You are given the following information regarding sales and inventory levels over time for your firm: Year Inventory Sales 2019 $7,869 $12,502 2020 $7,297 $13,456 2021 $9,263 $17,845 2022 $7,135 $15,326 2023 $7,749 $14,464 Given this information, determine the level of safety stocks that the firm holds. $1,727 $3,755 $1,268 $2,531 O $3,131
Q: pharoah marble company has total assets of 13350000 sales of 18690000 and net income of 4672500.…
A: Certainly! Let's break down the steps involved in calculating Pharoah Marble Company's External…
Q: None
A: Calculate the after-tax cost of leasing and compare it to the after-tax cost of borrowing and buying…
Q: A(n) budget is one that can be adjusted over time for changing environmental conditions. A operating…
A: In contrast, an operating budget is a static financial plan that outlines projected revenues and…
Q: A call with a strike price of $50 costs $5. A put with the same strike price and expiration date…
A: First, let's define the terms:Call Option: An agreement that gives an investor the right (but not…
Q: 23. Non-callable bonds currently sells for 755.90. they have a 10-year maturity with yield to…
A: To find the coupon rate of the non-callable bond, we need to use the formula for the present value…
Q: None
A: 4. Equivalent Annual Cost (EAC):EAC = TPV / Annuity Factor (Present Value of an Annuity of $1 for N…
Q: Vijay
A: Payback PeriodThe payback period is the number of years it takes for the project to recover its…
Q: To go on a summer trip, Michael borrows $800. He makes no payments until the end of 3 years, when he…
A: Given information, Principal amount (P) = $800Time (t) = 3 yearsSimple interest rate (r) = 6% or…
Q: Problem 16-09 (Cost of Trade Credit) Question 5 of 7 ▸ Check My Work Cost of Trade Credit Grunewald…
A: The problem involves calculating the nominal and effective costs of trade credit for Grunewald…
Q: 33. the commercial package policy declarations contain interlines enduements cause of loss forms…
A: Without a doubt! To get a better understanding of each of the components that are specified in the…
Q: Assume that the company has a current ratio of 1.2. Now which of the above actions would improve…
A: To improve the current ratio, you want to increase the numerator (current assets) or decrease the…
Q: An is considering to take out a loan of $10,000 to fund this promotion service. Option 1: Ella needs…
A: Assuming the loan amount is the same for both options, we can calculate the total cost of borrowing…
Q: Al-Biruni Inc. borrowed $10 millions at the beginning of 2022 with an annual interest rate of 9.5%.…
A:
Q: 28 A company has four mutually exclusive investment opportunities, each one yielding different…
A: Expected value can be calculated using this formula: E(x) = ∑ x • P(x)where:x = outcomeP(x) =…
Q: None
A: We can determine the bond's yield to maturity (YTM) using the following information: Face value (FV)…
Q: Am. 135.
A: σ bonds= (0.20×(17%−10%) 2)+(0.50×(9%−10%) 2)+(0.30×(7%−10%) 2)�bonds=(0.20×49)+(0.50×1)+(0.30×9)σ…
Q: A collar is established by buying a share of stock for $64, buying a 6-month put option with…
A: Step 1:(a). delta of call = N(d1) delta of put = N(d2) - 1 Hence, in collar if stock price…
Q: You can come across different situations in your life where the concepts from capital budgeting will…
A: Certainly! Here's a further explanation for each term and situation:1. **Monte Carlo Simulation**:…
Q: TABLE 20.2 Nonforfeiture options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE Years…
A: Additionally, there are calculations provided for the cash value based on the face value of $1,000.…
Q: 3.
A: Step 1:1. Define Variables:Cost (C):Techron I: $303,000Techron II: $525,000Life (L):Techron I: 3…
Q: f. Prepare a Loan Amortization Schedule for the first three months of the mortgage. Show your work!…
A: To prepare a loan amortization schedule for the first three months of a mortgage, we first need some…
Q: Juan Diego began the year with a tax basis in his partnership interest of $53,800. During the year,…
A: Detailed explanation: Question a.Juan Diego will report $21,520 in partnership ordinary business…
Q: Present value For the case shown in the following table, calculate the present value of the cash…
A:
Q: am. 126.
A: In the above answer, the Net Present Value (NPV) of Project Delta is negative (−$150,019−$150,019),…
Q: A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free asset currently earns 4…
A: Step 1:(a). The return of a portfolio is the weighted average return of the securities which…
Q: 7.16 The cash flows associated with a public works project in Buffalo, New York, are shown. Use the…
A: To determine the economic justification of the public works project in Buffalo, New York, we will…
Q: This is an open ended question and you need to do some research to get the answers: Is arbitrage…
A: Arbitrage is neither inherently good nor bad. It is a financial strategy that traders use to take…
Q: ok nt ences Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the…
A: Given : Equity = $220,000Total Assets = $375,000Net Income = $46,000Dividends = $6,800 Solutions: a.…
Q: Stock X has systematic risk of betax=1 and the analyst forecasts its return to be 12%. Stock Y has…
A: 2. Alpha of Each Stock and Better Buy:Alpha (α) measures the difference between a stock's actual…
Q: When Jamal graduated from college recently, his parents gave him $1,000 and told him to use it…
A: Steps
Q: Calculate the price of a 5-year semi-annual coupon bond with an annual coupon rate of 1.875% and…
A: EXPLANATIONThe difference in YTMs between two 5-year bonds could be attributed to a variety of…
Q: You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of…
A: Expected return of risky portfolio = 0.60*14 + 0.40*10 % = 12.40% let the investment in a risky…
Q: Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in…
A: Dividend of stock A:$25=D/(15%-10%)$25*5%=DD=$1.25Dividend of stock B:$25=D/(15%-5%)$25*10%=DD=$2.5…
Q: Problem 11-19 (Algo) The annual demand for a product is 15,000 units. The weekly demand is 288 units…
A: Step 1:Given:D: Annual demand for the product = 15,000 unitsd: Weekly demand = 288 unitsσ: Standard…
Q: Please use excel in the answer
A: In this scenario, we are conducting a Benefit-Cost (B/C) analysis for two potential locations to…
Q: 2. Notable Nothings plans to issue new bonds with the same yield as its existing bonds. The existing…
A: For the purpose of calculating the cost of debt before taxes, it is necessary to ascertain the yield…
Q: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$…
A:
Q: 茶 O Points: 0 of 1 Save Your client has $101,000 invested in stock A. She would like to build a…
A: Step 1: Step 2: Step 3: Step 4:
Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…
A: Let's break down the calculation of the Operating Cash Flow (OCF) for Esfandairi Enterprises'…
Q: We are examining a new project. We expect to sell 6,900 units per year at $63 net cash flow apiece…
A: The objective of the question is to calculate the Net Present Value (NPV) of the project considering…
Q: The venire is: a pool of potential jurors. the area in the courtroom where the jury sits. the…
A: The question is asking for the definition of the term 'venire' in the context of a courtroom or…
Q: Superior Company provided the following data for the year ended December 31 (all raw materials are…
A: The objective of the question is to prepare the schedules of cost of goods manufactured and cost of…
Q: Bhupatbhai
A: C. 10.8% 1. Calculating the Purchase Price of the BondUse the present value (PV) formula for each…
Q: Santa Claus Enterprises has 174,000 shares of common stock outstanding at a current price of $46 a…
A: Option d: This option is correctStep 1:We have to calculate the capital structure weight of the…
Q: If a term life insurance policy isconvertible, it can be: Question38 options: a) revised as neededby…
A: When a term life insurance policy is described as "convertible," this typically means that the…
Q: Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $157,000…
A: Option (a) $16,360: This option is correct because it is the closest match to the calculated Net…
Q: Question: Does microfinance program innovation reduce income inequality? Discuss: Literature Review
A: Microfinance programs, designed to provide financial services to low-income individuals and…
Q: Vijay
A: To calculate the after-tax cost of debt, we need to use the formula: After-tax cost of debt =…
Q: 13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to Houston.…
A: Option D is correct because the trailer interchange agreement between Alston Trucking and Sykes…
Q: Assume that the 5 year annual spot rate is 15% and the 5 year annual six - month forward rate is…
A: 5 Year Annual Spot RateR1=15%=0.15 [Period 5 Years]5 Year Annual Six month forward rateR2=16%=0.16…
Step by step
Solved in 2 steps
- FROM THE FOLLOWING, CALCULATE PROFITABILITY RATIOS.TRADING AND PROFIT AND LOSS ACCOUNT OF MMR & CO.FOR THE YEAR ENDING 31.12. 2019(HORIZONTAL FORMAT)PARTICULARS $ PARTICULARS $Opening stock 199,000 Sales 1,700,000Purchases 1,119,000 Closing stock 298,000Gross profit 680,0001,998,000 1,998,000Administrationexpenses300,000 Gross profit 680, 000Selling expenses 60,000 Interest 18,000Financeexpenses30,000Loss on sale ofplant8,000Net profit 300,000698,000 698,000Please find: Days' sales in inventory, Receivables Turnover, Equity Multipli Use information from the balance sheet and income statement to calculate the following financial ratios and the market value added (MVA). (Whenever balance sheet numbers are used to calculate financial ratios, please ensure that you use the average of the 2019 and 2020 numbers in your calculation. To calculate MVA, you can assume that the average book value number for common stock and paid-in-surplus is the amount that the shareholders initially invested in the company.)Selected ratios of Company X are shown below: Inventory turnover Days' sales uncollected Days' purchases in accounts payable Total asset turnover Equity ratio Times interest earned 2021 5.3 32.4 21.0 2.6 0.8 N.A. 2020 7.1 18.3 20.0 2.5 0.8 N.A. Using the financial ratios provided, analyse the performance of Company X in 2021 compared to the previous year.
