BUSINESS COLLEGE

Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated with a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted averageWhat does P/E Ratio of a 10 indicate?
a. ​It would take 10 years for an investor to recover his or her initial investment
b. ​The firm will pay a dividend of $10 per share.
c. ​The value of the stock will be 10 times the initial investment at the time of maturity.
d. ​An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation

Answers

Answer 1
Answer:

Answer:

1. Measure of the percentage change in earnings before interest and tax or operating cash flow:

B) Degree of operating leverage

2. P/E Ratio of 10 indicates that:

c. ​The value of the stock will be 10 times the initial investment at the time of maturity.

Explanation:

Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue.  With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income.  There are many ways to measure a company's degree of operating leverage.  One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.

Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share.  It is used to evaluate the value of the company's stock.  It points out whether the company's stock is undervalued, overvalued, or correctly valued.

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Ed, a businessperson, is a friend of Fran, the owner of a Percolated Coffee & Baked Goods store. Every day, Ed spends five minutes in Fran’s store, looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon, Ed goes into the store, looks at the items, and picks up a $1 chocolate brownie. Ed waves the brownie at Fran without saying a word and walks out. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?
you recently increased you're spending on marketing by 10%. you now spend 5500 per month. revenue increase by 1000 per month and you're gross margin percentage is 70%. All other expenses stayed consant. Did the increase pay off?
A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Chester's Annual Report. The direct labor costs for Chester were $32,680. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Chester that led to such savings?
Jordan has the following assets and liabilities:_______. Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans $3,000 Checking account balance $2,000 Credit card balance $1,000 What is Jordan’s wealth?a. $107,000b. $213,000c. $109,000d. $111,000
Selected transactions for M. Coronado, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $11,700 cash in business. 3 Purchased used car for $3,510 cash for use in business. 9 Purchased supplies on account for $585. 11 Billed customers $2,808 for services performed. 16 Paid $410 cash for advertising. 20 Received $819 cash from customers billed on January 11. 23 Paid creditor $351 cash on balance owed. 28 Withdrew $1,170 cash for personal use by owner.1. Journalize the above transactions. Date Account Titles and Explanation Debit CreditJan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28

You are asked to lend money for a major commercial real estate development in a foreign country. There is some talk about a further devaluation of the foreign country's currency. What information do you need to assess the creditworthiness of this project? In your evaluation of the project, be sure to take into account translation exposure and economic exposure (operating and transaction), as well as exchange risk.

Answers

Answer:

Please see explanation below

Explanation:

Before Investment for the real estate development in a foreign country, it is very crucial to determine the viability of the project, and more importantly how the cash flows are being populated over the period. One of the major risks involved in investing in foreign country is the currency exchange risk. The value of currencies for the countries continue to fluctuate based on several economic conditions and other macro factors.

If a regulator in a foreign country is devaluing the country’s currency, then it goes in favour of exporters, as the foreign consumers can afford to buy more goods and services with the same amount. However, the people residing in the the country(importers) faces a huge trouble spending in foreign country due to currency devaluation.

To identify the creditworthiness of the project we need information regarding the property prices, its growth, and public spending in the country where we want to make our investment. Secondly, we need the historical data of currency devaluation event (if any) to assess the actual impact it will have on the economy once the devaluation takes place. Thirdly, we need to identify the exposures or the risk involved in operating the business in the foreign country, and how are we go about mitigating the risk from transaction and operating exposure.

Your boss at Xiangling Hu Products, Inc., has just provided you with the schedule and lead times for the bracket in Problem 3. The unit is to be prepared in week 10. The lead times for the components are bracket (1 week), base (1 week), spring (1 week), clamp (1 week), housing (2 weeks), handle (1 week), casting (3 weeks), bearing (1 week), and shaft (1 week).a) Prepare the time-phased product structure for the bracket.
b) In what week do you need to start the castings?

Answers

Answer:

Explanation:

A) The time-phased product structure for the bracket is attached as a document.

B) The casting will start on week 5 and week 9.

There are three categories of cash flows: single cash flows, also referred to as "lump sums," a stream of unequal cash flows, and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. Ordinary annuities make fixed payments at the end of each period for a certain time period. An annuity due is an annuity that makes a payment at the end of each period for a certain time period. An annuity due earns more interest than an ordinary annuity of equal time. A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity.

Answers

Answer:

All statement are correct except the the second one.

