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

Crawfish kitchen inc is planning to invest in one of three

Crawfish Kitchen Inc. is planning to invest in one of three mutually exclusive projects. Projected cash flows for these ventures are as follows: Which project is the most profitable according to the NPV Criteria if the d ...

Consider the single factor apt portfolio a has a beta of 02

Consider the single factor APT. Portfolio A has a beta of 0.2 and an expected return of 13%. Portfolio B has a beta of 0.4 and an expected return of 15%. The risk-free rate of return is 10%. If you wanted to take advanta ...

Instructionsbulluse microsoft word 2010 in formulating your

Instructions •Use Microsoft word 2010 in formulating your answers. •Write brief answers, with no more than 100 words per answer, avoid long or general answers. •Write the answers in your language and avoid copying from t ...

Smith and jones inc is primarily engaged in the worldwide

Smith and Jones, Inc. is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. The following information is from its 2011 annual report: Required a. Based on these data, ...

Robert deposits 147500 in an account on april 1 2019 which

Robert deposits $1475.00 in an account on April 1, 2019 which earns 7.5% compounded quarterly. How much is in the account on September 15, 2024 if simple interest is allowed for part of a conversion period?

1 all of the following are advantages of direct ownership

1. All of the following are advantages of direct ownership of property as a way of investing in real estate except: Investor retains control over management. There is often a "pride of ownership" factor. There is still s ...

Two firms are ordered by the federal government to reduce

Two firms are ordered by the federal government to reduce their pollution levels. Firm A’s marginal costs associated with pollution reduction is MC = 150 + 3Q. Firm B’s marginal costs associated with pollution reduction ...

In september 2009 wells fargo indicated that it wanted to

In September 2009, Wells Fargo indicated that it wanted to pay back $25 billion it had received under the Capital Purchase Program. John Stumpf, Wells Fargo's CEO, was quoted as saying: "We will pay back. . . . We are no ...

Under the assumptions of modigliani and miller a firmrsquos

Under the assumptions of Modigliani and Miller, a firm’s average discount rate does not depend on the fraction of its financing that it raises from debt holders vs. equity holders. True or False? Why?

Abc inc is ecpected to pay anual dividend of 85 and 125 and

ABC Inc. is ecpected to pay anual dividend of .85$ and 1.25$ and 1.75$ a share over the next three years, respectively. after that, the divdend is expected to increase by 1% anually what is 1 share of stock worth today i ...

  • 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