- You have been hired as a financial analyst of a firm and your team is working on an independent assessment of XYZ Inc. Your assistant has provided you with the following data for XYZ Inc. and their industry. Ratio Inventory Turnover Receivables in days Debt to Equity 2020 2019 2018 2020- Industry Average R r 62.65 42.42 32.25 94 63 50 115 d 53.25 0.75 0.85 0.90 0.88 Quick Ratio Curr:ent Ratio 1.028 1.03 1.029 1.33 1.21 1.15 1.25 1.031 Required: a) In annual report of firm CEO wrote, we had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivables and short- term marketable securities).” Is the CEO correct? b) What can you say about the firm's collection period and inventory turnover?The following historical stock returns are for Companies A and B, and the Market: Company B 8.00% 18.00% 16.00% 2.00% 18.00% Year Company A 1 2 3 4 5 12.00% 16.00% 22.00% 16.00% 10.00% Market 8.00% 10.00% 14.00% 8.00% 10.00% Now make the following assumptions for Company B: 1. The risk-free rate is expected to be 4.0 percent, the return on the market is expected to be 16.0 percent. CAPM is the correct model of required returns for retained earnings. 2. The firm just issued 10-year bonds that pay an annual coupon of $90.00 ($45.00 every 6 months), matures for $1,000, and sold for $1,040.05835. 3. The firm can issue preferred stock at a net price of $42.00. This preferred stock pays an annual dividend of $5.25. 4. The firm's targeted capital structure is 30 percent debt, 15 percent preferred, and 55 percent equity (which can be raised through additions to retained earnings). 5. The firm's tax rate is 40.0 percent. Given this information, determine the best estimate of Company B's…At the EOQ, what is the firm’s total inventory costper year, assuming safety stock = 15 units?
- N1. Account Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2021. (Use sales when computing the inventory turnover and use total stockholders' equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)Using the five-way DuPont deconstruction of ROE, what is the ROE for a firm with the following: EBIT margin 0.14 Interest burden 0.8 Net after taxes 0.71 Equity multiplier Inventory turns 6.1 Asset turnover 1.7 O 0.2298 0.1916 O 0.2031. O 0.2118 0.2207 1.7On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? Question content area bottom Part 1 A.$5.40 B. $7.19 C.$8.00 D.$3.60
- Identifying Comparables and Valuation using PB and PETailored Brands Inc.’s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Ticker MarketCap($ mil.) PBCurrent ForwardPE (FY1) EPS 5-YearHistoricalGrowth Rate ROE(T 4Q) Debt-to-Equity(Prior Year) TLRD -- -- -- (0.47)% 22.50% 2.53 GCO 585.7 1.00 9.699 (323.73)% (5.86)% 0.13 ZUMZ 789.7 1.95 14.17 3.28% 13.85% 0.00 GES 1,147.0 2.07 13.19 (37.69)% 1.90% 0.56 ANF 988.2 1.00 19.69 9.37% 6.35% 0.25 TLYS 293.7 1.68 11.6 5.51% 13.93% 0.00 M 4,760.0 0.75 5.458 (1.74)% 16.70% 0.74 (a) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD’s equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places…Use Apple’s financial statements to calculate the following ratios and summary measures for fiscal 2020 and 2019 (round to the nearest tenth). Indicate whether the ratio was more favorable in 2020 or 2019. Apple’s stock price was $115 per share on Sept. 30, 2020, and $55 on Sept. 30, 2019. Fiscal 2020 Fiscal 2019 Is the Ratio more favorable in 2020 or 2019? DAYS RECEIVABLE 21.43 32.16 2020 DAYS INVENTORY 8.79 9.09 2019 RETURN ON ASSETS PROFIT MARGIN % GROSS MARGIN % RETURN ON EQUITY CURRENT RATIO 1.36 1.54 2019 QUICK RATIO EBITDA DEBT-TO-EQUITY RATIO n/a DIVIDEND PAYOUT RATIO n/a PE RATIO n/aDetermine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts. 5. Number of days sales in receivables 7. number of days sale in inventory 12. return on total asset 14. return on common stockholders equity 17. dividends per share of common stock 18. dividend yield i need help on these questions i have provided please please please