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1 year ago

Companies that manufacture products with a very product life cycle have as their core competency.

Business

1 answer:

Citrus2011 [14]1 year ago

4 0

Answer:

short, innovation

Explanation:

Manufacturing of short product cycle have the innovation requires for competency compare to those companies that manufacture on long product cycle.

It should be noted that Companies that manufacture products with a very short product life cycle have innovation as their core competency.

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The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a FIF

Alex787 [66]

Answer:

ending work in process = $42,700

Explanation:

all materials added at the beginning of the process:

beginning work in process = 18,000

units started = 160,000

ending work in process = 7,000

equivalent units for materials = 160,000 + 7,000 = 167,000

conversion costs:

beginning work in process = 18,000 x 10%, so 90% added = 16,200

units started and transferred out = 160,000 - 7,000 = 153,000 x 100% = 153,000

ending work in process = 7,000 x 40% = 2,800

equivalent units for conversion costs = 16,200 + 153,000 + 2,800 = 172,000

ending work in process = 7,000 units

100% complete for materials = 7,000 x $3.10 = $21,700

40% complete for conversion costs = 2,800 x $7.50 = $21,000

total ending work in process = $42,700

7 0

1 year ago

1. A firm can lease a truck for 4 years at a cost of $30,000 annually. It can instead buy a truck at a cost of $80,000, with ann

Alexxx [7]

Answer:

The lease option is the better option.

Explanation:

We proceed as follows:

Step 1: Calculation of Lease Option NPV

Year = n Details CF ($) DF = 1/(1.1)^n PV ($)

1 Lease payment (30,000) 0.9091 (27,273)

2 Lease payment (30,000) 0.8264 (24,793)

3 Lease payment (30,000) 0.7513 (22,539)

4 Lease payment (30,000) 0.6830 (20,490)

Lease option NPV = (95,096)

Step 1: Calculation of Lease Option NPV Buy Option NPV

Year = n Details CF (CO) DF = 1/(1.1)^n PV

0 Purchase cost (80,000) 1.0000 (80,000)

1 Maintenance expenses (10,000) 0.9091 (9,091)

2 Maintenance expenses (10,000) 0.8264 (8,264)

3 Maintenance expenses (10,000) 0.7513 (7,513)

4 Maintenance expenses (10,000) 0.6830 (6,830)

4 Residual value 20,000 0.6830 13,660

Buy option NPV = (98,038)

Step 3: Calculation of equivalent annual annuity (EAA)

The equivalent annual annuity (EAA) for each option can be calculated as follows:

EAA = (r x NPV) / (1 - (1 + r)^-n )

Where:

EAA = equivalent annuity cash flow

NPV = net present value

r = discount rate per period

n = number of periods

Therefore, we have:

Lease option EAA = (0.1 × -95,096) / (1 - (1 + 0.1)^-4) = -30,000

Buy option EAA = (0.1 × 98,038) / (1 - (1 + 0.1)^-4) = -30,928

Since the lease option has a lower EAA of $30,000 in terms of cash outlay than the buy option of higher EAA of $30,928 in terms of cash outlay, the lease option is the better option.

6 0

1 year ago

Read 2 more answers

Problem #1 —Sam Jones operates a small hot-dog stand that offers hot dogs, French fries, soft drinks, coffee, tea, and chips. He

STALIN [3.7K]

Answer:

Among the strategies Sam could use are:

loyalty programs, advertising in different ways and change of location.

Explanation:

Loyalty programs are widely used today, through them the merchant makes sure to obtain customer loyalty to the company.

This program works by rewarding its customers for their purchases, this produces in the customer a sense of loyalty to the trade, thus ensuring a permanent buyer and maintaining the sales margins in the company. In Sam's case, he should reward his regular customers with an incentive, for example, a free drink or a coupon.

Advertising is a tool that has been used since the beginning of companies with the difference that now there are various ways of advertising, for example, Sam could use social media to promote his business and his promotions, he could also use "word of mouth" advertising with their clients to advertise themselves, you can also distribute flyers.

And lastly, Sam may consider that if the other strategies don't work, what he could do is move their business and find a place where he doesn't have competitors.

I hope this information can help you.

8 0

1 year ago

You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been

kondor19780726 [428]

Answer:

Cost of equity will be 10.93 %

So option (E) will be the correct answer

Explanation:

We have given risk free return $r_{rf}=4.10%=0.0410$

Market risk premium RPM = 5.25 % = 0.0525

And $\beta =1.30$

We have to find the cost of common from reinvested earnings , that cost of equity

Cost of equity is given by

Cost of equity = risk free rate + $\beta \times market\ risk\ premium$

= 0.0410+1.30×0.0525 = 0.10925 = 10.93 %

So option (E) will be the correct option

8 0

1 year ago

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat

bearhunter [10]

Answer:

a. The intrinsic value of a share of Xyrong stock is $90.91.

b. Your expected 1-year holding-period return on Xyrong stock is 5.82%.

Explanation:

Given in the question are the following:

rf = risk-free rate of return = 8%, or 0.08

rm = expected rate of return on the market portfolio = 15%. or 0.15

b = beta = 1.2

dp = Dividend payout ratio = 40%, or 0.40

e = latest earnings = $10

ROE = Return on equity = 20%, or 0.20

We therefore proceed as follows:

a. What is the intrinsic value of a share of Xyrong stock ? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can be calculated using the formula for calculating the intrinsic value of a share as follows:

Intrinsic value = (e * dp) / [rf + b * (rm - rf) - ROE * (1 - dp)] .......... (1)

Substituting the values into equation (1), we have:

Intrinsic value = ($10 * 40%) / [8%+ 1.2 * (15% - 8%) - 20% * (1 - 40%)]

Intrinsic value = $4 / [8% + 1.2 * 7% - 20% * 60%

Intrinsic value = $4 / (8% + 0.084 - 12%)

Intrinsic value = $4 / 0.044

Intrinsic value = $90.91

Therefore, the intrinsic value of a share of Xyrong stock is $90.91.

b. If the market price of a share is currently $100, and you expect the market price to be equal to the intrinsic value one year from now, what is your expected 1-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

To do this, we first calculate the price of the share after one year from now as follows:

p1 = Intrinsic value * (1 + ROE * (1 - dp)) ............................ (2)

Where p1 denotes the price of the share after one year from now.

Substituting the relevant values into equation (2), we have:

p1 = 90.91 * (1 + 20% * (1-40%))

p1 = 90.91 * (1 + 20% * 60%)

p1 = 90.91 * 1.12

p1 = 101.8192

We can now calculate the expected 1-year holding-period return on Xyrong stock as follows:

Expected 1-year holding-period return = (p1 + e * dp) / 100 - 1 ............ (3)

Substituting the relevant values into equation (3), we have:

Expected 1-year holding-period return = [(101.8192 + 10 * 40%) / 100] - 1

Expected 1-year holding-period return = [105.8192 / 100] - 1

Expected 1-year holding-period return = 1.058192 - 1

Expected 1-year holding-period return = 0.058192, or 5.82%

Therefore, your expected 1-year holding-period return on Xyrong stock is 5.82%.

4 0

1 year ago

Companies that manufacture products with a very ______ product life cycle have ______ as their core competency.

Companies that manufacture products with a very product life cycle have as their core competency.