A manufacturing firm has been in business for 25-years. Annual sales revenue is approximately $50 million per year. Market competition has created poor profits for the past 5-years. Additionally, COVID-19 has caused a large price increase for raw materials and healthcare costs are projected to jump 15% next fiscal year. There have been no wage increases at this organization for the past 4-years.
The VP of Operations and Finance is proposing to invest $5 million in equipment. The considerations are as follows:
- Higher production capacity - Approximately 20% increase in 18-months.
- Better precision - Precision will increase from 0.001 millimeters to 0.0001 millimeters and open the company up to more business opportunities.
- Cutting oils are non-toxic, compared to the current machinery that uses strong solvents and petroleum oils.
- Machine guards are layered and redundant. They also reduce machine noise to non-actionable levels.
- Finance is projecting a 6% profit margin increase.
- Operations is projecting that 6 fewer machine operators are needed.
- Production disruptions are expected for a minimum of 6 months related to equipment changeover, troubleshooting, and training.
The VP of Operations and Finance has asked for your assistance in building and presenting the proposal to the executive team and senior workers on the production floor. She admits she is great with numbers, but not so good with people and getting her point across.

Answers

Answer 1

The proposal to invest $5 million in equipment should be presented to the executive team and senior workers, highlighting the potential benefits of higher production capacity, better precision, and safer working conditions.

It is important to address the concerns of both finance and operations, emphasizing the projected profit margin increase and reduced need for machine operators, while also acknowledging the production disruptions that will occur during the transition.

The non-toxic cutting oils and layered, redundant machine guards can be emphasized as part of the company's commitment to sustainability and employee safety. Effective communication and transparency about the proposal's potential impacts on the company and its employees can help build support and trust among all stakeholders involved.

For more questions like Profit click the link below:

https://brainly.com/question/15036999

#SPJ11


Related Questions

if the short-run aggregate supply curve is upward sloping, which of the following will cause inflation? responses an increase in long-run aggregate supply an increase in long-run aggregate supply an increase in short-run aggregate supply an increase in short-run aggregate supply an increase in aggregate demand an increase in aggregate demand a decrease in aggregate demand a decrease in aggregate demand a decrease in aggregate demand and an increase in aggregate supply

Answers

An increase in aggregate demand will cause inflation when the short-run aggregate supply curve is upward-sloping. This is because as aggregate demand increases, firms will need to increase production in the short run, leading to higher prices due to limited supply. The correct option is an increase in aggregate demand.

To explain further, when the short-run aggregate supply (SRAS) curve is upward-sloping, it indicates that as the price level increases, the number of goods and services supplied by producers also increases. Inflation occurs when there is a sustained increase in the general price level.

When there is an increase in aggregate demand (AD), it shifts the AD curve to the right. This results in a higher equilibrium price level and output, which leads to inflation. Other options such as an increase in short-run or long-run aggregate supply would not cause inflation, as these changes would typically lower the price level by increasing the number of goods and services supplied. Similarly, a decrease in aggregate demand would not cause inflation, as it would lead to a decrease in the price level.

Thus the correct option is an increase in aggregate demand.

Learn more about Supply Curve :- https://brainly.com/question/11717727

#SPJ11

yearly performance appraisal meetings falling on the anniversary date of the employee’s hire date are the ideal method of communicating performance expectations to the employee. true or false

Answers

Yearly performance appraisal meetings falling on the anniversary date of the employee’s hire date are the ideal method of communicating performance expectations to the employee. true

While annual performance appraisal meetings can be a valuable tool for communicating performance expectations, they may not necessarily be the "ideal" method for all employees.

The effectiveness of this method depends on several factors, including the nature of the job, the individual employee's communication preferences and learning style, and the organization's culture and goals. Some employees may prefer more frequent feedback, while others may find yearly meetings overwhelming or insufficient.

Additionally, performance management should be an ongoing process, with regular check-ins and opportunities for dialogue throughout the year. Therefore, it may be more appropriate to use a variety of methods, including regular feedback and coaching, to communicate performance expectations effectively.

Learn more about Yearly performance

https://brainly.com/question/17037775

#SPJ4

'The given statement is false because while yearly performance appraisal meetings on the anniversary date of the employee's hire date can be a useful way to review and communicate performance expectations, they are not necessarily the ideal method. '


Frequent feedback: Employees benefit from more frequent feedback on their performance, as it helps them to understand their strengths and areas for improvement, adjust their behavior, and stay aligned with the company's expectations. Waiting for a yearly appraisal may result in missed opportunities for growth and development.
Timeliness: Addressing performance issues or acknowledging successes closer to when they occur is more effective than waiting for the anniversary date. Immediate feedback allows employees to rectify any issues or build on their accomplishments.
Adaptability: Businesses and job requirements can change quickly, and waiting for an annual appraisal may not be sufficient to keep employees up-to-date with new expectations or goals. Regular check-ins and ongoing communication can help to keep everyone on the same page.
Employee engagement: Regular performance conversations can foster stronger working relationships between managers and employees, resulting in higher engagement and job satisfaction.
In conclusion, while yearly performance appraisal meetings have their merits, the ideal method of communicating performance expectations to employees involves more frequent feedback, timely discussions, adaptability, and increased engagement through ongoing performance conversations.

For more such questions on performance visit:

https://brainly.com/question/27953070

#SPJ11

Your client wants to prepay $15 million in notes, which bear interest at a fixed rate of 7.5% per annum, payable quarterly. The notes do not provide for any payments of principal other than at maturity and there are 27 months until maturity. The Note Purchase Agreement provides for the payment of a "Make-Whole Amount" in the vent of prepayment of principal. This is an amount, not less than zero, which is the amount by which (i) the present value of all remaining payments of principal and interest that would be due with regard to the amount of principal that is be prepaid, discounted to the present date by a "Reinvestment Yield," exceeds (ii) the amount of principal that is being prepaid. The "Reinvestment Yield" is equal to the sum of (a) 75 basis points plus (y) the yield to maturity implied by the U.S. Treasury yields for the remaining contractual term of the principal being paid. The current implied US Treasury yield for obligations with 27 months remaining in their term is 2.45%.What is the applicable Make-Whole Amount that is due in connection with the prepayment? Show the Excel formula you used to compute the answer.

Answers

The applicable Make-Whole Amount that is due in connection with the prepayment is $1,316,485.95.

The Excel formula used to compute this is: =max(0, (PV((0.075/4), 274, -15000000)(0.0245+0.0075/4+1)-15000000))

To calculate the Make-Whole Amount, we need to find the present value of all remaining payments of principal and interest that would be due with regard to the amount of principal that is to be prepaid, discounted to the present date by a "Reinvestment Yield," and then subtract the amount of principal being prepaid.

First, we calculate the Reinvestment Yield, which is equal to the sum of (a) 75 basis points plus (b) the yield to maturity implied by the U.S. Treasury yields for the remaining contractual term of the principal being paid.

So, the Reinvestment Yield is:

= 0.0245 + 0.0075/4

= 0.026875

Next, we calculate the present value of all remaining payments of principal and interest using the PV function in Excel:

PV((0.075/4), 274, -15000000) = $15,869,334

Finally, we calculate the Make-Whole Amount by multiplying the present value by the Reinvestment Yield plus 1, and then subtracting the amount of principal being prepaid:

= 15,869,334 (0.026875 + 1) - 15,000,000

= $1,316,485.95

Since the Make-Whole Amount cannot be less than zero, the final formula used in Excel is =max(0, (PV((0.075/4), 274, -15000000)(0.0245+0.0075/4+1)-15000000)).

Learn more about present value: https://brainly.com/question/20813161

#SPJ11

Maria made an early withdrawal from her Roth IRA of $4600 in
principal and $1280 in earnings. What would be the amount of
penalty she would pay on this early withdrawal?

Answers

Maria would have to pay a penalty of $128 on her early withdrawal of $1280 in earnings from her Roth IRA.

Maria's early withdrawal from her Roth IRA of $4600 in principal and $1280 in earnings would result in a penalty of 10% on the earnings portion of the withdrawal. This means that Maria would have to pay a penalty of $128 (10% of $1280) in addition to the regular income tax that she would have to pay on the earnings portion of the withdrawal.

It's important to note that there are certain exceptions that allow individuals to withdraw funds from their Roth IRA without penalty, such as if the funds are being used for certain qualified expenses like purchasing a first home or paying for higher education expenses.

However, if Maria doesn't qualify for any of these exceptions and withdraws the funds before the age of 59 and a half, she would have to pay the 10% penalty in addition to the income tax on the earnings portion of the withdrawal.

For more about IRA:

https://brainly.com/question/9969005

#SPJ11

valpar company produces four types of laundry hampers and uses abc to allocate overhead costs to products. during the upcoming period the company expects to produce 72,000 total units with the following costs and cost drivers: activities unit-level batch-level product-level facility-level cost $16,000 $8,000 $15,000 $36,000 cost driver 4,000 labor hours 200 set-ups % of use 72,000 units production of 20,000 units of its popular foldable hamper required 1,200 labor hours, 50 setups, and consumed 20% of the product-level cost pool. what amount of unit-level costs will be allocated to the product? multiple choice question. $3,200 $4,800 $4,000 $4,445

Answers

The amount of unit-level costs allocated to the product is $4,800.

How to determine the unit-level costs

Valpar Company produces four types of laundry hampers and uses Activity-Based Costing (ABC) to allocate overhead costs to products.

They expect to produce 72,000 total units with the following costs and cost drivers:

- Unit-level cost: $16,000; Cost driver: 4,000 labor hours

- Batch-level cost: $8,000; Cost driver: 200 set-ups

- Product-level cost: $15,000; Cost driver: % of use

- Facility-level cost: $36,000; Cost driver: 72,000 units

Production of 20,000 units of the foldable hamper required 1,200 labor hours, 50 set-ups, and consumed 20% of the product-level cost pool.

To find the amount of unit-level costs allocated to the product, we first need to calculate the cost per labor hour:

$16,000 / 4,000 labor hours = $4 per labor hour

Next, we multiply the cost per labor hour by the number of labor hours used for the foldable hamper:

$4 per labor hour × 1,200 labor hours = $4,800

The correct answer is $4,800.

Learn more about unit-level cost at

https://brainly.com/question/29315527

#SPJ11

if the board of directors approves a three for two stock split, an investor who owns 150 shares before the split owns _______ shares after the split.

Answers

If the board of directors approves a three-for-two stock split, an investor who owns 150 shares before the split would own 225 shares after the split.

