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As previously discussed, assume the most recent dividend was $3.90 and the dividend growth rate is 6%. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35%. What is the company’s WACC?
The catering manager of La Vista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.
For a small order ( 2,000 or fewer pieces), her vendor quotes a price of piece.
If she orders 2,001-5,000 pieces, the price drops to piece. pieces brings the price to piece, and 10,001 and above reduces the price to .
Lisa's order costs are per order, her annual holding costs are , and the annual demand is pieces. For the best option:
What is the annual ordering (setup) cost?
The Organic Soda Company reported the following comparative information at December 31, 2016, and December 31, 2015 (amounts in millions and adapted):
Calculate the following ratios for 2016 and 2015:
a. Current ratio
b. Debt ratio
During 2016, The Organic Soda Company issued $1,840 million of long-term debt that was used to retire short-term debt. What would the current ratio and debt ratio have been if this transaction had not been made?
The Organic Soda Company reports that its lease payments under operating leases will total$940 million in the future and $250 million will occur in the next year (2017). What would the current ratio and debt ratio have been in 2016 if these leases had been capitalized?