Smart Answers Generic selectors Exact matches only Exact matches only Search in title Search in title Search in content Search in content Search in excerpt Search in posts Search in posts Search in pages Search in pages Kiri king Corp of Indonesia has regional division with headqueaters in Kuala Lumpur and Ipoh. Selected data on the two divisions follow: Read More Stephani Anthony is a divisional manager for Braden company. Her annual pay raises are lergely determined by her divisions’ return on investment (ROI), which has been above 18% each of the last three years. Stepahni is considering capital budegeting project that would require a $6,000,000 investment in equipment whit a useful like of four years and no salvage value. Bradlen Compan’s discount rate is 12%. The project would provide net operating income each yaer for five years as follows: Read More The Management of Sonate Company, a wholesale distribution of fashion product, is considering the purchase of a 72,000 machine that would reduce operating costs in its warehouse by 16,000 per year. At the end of the machines 5-year useful life, it will have no scrape value. the company’s required rate of return is 5%Required(ignore income taxes)1.determine the net present value of the investment in the machine. 2. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? Read More Fill in the missing amounts in each of the four case situations below. Each case is independent of the others. (Hint: one way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items) Read More Stepman Corporation has a single product whose selling price is $ 200 and whose variable expense is $150 per unit. The company’s monthly fixed expense is $75,000 1. Calculate the unit sales to attain a target profit of $9000 2. Calculate the dollar sales needed to attain a target profit of $10,000 Read More Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.02% (annual coupon payments) and a face value of $1,000. Andrew believes it can get a rating of A from Standard & Poor’s. However, due to recent financial difficulties at the company, Standard & Poor’s is warning that it may downgrade Andrew Industries’ bonds to BBB. Yields on A-rated, long-term bonds are currently 6.46%, and yields on BBB-rated bonds are 6.89%. a. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue?b. What will be the price of the bond if it is downgraded? Read More You have purchased a 9% coupon bond for $1,020. What will happen to the bond’s price if market interest rates rise? Read More Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.7% (annual payments). The yield to maturity on this bond when it was issued was 5.6%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? Read More What is the IRR for a $925 investment that returns $215 at the end of each of the next 6 years?(Perform all calculations using 5 significant figures and round your answer to two decimal places): Read More What is the IRR for a $1,000 investment that returns $175 at the end of each of the next 7 years? (Perform all calculations using 5 significant figures and round your answer to two decimal places) Read More