Here's a step-by-step explanation:

1. In a three-for-two stock split, an investor receives three new shares for every two shares they currently own.
2. To determine the number of new shares the investor will receive, you can set up a proportion: (3 new shares) / (2 old shares) = (x new shares) / (150 old shares).
3. To solve for x, cross-multiply: (3 * 150) / 2 = x.
4. Calculate the result: x = 450 / 2 = 225 shares.

So, after the three-for-two stock split, the investor would own 225 shares in total. The purpose of a stock split is to make the shares more affordable and increase liquidity in the market, making it easier for investors to buy and sell shares.

When the stock price is high, some investors may be deterred from investing due to the high cost per share. By splitting the stock, the board of directors makes the stock more accessible to a broader range of investors, potentially increasing demand and leading to growth in the company's market value.

It's important to note that a stock split does not change the overall value of an investor's holdings; it merely increases the number of shares while proportionally decreasing the price per share.

To know more about shares refer here:

https://brainly.com/question/28392295#

#SPJ11

Paola has little choice in how to accomplish her work tasks—her company employs strict process control.
-Skill variety
-Task Significance
-Task Identity
-Feedback
-Autonomy

Answers

Paola's work situation involves strict process control, which means her autonomy is limited. This can affect her skill variety, as she may not have the opportunity to use a diverse range of skills.

Autonomy refers to the degree to which an employee has control over how they perform their work tasks. If Paola's company employs strict process control, she likely has little choice in how to accomplish her work tasks, which suggests a low level of autonomy.Skill variety refers to the degree to which a job requires a variety of different skills and abilities. Task significance refers to the degree to which a job has a meaningful impact on the lives or work of others. Task identity refers to the degree to which a job involves completing a whole, identifiable piece of work. Feedback refers to the degree to which employees receive clear and direct feedback on the effectiveness of their performance.Based on the information provided, it is not clear whether Paola's job involves high or low levels of skill variety, task significance, task identity, or feedback.

Learn more about autonomy here:

https://brainly.com/question/29833005

#SPJ11

gatorade is a well-known drink brand that almost every active person is familiar with, whether you are a professional athlete, hiker, or regular at the gym. the best distribution strategy for this product would be multiple choice intensive. specialized. selective. multichannel. exclusive.

Answers

The best distribution strategy for Gatorade would be a multichannel approach to reach a wide range of customers.

The target market for Gatorade comprises physically active people who need energy and hydration while exercising. The ideal strategy for this brand would be a multichannel distribution plan. Reaching as many clients as possible entails using a variety of distribution channels, including supermarkets, convenience shops, vending machines, internet merchants, and direct selling.

Gatorade can easily access its product by employing a multichannel strategy, which is crucial for a company that caters to consumers who need to keep hydrated and energised while on the road.

Learn more about distribution:

https://brainly.com/question/29368683

#SPJ4

g any system of performance compensation: a. should motivate desired actions b. may encourage unethical behavior c. needs compensating accounting controls to detect and prevent fraud d. all of the above answers are correct e. none of the above answers is correct

Answers

The correct answer is (d) all of the above answers are correct. A system of performance compensation should motivate desired actions, but it may also have unintended consequences, such as encouraging unethical behavior.

Therefore, compensating accounting controls are necessary to ensure that the system operates with integrity and does not incentivize unethical behavior.

Compensating accounting controls are necessary to detect and prevent fraud, ensuring that the system operates with integrity and does not incentivize unethical behavior. These controls may include regular audits, internal controls, and performance monitoring, among others.

However, such a system may also encourage unethical behavior, as individuals may resort to fraudulent or unethical practices to achieve their targets.

To know more about Compensating control:

https://brainly.com/question/31253019

#SPJ4

suppose that the workers were paid 19 dollars per hour for work during the time period 9 am to 5 pm and were paid 28.5 dollars per hour for work during the rest of the day. what would the total personnel costs of the clean up have been under these conditions? total cost

Answers

The total personnel costs of the clean up under these conditions would be:

$152/day + $114/day = $266/day

To calculate the total personnel costs of the clean up, we need to know the number of hours worked during each period. Let's assume that the clean up took place for 8 hours per day, from 9 am to 5 pm, and for 4 hours per day, from 5 pm to 9 pm.

For the 8 hours worked from 9 am to 5 pm, the cost per hour is $19, so the total cost for this period is:

8 hours/day x $19/hour = $152/day

For the 4 hours worked from 5 pm to 9 pm, the cost per hour is $28.5, so the total cost for this period is:

4 hours/day x $28.5/hour = $114/day

Therefore, the total personnel costs of the clean up under these conditions would be:

$152/day + $114/day = $266/day

To learn more about personnel costs  here

https://brainly.com/question/26527325

#SPJ4

On her 18th birthday, Riley deposits $9,000 per year into a retirement account with an estimated 9.5% rate of return. She will stop making deposits after her 61st birthday (i.e., she will make her final deposit on her 61st birthday), and her investment will continue to grow until she retires at age 75. Assuming her deposits occur at the beginning of each year, how much money will Riley have in her retirement account on her 75th birthday?

Answers

Riley will have approximately $3,086,367.19 in her retirement account on her 75th birthday.

Based on the given information, Riley will make 44 deposits into her retirement account, starting on her 18th birthday and ending on her 61st birthday. Each deposit is $9,000, so the total amount of money she will deposit into her account is:

44 deposits x $9,000 per deposit = $396,000

Assuming an estimated 9.5% rate of return, her investment will grow each year. To calculate how much money she will have in her retirement account on her 75th birthday, we need to use the formula for the future value of an annuity:

FV = Pmt x (((1 + r)^n - 1) / r)

Where:
- FV is the future value of the annuity
- Pmt is the amount of the regular payments (in this case, $9,000 per year)
- r is the annual interest rate (9.5%)
- n is the number of periods (in this case, 57, since she will make her final deposit on her 61st birthday and retire at age 75)

Plugging in the numbers:

FV = $9,000 x (((1 + 0.095)^57 - 1) / 0.095) = $3,086,367.19
Learn more about  personal finance and retirement planning: https://brainly.com/question/30437189

#SPJ11

Surveys on counselor usage of assessment instruments (e.g., Ekstrom, Elmore, Schafer, Trotter, & Webster, 2004)indicate that:

Answers

Based on surveys on counselor usage of assessment instruments, such as Ekstrom, Elmore, Schafer, Trotter, and Webster (2004), it has been found that counselors widely use these tools in their practice.

These instruments are often utilized to gather important information about clients' backgrounds, personalities, behaviors, and mental health concerns. This data can be used to develop treatment plans and interventions that are tailored to the specific needs of each individual client.

However, it is important to note that the usage of assessment instruments should be done in an ethical and responsible manner.

Counselors should be trained and educated on the appropriate use and interpretation of these tools, and should also take into account cultural considerations and the potential for bias in the assessment process.

Overall, surveys indicate that the use of assessment instruments is a valuable tool for counselors in their practice, as long as they are used in a responsible and culturally sensitive manner.

To know more about Ekstrom refer here:

https://brainly.com/question/14224903#

#SPJ11

determining cost of land bridger ski co. has developed a tract of land into a ski resort. the company has cut the trees, cleared and graded the land and hills, and constructed ski lifts. a. should the tree cutting, land clearing, and grading costs of constructing the ski slopes be debited to the land account?

Answers

No, the tree cutting, land clearing, and grading costs of constructing the ski slopes should not be debited to the land account.

Instead of the tree cutting, land clearing, and grading costs of constructing, they should be recorded as part of the cost of the ski resort construction project, which would be capitalized and then depreciated over time.

The costs incurred in developing the land into a ski resort are not considered as the cost of the land itself, but rather as the cost of improving the land for a specific use.

Therefore, these costs should be recorded as part of the ski resort construction project's cost and depreciated over the asset's useful life, rather than being added to the land's value. This approach reflects the matching principle of accounting, where costs are recognized in the same period as the revenue they generate.

Learn more about depreciated :

https://brainly.com/question/17827672

#SPJ4

QUESTION 21 If the initial net cash outflow to finance a project with a 5-year life is $100,000 and the company has a cost of capital of 10%, the breakeven (zero NPV) net cash inflow for each of the 5 years is: A. $20,000 B.$26,380 C $379,079 D 5161,051

Answers

The initial net cash outflow to finance a project with a 5-year life is $100,000 and the company has a cost of capital of 10%, the breakeven (zero NPV) net cash inflow for each of the 5 years is A. $20,000.

To calculate the breakeven net cash inflow for each year, we need to use the formula: PV of cash inflows = PV of cash outflows. Since we want a zero NPV, we can set the PV of cash inflows equal to the initial net cash outflow of $100,000.

Using a financial calculator or spreadsheet, we can solve for the annuity payment that would result in a present value of $100,000 over a 5-year period at a 10% discount rate. This gives us an annuity payment of $20,000 per year.

Therefore, the breakeven (zero NPV) net cash inflow for each of the 5 years is $20,000.

For more questions like Cash click the link below:

https://brainly.com/question/10714011

#SPJ11

big board makes high-end custom surfboards and gets new clients primarily by word of mouth. the small company has a few sample surfboards in stock, but it mostly customizes its products to customer specifications. the best supply chain strategy for big board is the strategy, which enables businesses to .

Answers

Based on the information provided, the best supply chain strategy for Big Board would be a flexible supply chain strategy that enables the company to quickly respond to the changing demands of its customers.

Since Big Board primarily customizes its surfboards to meet customer specifications, a flexible supply chain strategy would enable the company to quickly and efficiently adapt to changes in customer demand. This could involve maintaining close relationships with suppliers who can provide the necessary materials and components for custom surfboards, as well as utilizing a streamlined production process that can easily incorporate new designs and specifications.

Furthermore, since Big Board relies heavily on word-of-mouth referrals to attract new customers, a flexible supply chain strategy can also help the company maintain a positive reputation by consistently delivering high-quality, custom surfboards that meet the unique needs and preferences of its customers.

Learn more about flexible supply chain

https://brainly.com/question/14179592

#SPJ4

the acquisition/payment process: group of answer choices helps an organization create value for its stakeholders. can only be applied if an organization sells a product. both helps an organization create value for its stakeholders and can only be applied if an organization sells a product. neither helps an organization create value for its stakeholders nor can only be applied if an organization sells a product.

Answers

The acquisition/payment process helps an organization create value for its stakeholders. Option a is answer.

It involves the procurement of goods and services, as well as the payment for those goods and services. This process is important for any organization, regardless of whether it sells a product or not. By effectively managing the acquisition and payment of goods and services, an organization can ensure that it is obtaining the best value for its money and meeting the needs of its stakeholders, including customers, suppliers, and employees.

Therefore, the correct answer is that the acquisition/payment process helps an organization create value for its stakeholders and is not limited to organizations that sell products.

Option a is answer.

You can learn more about  acquisition/payment process at

https://brainly.com/question/19924219

#SPJ11

which of the following is the best strategy to make sure people who are participating remotely in a video call are included in the meeting?responsesturn the speaker volume up high so that participants can hear the meeting betterturn the speaker volume up high so that participants can hear the meeting betterturn off the phone microphone to avoid feedbackturn off the phone microphone to avoid feedbackaim the camera at an angle that has a view of everyone present in the room

Answers

The best strategy to make sure people who are participating remotely in a video call are included in the meeting is to D) aim the camera at an angle that has a view of everyone present in the room.

Turning up the speaker volume or turning off the phone microphone can create audio problems such as feedback or not being able to hear participants clearly.

On the other hand, aiming the camera at an angle that captures everyone in the room ensures that remote participants can see and hear everyone present, making them feel included and engaged in the meeting. It also allows them to read body language and other nonverbal cues, which can be important in communication.

Overall, ensuring remote participants are included in the meeting helps to promote effective communication and collaboration among all participants and D is correct option.

For more questions like Meeting click the link below:

https://brainly.com/question/27561486

#SPJ11

the process of moving strawberries, blackberries, and raspberries from portland fresh and ready farms to the farmer's market where customers will purchase them, is a marketing activity called

Answers

The process of moving strawberries, blackberries, and raspberries from Portland Fresh and Ready Farms to the farmer's market where customers will purchase them is a marketing activity called "distribution."

Distribution is a critical marketing activity that involves moving products from the manufacturer or producer to the end customer. In this case, the strawberries, blackberries, and raspberries are being transported from the farm to the farmer's market, where they will be sold directly to customers.

Effective distribution is important because it ensures that products are available in the right place at the right time, and in the right quantities. This can help to maximize sales and customer satisfaction while minimizing waste and inefficiency.

In the case of fresh produce like strawberries, blackberries, and raspberries, efficient and timely distribution is particularly important to ensure that the products arrive at their destination in good condition and are available for customers to purchase when they want them.

You can learn more about distribution at

https://brainly.com/question/20693215

#SPJ11

Assume PATS PENS has a required rate of return of 11% and the following expected future dividends:
D1=2
D2=2.4
D3=4
D4=4(1+1.7%)
D5=4(1+1.7%)^2 and so on...
Price the current value of the stock given the future expecred dividends
(Please write in decimal format using 5 decimal places, do not use the $ symbol)

Answers

The current value of the stock, given the expected future dividends, is approximately 12.56586.

How to calculate the current value of the stock

To find the current value of the stock given the expected future dividends, we will use the Dividend Discount Model (DDM).

The formula is as follows:

P0 = (D1 / (1 + r)^1) + (D2 / (1 + r)^2) + (D3 / (1 + r)^3) + ...

Where P0 is the current stock price, Dn is the dividend at year n, and r is the required rate of return.

Given the data:

D1 = 2

D2 = 2.4

D3 = 4

D4 = 4(1 + 1.7%)

D5 = 4(1 + 1.7%)^2

r = 11%

We can now calculate the current stock price:

P0 = (2 / (1 + 0.11)^1) + (2.4 / (1 + 0.11)^2) + (4 / (1 + 0.11)^3) + (4(1.017) / (1 + 0.11)^4) + (4(1.017)^2 / (1 + 0.11)^5) + ...

After calculating the first 5 terms, we get:

P0 = 1.80180 + 1.94483 + 2.88353 + 2.93971 + 2.99579

Adding these terms, we get:

P0 = 12.56586

Learn more about DDM at

https://brainly.com/question/29610266

#SPJ11

The total market value of the common stock of the Okefenokee Real Estate Company is $13.5 million, and the total value of its debt is $8.5 million. The treasurer estimates that the beta of the stock is currently 1.8 and that the expected risk premium on the market is 9%. The Treasury bill rate is 4%. Assume for simplicity that Okefenokee debt is risk-free and the company does not pay tax.
a. What is the required return on Okefenokee stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Required return %
b. Estimate the company cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Cost of capital %
c. What is the discount rate for an expansion of the company's present business? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Discount rate %
d. Suppose the company wants to diversify into the manufacture of rose-colored spectacles. The beta of unleveraged optical manufacturers is 1.15. Estimate the required return on Okefenokee's new venture. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Required return %

Answers

The Capital Asset Pricing Model (CAPM) can be used to determine the needed return on Okefenokee capital assets pricing model shares. The CAPM formula is: Required Return = Market Risk Premium x Beta x Risk-Free Rate.

Here, the beta is 1.5, the market risk premium is 6%, and the risk-free rate (Treasury bill rate) is 4%.

Required Return is 4% plus 1.5 x 6%, or 4% plus 9%, or 13%.

b. We must apply the weighted average cost of capital (WACC) methodology to get the firm's cost of capital:

WACC is equal to (e) + (D/VxRdx(1-Tc))

The equation changes because Okefenokee doesn't pay taxes to:

(EN x Re) + (D/W x Rd) = WACC

E is the market value of the company's stock in its whole ($6 million), D is the market value of the company's debt, and WACC = ($6,000,000/$10,000,000 x 13%) + ($4,000,000/$10,000,000 x 4%).

WACC is calculated as (0.6 x 13%) + (0.4 x 4%) = 7.8% + 1.6% = 9.4%

C. The company's cost of capital, which is 9.4%, would be the discount rate for an expansion of the current firm.

d. Using the updated beta of unleveraged optical producers (1.2), we once more apply the CAPM formula to calculate the needed return on Okefenokee's new business.

