...discounted cash flow model to find P&S’s current equity value (rounded to the nearest million dollars). You Answered Correct Answer 5676 margin of error +/- 2 Question 2 Swamp & Sand Industries has the following data. The discount rate is 12%. Terminal value is 3 times FCF. Cash and debt are constant. Calculate its Enterprise Value. | 20X1 | 20X2 | 20X3 | Free Cash Flow | 1933 | 1933 | 1933 | Cash | 147 | 147 | 147 | Debt | 435 | 435 | 435 | You Answered Correct Answer 8762.3 margin of error +/- 3 Enterprise Value is the discounted value of FCF and Terminal Value. At 12% 3 yrs, the PVA1 = 2.4 At 12% 3 yrs, the DF = .71 So FCF *2.4 + TV*.71 = Enterprise Value. To find the PVA1 (the present value of a $1 annuity): 1=P/YR 3=N 12=I/YR 1=PMT 0=FV PV=2.4 To find the discount factor: 1=P/YR 3=N 12=I/YR 0=PMT 1=FV PV=.71 Question 3 An analyst is valuing Palm and Sun Industries for a possible acquisition. The buyer wants cash flows evaluated for 20 years a terminal value $50 M. Ignore taxes. Annual cash flow from continuing operations $ 1115 M. Annual cash flow from product line expansion $239 M. Annual cash flow from tax savings $ 40 M. Use these discount rates. Cost of Equity 15% Cost of Debt 6% Calculate the APV. You Answered Correct Answer 8938 margin of error +/- 5 Question 4 Given the following data from Swamp & Sand Industries, calculate the FCF. The tax rate is 30%. Sales | 10754 |...
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...Abstract ................................................................................................................................................. 3 Problem Area ....................................................................................................................................... 4 1. 2. Error and sampling .................................................................................................................. 4 Cost of Sampling ..................................................................................................................... 5 Introduction and Hypothesis ............................................................................................................. 6 Causal Relations ................................................................................................................................... 8 Literature Review .............................................................................................................................. 10 Illusory Superiority ........................................................................................................................ 10 Sampling Error and Estimation .................................................................................................. 12 Research Problem............................................................................................................................. 15 Research Objective ..................................
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...Background Information: In this lab, the different positions of a battery powered toy car moving in one direction over time (Velocity) was measured and recorded. Time and distance were the two physical quantities measured in this lab. A stopwatch and a meter stick were used to measure the distance the toy car travelled in a specific amount of time. Once the data points were collected and plotted, the relationship between the points was found using a line of best fit, which was in the form of y=mx+b. Experimental Design: The purpose of this lab was to determine the equation relating the position to time of a moving battery powered car. The independent variable was the time (measured in seconds, with a stopwatch) throughout which the toy car travelled and the dependent variable was the how far (measured in meters, with a meter stick) the toy car travelled (its position). The toy car remained constant throughout the experiment. The hypothesis was that as the time increases, the toy car will continue to move forward at a constant velocity linearly. Methods: The lab was carried out in a fairly wide area so the car could have enough room to move and so that the lab members and other members of the classroom would not step on the toy car or trip over it, both of which could result in injuries. After a long and wide enough area was cleared to carry out the lab, team members were assigned tasks to do during the lab; these tasks included a timer, a car starter, and two people who...
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...16 adult males will exceed 2900 lbs? Hint: This is the same as calculating the probability that the average weight for a random sample of 16 exceeds 2900/16. (b) Will the probability calculated above apply if 16 members from the Blue Hens football team were to get onto the same elevator? Why or why not? (c) 95% of average weights in a random sample of 16 adult males will exceed _______ ? ==================================================== Problem 2 The adult male height follows the normal distribution with a mean of 70 inches, and a standard deviation of 4 inches. (a) What is the probability that an individual male selected at random is more than 74 inches tall? (b) What is the probability that the average height for a group of 4 randomly selected males exceeds 74 inches? (c) Why are the answers to parts (a) and (b) different? How large of a random sample would we need to reduce the standard error to 0.25 inches? Problem 3 Historical data suggests that the proportion of left handed people is between 7 to 10%. We decide to take a random sample of people to confirm this. (a) How large would our sample have to be, so that the standard error would be no larger than 1% assuming that the true proportion of left handed people in the general population is 7%? (b) How large would our sample have to be, so that the standard error would be no larger than 1% assuming that the true proportion of left...
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...Competition Bikes (CB) is making CarbonLite and Titanium bikes. To streamline cost there need to be an investigation into which practice is most efficient and cost effective for the CB. Competition Bikes is using a traditional based costing (TBC). There needs to be a comparison between the current use of TBC and activity based costing (ABC) to decide which is most beneficial to the company. Also, the breakeven point to cost volume profit needs to be evaluated. There is a potential for a $50,000 increase in production and a 10% material cost increase. A1 Costing Method Traditional Based Costing is, “The allocation of manufacturing overhead (indirect manufacturing costs) to products on the basis of a volume metric such as direct labor hours or production machine hours.” (Traditional Costing, 2014) As manufacturing relies more on the combination of manpower and technology and the use of TBC will become more inaccurate. It will not be able to depict the true root cause for manufacturing overhead. The activity based costing (ACT) is a more reliable method of determining actual cost to produce a product. This method looks at the cost of each activity. Then it attaches a financial cost to that activity. Although ABC can be complicated to calculate it is flexible and helps companies determine more accurate budgets and true costs of producing products. The ABC method does not directly make changes to the cost of producing the product. What it does do is take into account the overhead...
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... and profits. Thorough analysis of financial statements help the company understand the mechanics of the systems that make up business operation. 2. Interpreting Financial Ratios: Financial ratios help the company identify and compare relationships across financial – statement line item. The comparison of ratios provides diagnostic tools for assessing the health of the various systems in the company. * Growth Rates: Growth rates capture the year – on – year percentage change in a particular line item Growth rates sales = (sales in this year – sales in previous years) / sales in previous years * Margins: Margin ratios capture the percentage of revenue accounted for by profit or the percentage of revenue not consumed by business costs. Gross margin = Gross Profit / Total revenue Operating margin = Operating profit / Total revenue Net Profit margin = Net income / Total revenue * Turnover: Turnover ratios measure the productivity, or efficiency, of business assets. The turnover ratio is considered by dividing a related measure of volume from the income statement by a measure of investment from the balance sheet. Productivity or efficient assets produce high levels of asset turnover. Receivable turnover = Total revenue / Account receivable Inventory turnover = Cost of goods sold / Inventory PPE turnover = Total revenue / Net property, plant, equipment Asset turnover = Total revenue / Total assets Total capital turnover = Total revenue / Total capital ...
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...Competition Bikes (CB) is making CarbonLite and Titanium bikes. To streamline cost there need to be an investigation into which practice is most efficient and cost effective for the CB. Competition Bikes is using a traditional based costing (TBC). There needs to be a comparison between the current use of TBC and activity based costing (ABC) to decide which is most beneficial to the company. Also, the breakeven point to cost volume profit needs to be evaluated. There is a potential for a $50,000 increase in production and a 10% material cost increase. A1 Costing Method Traditional Based Costing is, “The allocation of manufacturing overhead (indirect manufacturing costs) to products on the basis of a volume metric such as direct labor hours or production machine hours.” (Traditional Costing, 2014) As manufacturing relies more on the combination of manpower and technology and the use of TBC will become more inaccurate. It will not be able to depict the true root cause for manufacturing overhead. The activity based costing (ACT) is a more reliable method of determining actual cost to produce a product. This method looks at the cost of each activity. Then it attaches a financial cost to that activity. Although ABC can be complicated to calculate it is flexible and helps companies determine more accurate budgets and true costs of producing products. The ABC method does not directly make changes to the cost of producing the product. What it does do is take into account the overhead...
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...Operating Leverage What Does Operating Leverage Mean? A measurement of the degree to which a firm or project incurs a combination of fixed and variable costs. (1) A business thathas limited sales, with each sale providing a very high gross margin, is said to be highly leveraged. A business that makesmany sales, with each sale contributing a very low margin, is said to be less leveraged. As the volume of sales in a businessincreases, each new sale contributes less to fixed costs and more to profitability. (2) A business that has a higher proportion offixed costs and a lower proportion of variable costs is said to use more operating leverage. Conversely, businesses with lowerfixed costs and higher variable costs are said to employ less operating leverage. Investopedia explains Operating Leverage The higher the degree of operating leverage, the greater the potential danger for inaccurately forecasting risk. That is, if arelatively small error is made in forecasting sales, it can be magnified into large errors in projections of cash flow. The oppositeis true for businesses that are less leveraged. A business that sells millions of products a year, with each contributing slightlyto paying for fixed costs, is not as dependent on each individual sale. For example, convenience stores are significantly lessleveraged than are high-end car dealershipsoperating leverage The extent to which fixed operating costs magnify changes in sales or revenues into even greater proportionate changesin operating income...
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...ACCT 301 Final Examination Answers – UMUC Follow Below Link to Download Tutorial https://homeworklance.com/downloads/acct-301-final-examination-answers-umuc/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com (Multiple Choice) On April 1, 20X6, Ratchford Industries issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on October 1 and April 1. The entry to record issuance of the bonds includes: A. a debit to Cash of $500,000. B. a credit to Bonds Payable of $503,000. C. a debit to Premium on Bonds Payable of $15,000. D. All of the above. E. None of these. (Multiple Choice) When interest income on a bond investment is less than the cash received: A. the Investment in Bond account is credited. B. the bond was likely purchased at a premium. C. Interest Income is credited. D. All of these. E. None of these. 1. (Multiple Choice) Stringer Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. The entry to record this transaction includes a: A. debit to Cash for $10,000. B. debit to Paid-in Capital in Excess of Par for $27,500. C. debit to Common Stock for $10,000. D. credit to Gain on Stock $37,500. E. None of these. 2. 3. (True or False) The presence of goodwill in a balance sheet suggests that accounts of the subsidiary have...
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...Week 5 Individual Assignment Tips: Part 1: • Determine which project might be implemented and why (e.g. feasibility study, breakeven analysis, etc.). Project Selection Criteria: Build a table with each project as a column heading • Completion Time • Cost ROI Approach: ROI (%) = Net Benefit / Project Cost 1- Approach Elements: Project Cost ROI in $ (Project Total in $) ROI in % on Specified Period= ROI in $ / Project Cost Net Benefit = ROI (%) – Project Cost Project Earnings on Specified Period = ROI (%) * Project Cost (Net Benefit) + Project Cost • Determine the Break-even point for each • List project life • Analyze each project elements and decide which will be best Part 2: • Describe the five phases of a project (for the project you select) Part 3: • Describe the key deliverables associated with the selected project(s). • The key deliverables (project completion date and cost) for each project (see Cost and Completion time above). See the article below – It is very instructive: Ask the Expert: The Topic – Six Sigma and Return on Investment John Lopez-Ona February 26, 2010 1 John Lopez-Ona President Six Sigma Qualtec Princeton, New Jersey, USA Q: Why do you think people hear stories about companies failing to achieve adequate return on their Six Sigma investment? A: We hear stories about these failures because they occur. The question is why do they occur? One significant reason a program doesn’t achieve targeted returns is a lack of senior...
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...order. The case then introduces a series of sales possibilities that are accepted or declined based essentially on these decision rules. However, a young file clerk decided to take an under-bid proposal at $5.50 for an order of 100 units of Great Heath based upon her own assumption that such a volume order would be profitable. A subsequent sales-cost report was developed by Lee High showing cost per unit based upon his predetermined analysis of costs and including profit per unit. Data showed the file clerk’s order generated a subsequent loss because the price per unit was so low. Based upon this data, Blackheath then fired the clerk for this error and readjusted the per unit price to $8.00 to generate a higher profit. POINT OF VIEW Lee High had made calculations based upon a static volume of sales and production. He was also calculating only the cost of goods sold...