Explanation:

  • Ordinary annuities make fixed payments at the end of each period for a certain time period.

True. the differentiating feature between ordinary annuities and annuity dues is the timing of the cash-flows- If payments are made at the end of each period, the payment stream is an ordinary annuity but if payments are made at the beginning of each period, then the stream is an annuity due.

  • An annuity due is an annuity that makes a payment at the end of each period for a certain time period.

False. with an annuity due, payments are made at the beginning of each period.

  • An annuity due earns more interest than an ordinary annuity of equal time.

True. Payments are made sooner in an annuity due, with the 1st payment made at the beginning of the first period and the last payment being made at the beginning of the last period. Thus each payment earns interest and as a result, both the present value and the future value are higher than that of an ordinary annuity.

A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity.

True. A perpetuity is a stream of cash-flows starting at a certain date with equal payments at equal intervals but with no terminal date. Therefore the stream of cash-flows is expected to continue forever- which makes it an infinite annuity.

Rapid prototyping could be an advantageous methodology for developing innovative computer-based instruction. Software engineers have been successful in designing applications by using rapid prototyping. So it also could be an efficient way to do instructional design.

Answers

Answer:

Yes Rapid prototyping can be an efficient way to do instructional design. Rapid prototyping is an instructional design approach which combines design, developmental and evaluation process. it is also a non-linear approach.

Explanation:

As a non linear approach, Rapid prototyping produces a sample working model that is a scaled-down representative version of the whole course. Rapid prototyping can be seen as an alternate approach to the traditional instructional design.

Instructional design is defined as the systematic approach to the development of instruction through the use of analysis, design, development, implementation and Evaluation. Designers can make use of Rapid prototyping or rapid instructional design when they face these factores; Time, budget and Environmental restraints.

Rapid prototyping is a very practical model for blended learning development, especially when only one person is involved. Rapid prototyping allows for learning as even the instructional designer is learning too.

Imagine you are reviewing a business plan. In which section of the business plan would you expect to find the answers to the following questions?Question Financial Statements Marketing & Sales Management Service or Product Line
How much money will the owners invest in the business start-up?
How will the salespeople for this business be compensated?
What are the unique features of this business’s merchandise?

Answers

Answer:

Hence,

The money which the owners invest in the business start-up is by Financial statements.

The salespeople for this business be compensated is by Marketing & sales management.

The unique features of this business’s merchandise are by Service or product line.

Explanation:

Financial statements show how much money will the owners invest in the business start-up.

Marketing & sales management shows how will the salespeople for this business be compensated.

Service or product line shows What are the unique features of this business’s merchandise

In a business plan, the 'Financial Statements' section provides information about the owner's start-up investment, compensation of salespeople is detailed in the 'Marketing & Sales Management' section, and unique merchandise features could be found in the 'Service or Product Line' section.

In a business plan, you would typically find the answers to your questions in the following sections:

  • The amount of money that the owners will invest in the business start-up would typically be found in the Financial Statements section. This part of the business plan provides a detailed view of the business’s financial forecasts, including equity investment from owners.
  • Information about how salespeople for the business will be compensated can be found in the Marketing & Sales Management section. This usually outlines the business's sales strategies, including employee compensation models.
  • The unique features of a business's merchandise would be detailed in the Service or Product Line section. This illustrates what the business plans to sell, highlighting unique selling points and differentiators that make its products or services unique.

Learn more about Business Plan here:

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Alpine Corporation reported the following information for fiscal 2017 and 2016. December 31 2017 2016
Operating assets $164,101 $153,211
Operating liabilities 120,785 114,836
Net cash flow from operations 46,709 39,540
Net operating profit after tax (NOPAT) 33,371 31,742
Discount factor 6.0% 6.0%

What are the company's free cash flows to the firm (FCFF) for 2017?

A. $28,430
B. $24,638
C. $28,907
D. $25,797
E. None of the above

Answers

Answer:

Option (A) is correct.

Explanation:

Net Operating assets in 2017:

= Operating assets - Operating liabilities

= $164,101 - $120,785

= $43,316

Net Operating assets in 2016:

= Operating assets - Operating liabilities

= $153,211 - $114,836

= $38,375

Increase in net operating assets:

= $43,316 - $38,375

= $4,941

Company's free cash flows to the firm (FCFF) for 2017:

= Net operating profit after tax 2017 - Increase in net operating assets

= $33,371 - $4,941

= $28,430
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