Required Return = Market Risk Premium x Beta x Risk-Free Rate

Required Return is equal to 4% + 1.2 x 6%, or 4% + 7.2%, or 11.2%.

Okefenokee's new business requires a return of 11.2%.

To know more about Capital assets pricing model visit:

https://brainly.com/question/31427046

#SPJ4

if you were advising union and management representatives about how to negotiate an agreement, drawing from the concepts in this chapter, what would you tell them?

Answers

For union and management representatives to negotiate an agreement based on the concepts discussed in this chapter.

1. Establish clear goals: Both parties should identify their interests and priorities before entering negotiations. Clear goals will help keep the discussions focused and prevent unnecessary delays and disagreements.

2. Create a collaborative environment: Creating a collaborative environment is crucial for successful negotiations. Both parties should be willing to listen to each other's ideas and suggestions and be open to compromise.

3. Communication: Good communication is essential for successful negotiations. Both parties should be clear and concise in their communication, actively listening to each other, and using open-ended questions to clarify any misunderstandings.

4. Explore interests: Rather than focusing on positions, both parties should explore each other's interests. Understanding the underlying needs and motivations can help identify creative solutions that meet the interests of both parties.

5. Identify possible solutions: Brainstorming possible solutions can help create a more comprehensive agreement. Both parties should identify and evaluate different solutions and assess their feasibility, considering the potential impact of each solution on each party.

6. Seek common ground: Both parties should seek common ground and agree on areas of mutual interest. It is essential to focus on shared goals rather than on what divides them.

7. Focus on the future: Successful negotiations should focus on the future and not on the past. Both parties should aim to create a sustainable agreement that can serve as a foundation for future collaborations.

8. Seek outside help: If negotiations reach a stalemate, seeking the help of a neutral third party can help break the deadlock. Mediators, arbitrators, or facilitators can help both parties find common ground and reach an agreement.

By following these guidelines, union and management representatives can negotiate an agreement that meets the needs and interests of both parties.

Click the below link, to learn more about Union and management:

https://brainly.com/question/2376081

#SPJ11

QUESTION 15 Suppose you were to borrow $50,000 at 10 percent interest, compounded annually. If this will be repaid in five equal annual installments, each payment will be ____
A $11,991 B. $13,190 C. $7.445 D. $8,190

Answers

If you were to borrow $50,000 at 10 percent interest, compounded annually and repaid in five equal annual installments, each payment will be B) $13,190.

The formula to calculate the equal annual payments for a loan is given as:

Payment = PV x r x (1 + r)^n / (1 + r)^n - 1

Where PV is the present value of the loan, r is the interest rate per period, and n is the number of payment periods.

Here, the present value of the loan is $50,000, the interest rate is 10% per year, and the loan is to be repaid in five equal annual installments. So, we have:

PV = $50,000

r = 10% per year

n = 5

Substituting these values into the formula, we get:

Payment = $50,000 x 0.1 x (1 + 0.1)^5 / (1 + 0.1)^5 - 1

Payment = $50,000 x 0.1 x 1.61051 / 0.61051

Payment = $13,190

Therefore, the equal annual payment for this loan would be B) $13,190.

For more questions like Payment click the link below:

https://brainly.com/question/15136793

#SPJ11

Substantive procedures to examine the occurrence assertion for accounts payable include:
A) selecting a sample of vouchers and agreeing them to authorized purchase orders.
B) selecting a sample of vouchers and tracing them to the purchases journal.
C) comparing dates on vouchers to dates in the purchases journal.
D) recomputing the mathematical accuracy of a sample of vendor invoices.

Answers

Substantive procedures for examining the occurrence assertion for accounts payable involve procedures designed to ensure that all transactions recorded in the accounts payable system are valid and have taken place.

A) Selecting a sample of vouchers and agreeing them to authorized purchase orders is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system are valid and have been authorized.

B) Selecting a sample of vouchers and tracing them to the purchases journal is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system have been properly recorded in the accounting records

C) Comparing dates on vouchers to dates in the purchases journal is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system have been properly dated in the accounting records.

D) Recomputing the mathematical accuracy of a sample of vendor invoices is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system have been properly recorded and calculated in the accounting records.

Know more about Accounting here

https://brainly.com/question/29108212#

#SPJ11

the project manager is working with the project sponsor to create the project charter for a medium-sized project. in the milestone schedule with acceptance criteria section of the project charter, how many intermediate milestones should they include?

Answers

The number of intermediate milestones will depend on the level of detail needed to effectively manage the project and ensure successful completion.

The number of intermediate milestones that should be included in the milestone schedule with acceptance criteria section of the project charter depends on the specifics of the project, such as its scope, complexity, and duration. Generally, intermediate milestones are included to help monitor progress and ensure that the project stays on track.

The project manager and sponsor should work together to identify key milestones and develop acceptance criteria for each one. The number of intermediate milestones will depend on the level of detail needed to effectively manage the project and ensure successful completion.

Learn more about project manager at:

brainly.com/question/29023210

#SPJ4

A financial instrument just paid the investor $510 last year. The cash flow is expected to last forever and increase at a rate of 2.7 percent annually. If you use a 7.6 percent discount rate for investments like this, what should be the price you are willing to pay for this financial instrument? (Round to the nearest dollar.)

Answers

To determine the price you are willing to pay for this financial instrument, you need to calculate the present value of its expected cash flows. Since the cash flow is expected to last forever and increase at a rate of 2.7 percent annually, you can use the perpetuity formula to calculate the present value.

The formula is: PV = CF / r, where PV is the present value, CF is the cash flow, and r is the discount rate. In this case, the CF is $510, and the r is 7.6 percent.

Plugging these values into the formula, you get PV = $510 / 0.076 = $6,710.53. Therefore, the price you are willing to pay for this financial instrument should be around $6,711, rounded to the nearest dollar.

To know more about financial instrument, refer to the link:

https://brainly.com/question/29491172#

#SPJ11

You receive a 3-year $14,000 loan with an interest rate of 13% p.a., to be repaid in three annual installments. The loan requires that you make two equal total payments of $3,000 at t = 1 and t = 2, with the remaining loan balance paid at maturity. What is the total payment amount at t = 3, rounded to the nearest dollar?

Answers

The total payment amount at t=3 is $0.

To calculate the total payment amount at t=3, we first need to find the remaining loan balance at the end of t=2.

At t=1, you make two equal total payments of $3,000, so $6,000 is paid off the loan. The interest charged for the first year is 13% of the original loan amount, which is $1,820. Therefore, the remaining loan balance at the end of t=1 is:

$14,000 - $6,000 - $1,820 = $6,180

At t=2, you make two equal total payments of $3,000, so another $6,000 is paid off the loan. The interest charged for the second year is 13% of the remaining loan balance at the end of t=1, which is $801.40. Therefore, the remaining loan balance at the end of t=2 is:

$6,180 - $6,000 - $801.40 = $-621.40

Since the remaining balance is negative, it means that you have overpaid the loan and there is no payment required at t=3.

Therefore, the total payment amount at t=3 is $0.

Learn more about payment amount

https://brainly.com/question/30194873

#SPJ4

You find PBB Corp's 2.9% bonds at a price quote of ($)97.3 on the finra.org website. The bond pays semiannually and matures 6 months from now. How many the bond's YTM is _____%.

Answers

The bond's Yield To Maturity (YTM) is 3.91%.


To calculate the bond's YTM, we can use the bond pricing formula, which is:

[tex]PV = C / (1+r)^{(1/2)} + C / (1+r)^{(2/2)} + ... + C / (1+r)^{(n-1/2)} + FV / (1+r)^{(n/2)}[/tex]

where PV is the present value, r is the yield to maturity, n is the number of periods to maturity, C is the coupon payment, and FV is the face value of the bond.

Substituting the given values, we get:

[tex]97.3 = 2.9 / (1+r/2)^{(1/2)} + 2.9 / (1+r/2)^{(1)} + 100 / (1+r/2)^{(1)[/tex]

Simplifying the equation, we get:

[tex]0.029 / (1+r/2)^{(1/2)} + 0.029 / (1+r/2) + 100 / (1+r/2) = 97.3[/tex]

Using a financial calculator or a spreadsheet, we can find that the bond's YTM is 3.91%.

To know more about Yield To Maturity, refer here:
https://brainly.com/question/26376004#
#SPJ11

if you deposit $700 in an account today at 4 nnual interest rate, 8 years from today you will have __________ in your account.

Answers

If you deposit $700 in an account today at 4 % annual interest rate, 8 years from today you will have $952.35 in your account.

To calculate the future value of the deposit, we can use the formula for compound interest:

FV = PV x (1 + r)ⁿ

Where:

PV = Present Value (deposit amount) = $700

r = Annual Interest Rate = 4% or 0.04

n = Number of Years = 8

FV = Future Value

Plugging in the given values, we get:

FV = 700 x (1 + 0.04)⁸

FV = 700 x 1.3605

FV = $952.35 (rounded to the nearest cent)

Therefore, in 8 years, you will have $952.35 in your account, assuming the interest rate remains constant and the interest is compounded annually.

Learn more about compound interest :

https://brainly.com/question/13160996

#SPJ4

This is calculated using the formula A=P(1+r/n)^(nt), where A is the amount of money in the account after the specified time, P is the initial deposit, r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the number of years. Plugging in the values, we get A=700(1+0.04/1)^(1*8), which simplifies to A=700(1.04)^8, which equals $944.24.

If you deposit $700 in an account today at 4% annual interest rate, 8 years from today you will have approximately $944.24 in your account. The amount of interest charged or generated on a loan or investment over the course of a year is referred to as annual interest. It is often represented as a percentage of the whole borrowed or invested amount. For instance, if you borrowed $1,000 at a 5% annual interest rate, your debt at the end of the year would be $1,050. Similar to this, if you put $1,000 into an account with a 5% yearly interest rate, you would end up with $50 in interest. Compounding is the technique of gradually adding interest to a starting sum of money or investment.

