Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

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

Discuss:-

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

Short selling suppose that walmart is trading at 500 a

Short Selling Suppose that Walmart is trading at $500 a share and you believe that it is overpriced. Thus, you decide to short 1000 shares of Walmart. Your broker also requires you to post an initial 50% margin. 1. What ...

Argaiv towers has outstanding an issue of preferred stock

Argaiv Towers has outstanding an issue of preferred stock with a par value of $100. It pays an annual dividend equal to 8 percent of par value. If the required return on Argaiv preferred stock is 6 percent, and if Argaiv ...

Annual demand 160906 units carrying costs 319 per unit

Annual demand 160,906 units Carrying costs $3.19 per unit Fixed Costs per order $5.6 Number of orders 48 What are the total costs? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answe ...

A 7-year annuity of 14 8600 semiannual payments will begin

A 7-year annuity of 14 $8,600 semiannual payments will begin 9.5 years from now, with the first payment coming 10 years from now. If the discount rate is 10 percent compounded semiannually, what is the value of this annu ...

Madsen motorss bonds have 7 years remaining to maturity

Madsen Motors's bonds have 7 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9.5%; and the yield to maturity is 12%. What is the bond's current market pri ...

What is the difference between the following four

What is the difference between the following four charitable trusts? Give 1 example for each. Charitable Remainder Unitrusts, Charitable Remainder Annuity Trusts, Charitable Lead Trusts, and Pooled Income Funds

Your firm needs a machine which costs 240000 and requires

Your firm needs a machine which costs $240,000, and requires $39,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life categ ...

The restaurant chain applebees international inc ticker

The restaurant chain Applebee's International, Inc. (ticker symbol, APPB) announced an increase of their annual dividend from $0.20 to $0.22 per share in December 2006. This continued a long string of dividend increases. ...

1 if a company increases the amount of debt financing in

1. If a company increases the amount of debt financing in the companys capital structure, would the required return for equity holders change? Explain. 2. If a company plans to expand into deeper water that intails more ...

Stock xyz has a current price of 5 per share last month xyz

Stock XYZ has a current price of $5 per share. Last month XYZ traded for a low of $4, and two months ago the same stock traded for a high of $6. Suppose you sell one share of XYZ short today at $5. Which of the following ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen