Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer: a. $5.50
b. $6.1
c. $3,500,000
Explanation:
a. From the question, we are informed that Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding and that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares.
We are informed that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares. This is a transaction and therefore, the value if the share won't be changed. So, the value for the share will still be $5.50.
b. If the only imperfection is corporate tax rate of 30%, the share price after this announcement will be:
= [30% × (20million/10million)] + $5.50
= [0.3 × 2] + $5.50
= $0.6 + $5.50
= $6.1
Therefore, the share price be after this announcement will be $6.1.
c. If the share price rises to $5.75 after this announcement, the PV of financial distress costs Hawar will incur as the result of this new debt will be:
= ($6.1 - $5.75) × 10,000,000
= $0.35 × 10,000,000
= $3,500,000
Answer:
The correct answer is A. the secondary market; prospectus.
Explanation:
The financial market is a component of the main capital goods market in which securities and securities that already have an offer in the main market are traded. Depending on the situation described, the potential buyer may choose to buy the traded shares that are on the secondary market, but for this it is necessary to evaluate the financial results described by the company in order to reinforce or reject their idea.
Answer:
Activity Rates
Consultation $150
Drawings $58
Modeling $0.7
supervision $190
Billings $1037.5
Collections $1642.5
Total overhead allocated: $ 126,826
Explanation:
First, we divide the cost of each activity over the base total to get the rate.
![\left[\begin{array}{ccccc}$Activity&Driver&cost&Total&Rate\\$Consultation&$contact hours&315000&2100&150\\$Drawings&$desing hours&104400&1800&58\\$Modeling&$square feet&32200&46000&0.7\\$supervision&$days&228000&1200&190\\$Billings&$jobs&8300&8&1037.5\\$Collections&$jobs&13140&8&1642.5\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26Driver%26cost%26Total%26Rate%5C%5C%24Consultation%26%24contact%20hours%26315000%262100%26150%5C%5C%24Drawings%26%24desing%20hours%26104400%261800%2658%5C%5C%24Modeling%26%24square%20feet%2632200%2646000%260.7%5C%5C%24supervision%26%24days%26228000%261200%26190%5C%5C%24Billings%26%24jobs%268300%268%261037.5%5C%5C%24Collections%26%24jobs%2613140%268%261642.5%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Now we apply this rate against the job activity measurement:
![\left[\begin{array}{ccccc}$Activity&Job&$Rate&$Allocated\\$Consultation&410&150&61500\\$Drawings&352&58&20416&\\$Modeling&7400&0.7&5180&\\$supervision&195&190&37050&\\$Billings&1&1037.5&1037.5&\\$Collections&1&1642.5&1642.5&\\$Total&&&126826&\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26Job%26%24Rate%26%24Allocated%5C%5C%24Consultation%26410%26150%2661500%5C%5C%24Drawings%26352%2658%2620416%26%5C%5C%24Modeling%267400%260.7%265180%26%5C%5C%24supervision%26195%26190%2637050%26%5C%5C%24Billings%261%261037.5%261037.5%26%5C%5C%24Collections%261%261642.5%261642.5%26%5C%5C%24Total%26%26%26126826%26%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Answer:
B. Jury of executive opinion method.
Explanation:
There are several methods of forecasting sales, one of which is Jury of executive opinion method. In this method, senior executives in an organization are called upon by the upper management to analyze, deliberate and come up with what probably will be the future sales of the organization which will in turn drive future revenue.
In as much as the people involved have experience in terms of forecasting, their overall submission will form the basis of future sales forecast of the organization.
Unlike Delphi method which involves the use of experts in analyzing and forecasting future sales and whose procedure is somewhat rigorous and formal, jury of executive opinion is not formal and only rely on the outcome of deliberations done by the managers appointed by the organization.
Other method of sales forecast are market share method, buyer intention method. etc.
