Starbucks’ employee _______ plan

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

a. Cash balance according to the company's records at August 31, $19,140.
b. Cash balance according to the bank statement at August 31, $19,950.
c. Checks outstanding, $3,890. Deposit in transit not recorded by bank, $3,120.
d. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
e. Bank debit memo for service charges, $50.

Required:
Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.

WHAT IS THE SUPPLY CHAIN FRAMEWORK'S IN OKADA? WHAT IS THE MODEL ?

Widgets, Inc., based in the United States, makes small parts for the auto industry. Over the past couple of years, Widgets has laid off many workers due to auto industry outsourcing. The federal government has imposed tariffs to discourage outsourcing. This is called

please someone should help me.....how do we solve the square root of x +8 plus the square root of x+1 equals 7.....note the question is a surd question​

Of the following statements, which best describes a legitimate disadvantage of cost-based pricing:
a. Marginal costs and revenues are difficult to measure
b. Determining the amount a customer is will to pay may require estimation
c. Most cost drivers are not readily available
d. Customers may not be willing to pay the price determined by the procedure

Kỳ hạn ghép lãi 3 tháng, lãi xuất công bố 12%/năm. Hỏi lãi xuất bao nhiêu %/kỳ 3 tháng?

A five-year note payable would appear on the balance sheet as a(n) a.disclosure in the notes only. b.long-term liability for the entire amount owed. c.current liability for any portion due within one year. d.intangible asset.

What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period

You just bought a rent house in Fayetteville, AR, for $100,000, with $20,000 down and the balance in the form of a 15-year amortization mortgage at a fixed rate of 5.0% and monthly payments. Your principal, interest, property tax, and insurance, plus all costs of maintaining the property, are covered by your rent. a) How much are your monthly mortgage payments? b) The University grows, and prices appreciate at the rate of 6% per year, what will the value of the house be in 6 years? What will the outstanding principal of the debt be (assume no extra payments)? What will the value of the equity be? c) Using CAGR, what is your rate of return on your equity? Why is it so high compared to housing market price appreciation? d) At this CAGR rate, how long will it take to double your money? e) What shape of yield curve is often (but not always) followed by an economic downturn and stock market correction/crash?

mention any four components of the marketing communication policy​

In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. What is the standard deviation of demand during lead time

Alexandria's Dance Studio is currently an all-equity firm with earnings before interest and taxes of $338,000 and a cost of equity of 14.2%. The tax rate is 34%. Alexandria is considering adding $400,000 of debt with a coupon rate of 7% to her capital structure. The debt will be sold at par value. What is the levered value of the equity?

You want to buy a house and will need to borrow $295,000. The interest rate on your loan is 6.37 percent compounded monthly and the loan is for 30 years. What are your monthly mortgage payments?

You have decided to invest in two bonds. Bond X is an n-year bonod with semiannual coupons, while bond Y is zero-coupon bond, which is re- deemable in 2 years. The desired yield rate is the same for both bonds. You also have the following information:

Bond X:
Par value is 1000.
The ratio of the semi-annual bond rate to the desired semi-annual yield rate, that is is r/i 1.03125.
b. The present value of the redemption amount is 381.50.

Bond Y:
Redemption value is the same as that of bond X.
Price to yield is 647.80.

What is the price of bond X?

Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) % Semiannually 10.7 % Monthly 11.6 Weekly 9.3 Infinite 13.0

To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. You notice that there is a large amount in the Opening Balance Equity account.
Which 3 reasons could be causing this balance?
A. The client added transactions in the Banking Center without assigning an account to them
B. Opening balance for an inventory item was entered during the setup process
C. The client entered an Opening Balance when creating an Other Current Asset account
D. Opening balances were included when importing customers using the Import data tool
E. The client forced a bank reconciliation when the difference was not zero

An example of a good that is excludable is: _________
a) an outdoor sculpture visible from the street.
b) a television set.
c) broadcast television.
d) an aerial fireworks display.

A student organization is developing promotions for its clothing fundraiser. Email blasts across campus will be part of the campaign. The following are subject line features that might explain whether promotional emails are opened: the number of words in the subject line using the recipient’s name in the subject line including humor in the subject line posing a question in the subject line including the name of a well-known community member What type of model could the student group utilize to analyze which features are important for explaining whether someone opens a promotional email

Materials Variances Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $16.25. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,800 ounces of materials. The cost of the materials during July was $17.00 per ounce, and there were no beginning or ending inventories. Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses.

The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.
Project Expense Management Estimated Profit
($1,000s) Scientists required (1,000,000s)
1 50 6 0.30
2 105 8 0.85
3 56 9 0.20
4 45 3 0.15
5 90 7 0.50
6 80 5 0.45
7 78 8 0.55
8 60 5 0.40
Formulate the integer programming model for this problem and solve it using the computer.

Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per share. In the current year, Julio received a payment of $135,000 from Gray Corporation in exchange for 4,500 of his shares in Gray. Gray has E & P of $1,000,000. What income tax liabil-ity would Julio incur on the $150,000 payment in each of the following situations? Assume that Julio has no capital losses.

a. The stock redemption qualifies for sale or exchange treatment.
b. The stock redemption does not qualify for sale or exchange treatment.
c. How would your answer to parts (a) and (b) of Problem 49 differ if Julio were a corporate shareholder rather than an individual shareholder and the stock ownership in Gray Corporation represented a 25% interest?

On May 1, the Chris Company borrowed $30,000 from the Third Street Bank on a 1-year, 6% note. If the company keeps its records on a calendar year, an adjustment is needed on December 31 to increase:_______.
a. Interest Payable, $900.
b. Interest Expense, $1,800.
c. Interest Payable, $1,200.
d. Interest Expense, $600.

Joan Martin expects interest rates to decline over the next few months.To achieve her long-term financial goals,she will trade off liquidity for a higher return by using a:_________.
A) regular savings account.
B) interest-bearing checking account.
C) five-year certificate of deposit.
D) money market account.
E) money market fund.

Covered interest arbitrage involves both Group of answer choices the purchase of a domestic asset and a spot contract in the market for foreign exchange. the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange. the purchase of a foreign asset and a forward contract in the market for foreign exchange. the sale of domestic stocks and the purchase of foreign bonds.

Excel technology is trying to increase its cash flow cycle. Sales in 2019 was $3,250,000 ( all on credit) and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year. and its DSO was 41days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets $535,000, its payable deferral period is 45 days. Calculate Excel technology's cash conversion cycle