Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

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

Discuss:

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

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

c) What is the aim or benefit of published financial statements for companies?

d) Why the management of working capital is significant for a business?

problem 2: The 5Z Company is selling pens to the local market. It is planning to maximize the sales and profit by analyzing few conditions by using the break-even analysis formula. Below is the data given 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) Find out the output level at which 5Z Company Break even (that is makes neither a gain nor a loss)?

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

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

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

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

problem 3: Xcell engineering is planning to construct a futsal stadium that 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 produce sales of RM$20,000 per court for year one and a 10% raise for every year from year 2 to year 5. The operating cost for year one for per court is RM$7,000 and it as well 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 suggest this project to be financed by your company? Use NPV technique to show your computations.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9898

Have any Question? 


Related Questions in Financial Management

Hyacinth macaw invests 56 of her funds in stock i and the

Hyacinth Macaw invests 56% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 18%, and on J it is 25%. (Use decimals, not percents, in your calculations.) a. Calculate the varia ...

Starting one month from now you need to withdraw 200 per

Starting one month from? now, you need to withdraw ?$ 200 per month from your bank account to help cover the costs of your university education. You will continue the monthly withdrawals for the next four years. If the a ...

1 identify and define three versions of put-call parity2

1. Identify and define three versions of put-call parity. 2. Using the Black-Scholes-Merton option pricing model and the generic carry formula for forward contracts (using continuous compounding), demonstrate that C e (S ...

Collingwood homes has a bond issue outstanding that pays an

Collingwood Homes has a bond issue outstanding that pays an 8.5 percent coupon and matures in 16.5 years. The bonds have a par value of $1,000 and a market price of $944.30. Interest is paid semiannually. What is the yie ...

Letrsquos say that accounting regulations changed and gave

Let’s say that accounting regulations changed and gave firms a choice about how they could record interest on convertible bonds. You can either: Record an interest expense that reflects the coupon rate paid (1.25% in Tes ...

State your portfolio objectives then construct a 10-stock

State your portfolio objectives. Then construct a 10-stock portfolio that you feel is consistent with your objectives. (Use companies that have been public for at least 5 years.) Obtain annual dividend and price date for ...

Consider a project with the following data accounting

Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity = 5,000 units; life = eight years; fixed costs = $140,000; variable costs = $22 per unit; required return ...

An investment gives you 200 at the end of year 1 a loss of

An investment gives you $200 at the end of year 1, a loss of -$1,000 at the end of year 2, and a gain of $870 at the end of year 3. What is the present value of the cash flows if comparable investments earn 7% annually? ...

Dma corporation has bonds on the market with 145 years to

DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $965. The bonds make semiannual payments. What must the coupon rate be on these bon ...

Briefly discuss the terms and concepts presented below

Briefly discuss the terms and concepts presented below within the space provided or on a separate sheet attached to this exam. Please read each term carefully and provide a brief explanation of your understanding of the ...

  • 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