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...CALIPER AND MICROMETER CALIPER A. L. P. Libera, N. C. Lindog, A. D. T. Manlagnit, M. L. C. G. Marasigan, J. F. R. Marquez, J. M. M. Mendones College of Engineering, Adamson University Abstract THIS LABORATORY REPORT PRESENTS THE ACCURACY OF MEASUREMENTS USING THE CALIPER. THE MAIN OBJECTIVE OF THIS LABORATORY ACTIVITY WAS TO BE ABLE FOR THE STUDENTS TO FAMILIARIZE ON HOW TO USE THE CALIPERS AS INSTRUMENTS FOR MEASURING PURPOSES. ANOTHER PURPOSE OF THIS EXPERIMENT IS TO RETAIN OR MINIMIZE THE PERCENTAGE ERROR AND PERCENTAGE DIFFERENCE OF THE PREVIOUS ACTIVITY TO SHOW THAT INSTRUMENTS USED FOR MEASURING ARE MORE ACCURATE. 1. INTRODUCTION The goal of physics is to provide an understanding of nature. The science of physics was developed to explain our physical environment. In no subject does measurement play as important a role as in science. Real science cannot exist without measurement. Calculating accuracy reveals how close a set of measurements are to an accepted reference or true value. This differs from precision, which describes how close the measurements are to each other. Determining the accuracy of a measurement usually requires calibration of the analytical method with a known standard. Accuracy in measuring is knowing the smallest reading that can be accurately measured while using an instrument or a device. The two common instruments used in measuring that increase the accuracy are the vernier caliper and the micrometer...
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...lowering the possibility of a systematical error. After so the survey beings, using the equipment loaned from the School of Archaeology and Ancient History at the University of Leicester, where the Authors came from, they began to analyze the 11 sites. The accuracy of the deduced orientation of an alignment of measured points depends upon several factors, in particular: their distance from the survey station, the number of points from which a best fit can be determined, and the angle between the alignment and the line of sight from the survey station. Measuring of the foundation, four sides, four corner marks, and casing foundation showed significantly incredible results. The results were very slightly off of what was expected. The Best-fit azimuth was set as 90 degrees 60 degrees and 360 degrees 60 degrees. The results did where not far from these expected answer, but by only an extremely small margin. This result was not only for on pyramid, but it was also for the other structures which was an incredible result to the authors. This indicated that the Egyptians had great knowledge of geography and astronomy to be able to place such massive structures with no equipment to help them position and orient the structure. The paper then goes on to share results of pyramids and structures that are before the Giza pyramids and structures. These results are different than the precision of the Giza Structures. They have large margins of error and are not as acutely places with the compass...
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...Strategic Analysis and Recommendations for Jot Contents SWOT ANALYSIS ............................................................................................................................................ 4 STRENGTHS ................................................................................................ Error! Bookmark not defined. WEAKNESS ................................................................................................. Error! Bookmark not defined. THREATS ..................................................................................................... Error! Bookmark not defined. Opportunities ............................................................................................. Error! Bookmark not defined. FINANCIAL ANALYSIS ..................................................................................................................................... 7 Current Ratios ........................................................................................................................................... 7 Quick ratio:................................................................................................................................................ 7 Net working Capital................................................................................................................................... 7 Debt Ratio: ......................................................................................................
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...Methodology Report for the Modular Grants Application Process Outcome Evaluation Study 1. Introduction This report describes the research methodology used for the Modular Grants Application Process Outcome Study. More specifically, this paper is divided into three sections that describe the sampling, data collection, and response rates for the five stakeholder groups involved in the outcome study. The five stakeholder groups are: 1) principal investigators, 2) peer reviewers, 3) NIH scientific review administrators, 4) NIH program and grants management staff, and institutional officials. The first section includes information on the size and origin of the sampling frames (population files), the sample sizes, sampling methods, and margins of error (confidence intervals) around the population estimates. The second section describes the data collection procedures and the last section provides the study response rates and calculations. 2. Sampling 1. Population The size and origin of each of the sampling frames, or population files, is described in detail below. 1. Principal Investigators In March 2004, NIH provided Westat with a population file that consisted of all people who had applied for a modular grant since its inception in June 1999. The population file contained a flag indicating whether or not the individual had ever been awarded a modular grant. The file also contained the principal investigators’ mailing address, telephone number, and email address...
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