Learn more about account here:

https://brainly.com/question/22917325

#SPJ11

Your parents will retire in 18 years. They currently have $390,000 saved, and they think they will need $2,200,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places._____%

Answers

Assuming your parents don't save any additional funds, they have 18 years to grow their savings from $390,000 to $2,200,000. Using the compound interest formula, we can calculate the annual interest rate they need to earn:
Final amount = Principal x (1 + interest rate)^time


$2,200,000 = $390,000 x (1 + interest rate)^18
Simplifying this equation, we get:
(1 + interest rate)^18 = 5.64103
Taking the 18th root of both sides, we get:
1 + interest rate = 1.12097
Subtracting 1 from both sides, we get:
interest rate = 0.12097
Multiplying by 100 to convert to a percentage, we get:
interest rate = 12.10%
Therefore, your parents must earn an annual interest rate of 12.10% to reach their retirement goal of $2,200,000 in 18 years, assuming they don't save any additional funds.
To solve this problem, we will use the formula for compound interest:
Future Value (FV) = Present Value (PV) * (1 + interest rate)^number of years
In this case, we have:
FV = $2,200,000 (the amount your parents need at retirement)
PV = $390,000 (the amount your parents currently have saved)
Number of years = 18 years (time left until retirement)
We want to find the annual interest rate. Let's denote the interest rate as r. Rearrange the formula to solve for r:
r = ((FV / PV)^(1/number of years)) - 1
Plug in the values:
r = ((2,200,000 / 390,000)^(1/18)) - 1
the result:
r = (5.64103^(1/18)) - 1
r ≈ 0.0867
To express the interest rate as a percentage, multiply by 100 and round to two decimal places:
Interest rate = 0.0867 * 100 ≈ 8.67%

For more such questions on funds

https://brainly.com/question/29837697

#SPJ11

What are IT managers usually required to judge

Answers

Answer:

IT managers are usually required to judge the effectiveness and efficiency of technology systems and solutions, their alignment with business goals, the feasibility of implementing new technologies, the security and privacy of data, the cost-benefit analysis of IT investments, and the management of IT staff and resources.

Explanation:

IT managers play a crucial role in organizations by overseeing the implementation and maintenance of technology systems that support business objectives. They are responsible for evaluating the performance and functionality of existing systems, assessing the need for new technologies, and ensuring the security and privacy of data. IT managers also need to have a deep understanding of the business needs and goals of their organization to ensure that technology investments are aligned with the overall strategy. In addition, they must manage a team of IT professionals, delegate tasks and responsibilities, and ensure that resources are being used efficiently. The ability to balance technical knowledge with managerial skills is critical for success as an IT manager.

Other Questions
a corporation that owns more than $10 million of total assets uses which schedule to reconcile book income to taxable income? At 20C a gas has a volume of 16.00 L. What will the volume be at 175.0 C? paula is able to effectively persuade and motivate employees and customers in many different cultures. ebook question content area problem 13-40 (lo. 4) since garnet corporation was formed five years ago, its stock has been held as follows: 525 shares by frank and 175 shares by grace. their basis in the stock is $350,000 for frank and $150,000 for grace. as part of a stock redemption, garnet redeems 125 of frank's shares for $175,000 and 125 of grace's shares for $175,000. question content area round any division to six decimal places. round your final answer to the nearest dollar. a. what are the tax consequences of the stock redemption to frank and grace? a stock sells for $21.38 a share and has a required return of 8 percent. dividends are paid annually and increase at a constant 3.5 percent per year. what is the amount of the last dividend paid? a. $0.59 b. $0.46 c. $0.63 d. $0.50 e. $0.93 Suppose the risk-free rate is 3.51% and an analyst assumes a market risk premium of 5.76%. Firm A just paid a dividend of $1.39 per share. The analyst estimates the of Firm A to be 1.31 and estimates the dividend growth rate to be 4.84% forever. Firm A has 258.00 million shares outstanding. Firm B just paid a dividend of $1.94 per share. The analyst estimates the of Firm B to be 0.79 and believes that dividends will grow at 2.50% forever. Firm B has 190.00 million shares outstanding. What is the value of Firm B? The melting of methane hydrates on the seafloor can lead to a sharp rise in global temperatures because methane is a powerful greenhouse gas (true or false) based on the wavelength that the cobalt(ii) chloride solution absorbed most strongly, what color light did the copper(ii) sulfate solution absorb most strongly? purple red orange green If L M3.5, what happens to the luminosity if we increase M by a factor of 5?A. Increases by factor 17.5B. decreases by factor of 17.5C. increases by factor 79D. increases by factor of 280E. decreases by factor of 79 sarah has $1000 and would like to invest it for 5 years. she is deciding between a high-yield bond with an interest rate of 3% annually or a mutual fund with an expected interest rate of 7% annually. which investment is considered riskier? group of answer choices the bond the mutual fund both are equally risky only stocks are risky, these are considered safe investments. 3. In a box of phones, 48 are apple phones out of 100. Give a reduced ratio of non-apple phones to apple phones. how to assume Tax Rate in financial Modeling? what Formula isused ? Thanks ! Construct the confidence interval for the population mean information cleansing or scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Sam is stacking cans of vegetables at the Store His shelf is 10 inches tall, 10 inches deep, and 50 inches wide The cans are 4 inches tall and each has a volume of 50 24 in How many cans will fit on the shelf? I need the answer I do not understand this problem buffer solution contains 0.15 mol of propionic acid (hc3h5o2) and 0.10 mol of sodium propionate (nac3h5o2) in 1.20 l of the solution. what is the ph of the buffer after the addition of 0.01 mol of naoh? which equation represents y as a function of x? 18. what do we mean when we say that two light rays striking a screen are in phase with each other? a) when the electric field due to one is a maximum, the electric field due to the other is also a maximum, and this relation is maintained as time passes. b) they are traveling at the same speed. c) they have the same wavelength. d) they alternately reinforce and cancel each other. Solve this proportion 12/m = 18/9