M&M Enterprises is a publicly traded company. It currently
has 50 million shares trading at $20/share...
M&M Enterprises is a publicly traded company. It currently
has 50 million shares trading at $20/share and $250 million in book
value of equity. The firm also has book value of debt of $ 75
million and market value of debt of $ 100 million. The firm also
has operating lease commitments, 30 million in each of the next 10
years. The cost of equity for the company is 12%, the pre-tax cost
of debt is 4% and the marginal...
A company has
400,000 shares of common stock outstanding at a market price of $25
a...
A company has
400,000 shares of common stock outstanding at a market price of $25
a share and a Beta of 0.72. This stock just paid an annual dividend
of $1.10 a share (D0). The dividend is expected to grow
3 percent annually. The firm also has 50,000 shares of 6.5 percent
preferred stock with a market value of $60 a share. The preferred
stock has a par value of $100. The company has $3.5 million of face
value bonds...
If a company values inventory at the lower of cost or market,
which of the following...
If a company values inventory at the lower of cost or market,
which of the following is the value of merchandise inventory on the
balance sheet? Apply the lower-of-cost-or-market method to
inventory as a whole.
Item
Inventory Quantity
Unit Cost Price
Unit Market Price
Product C
420
$ 6
$ 5
Product D
370
12
14
a.$6,540
b.$7,700
c.$6,960
d.$7,280
During times of rising prices, which of the following is
not an accurate statement?
a.LIFO will result in higher income...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages,...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages, salaries, benefits $6,000,000
Raw materials 3,000,000
Depreciation 1,500,000
General, selling, and administrative expenses 1,500,000
Total operating expenses 12,000,000
Earnings before interest and taxes (EBIT) $3,000,000
Less: Interest expense 750,000
Earnings before taxes $2,250,000
Less: Income taxes 1,000,000
Earnings after taxes $1,250,000
Less: Preferred dividends 250,000
Earnings available to common stockholders $1,000,000
Earnings per share—250,000 shares outstanding $4.00
Assume that all depreciation and 75 percent...
______1. Which of
the following would indicate that the firm may be carrying excess
inventory?
A...
______1. Which of
the following would indicate that the firm may be carrying excess
inventory?
A rise in total asset turnover
A decline in the current ratio
A decline in sales
A decline in the quick ratio while current ratio remains
stable
A decline in days’ sales in inventory
2. The following data are taken from the sheet at
the end of the current year:
Cash
543,000
Short-term
Investments
826,000
Notes Payable,
long-term
235,000
Prepaid...
Eagle Company makes the MusicFinder, a sophisticated satellite
radio. Eagle has experienced a steady growth in...
Eagle Company makes the MusicFinder, a sophisticated satellite
radio. Eagle has experienced a steady growth in sales for the past
five years. However, Ms. Luray, Eagle's CEO, believes that to
maintain the company's present growth will require an aggressive
advertising campaign next year. To prepare for the campaign, the
company's accountant, Mr. Bednarik, has prepared and presented to
Ms. Luray the following data for the current year, year 1:
Variable costs:
Direct labor (per unit)
$
87
Direct materials (per...
1.)Calculate the operating ratios for each trucking
company and submit as a percentage
Take the revenue...
1.)Calculate the operating ratios for each trucking
company and submit as a percentage
Take the revenue and total, take the expenses and total
and divide them for a percentage.
As a student and with some positions in the supply chain, you
may be at some time required to evaluate a motor carrier. The
question is how is the best way to make this evaluation?
If you get material and statistics from the
carrier, you will get a volume of figures...