Ask Question, Ask an Expert


Ask Financial Management Expert

problem 1: The primary financial objective of corporation is usually taken to be the maximization of shareholder wealth.


i) Ways in which the shareholder of a company can encourage its managers to act in a way which is consistent with the objective of maximization of shareholder wealth.

ii) What other objectives may be important to a public limited company and whether such objectives are consistent with the primary objective of shareholder wealth maximization.

iii) What is the purpose or benefit of published financial statements for companies?

iv) Why the management of working capital is important for a business? 

problem 2: The 5Z Company is selling pens to the local market. It is planning to maximize sales and profit by analyzing few conditions using the break-even analysis formula. Below is the data provided for you to make the decision:
Fixed cost per annum        $70,000
Unit selling Price               $20
Unit Variable cost             $10
Existing Sales                   8,000 units
Relevant range of output    4,000 to 12,000 units
a) What is the output level at which 5Z Company Break even (that is makes neither a profit nor a loss)?

b) How many units must be sold to obtain $30,000 profit?

c) What is the profit that will result from a 10% reduction in variable costs and a $10,000 decrease in fixed costs, assuming that current sales can be maintained?

d) What is the selling price which would have to be charged to show a profit of $40,000 on sales of 8,000 units?

e) What additional sales volume is required to meet $8,000 extra fixed charge from a proposed plant expansion?

problem 3: Xcell engineering is planning to construct a futsal stadium which has 5 courts to be rented out at any point of time. Its initial cost of investment is RM$280,000. It is expected to generate sales of RM$20,000 per court for year one and a 10% increase for every year from year 2 to year 5. The operating cost for year one for per court is RM$7,000 and it also expected to  increase by 10% each year from year 2 to 5. At year 5 it can cease operation by selling the business to Mr.Free for RM$280,000. The cost of capital is 10%. Will you recommend this project to be financed by your company? Use NPV method to show your calculations.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9542

Have any Question? 

Related Questions in Financial Management

What operational and financial measures can a mnc take in

What operational and financial measures can a MNC take in order to minimize the political risk associated with a foreign investment project?

Florim is an albanian company specialized in manufacturing

Florim is an Albanian company specialized in manufacturing ceramic products. The company realizes its revenue by selling six products, as reported in given Table. Table : Annual revenue (in €) and amounts sold of the pro ...

The campbell company is considering adding a robotic paint

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,025,000.00, and it would cost another $33,800.00 to install it. The machine falls into the MACRS 3 ...

The city of detroit is deciding whether or not to build an

The city of Detroit is deciding whether or not to build an aquarium. Officials believe that a world-class stingray exhibit will attract families from across Michigan to visit the city. In turn, this will spur local busin ...

Financial ratios are essential to provide an accurate

Financial ratios are essential to provide an accurate valuation of a firm. Select a publicly traded firm of your choice. You may use the firm you have elected to profile for the course-long Financial Analysis and Proposa ...

In the blue wave electronics factory workers use diagnostic

In the Blue Wave Electronics factory, workers use diagnostic machinery to check that parts are up to certain standards. Workers are paid on the graduated piecework scale shown below for each hard drive that they check. I ...

From an international business law perspective what types

From an international business law perspective, what types of contracts are required for the stages below for starting a global children's clothing distribution business: Buy fabric in India; Ship the fabric from India t ...

Stock valuesnbspthe next dividend payment by dizzle inc

Stock Values  The next dividend payment by Dizzle, Inc., will be $2.90 per share. The dividends are anticipated to maintain a growth rate of 7.75 percent, forever. Assume the stock currently sells for $49.40 per share. W ...

What is the macaulay duration of a 56 percent coupon bond

What is the Macaulay duration of a 5.6 percent coupon bond with ten years to maturity and a current price of $1,057.70? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 deci ...

You are thinking about buying a savings bond the bond costs

You are thinking about buying a savings bond. The bond costs ?$59 today and will mature in 7 years with a value of $118. What annual interest rate will the bond? earn? The bond will earn an annual rate of __% ( round to ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro