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Can I get your help? I have included what I will need CH18 3. Changes in the Operating Cycle [LO1] Indicate the effect that the

Can I get your help? I have included what I will need

image text in transcribed CH18 3. Changes in the Operating Cycle [LO1] Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change: a. Average receivables goes up. I b. Credit repayment times for customers are increased. D c. Inventory turnover goes from 3 times to 6 times. I d. Payables turnover goes from 6 times to 11 times. I e. Receivables turnover goes from 7 times to 9 times. I f. Payments to suppliers are accelerated. D CH20 8. Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company's balance sheet amount in accounts receivable? Credit Terms Net 30 Past Due 4 Credit Sale 9.75 Accounts receivable (ADS) *(ACP) Average Daily Sales 9.75*10^6/365 ACP 30+4 Acc RCV 26712.33 908219.18 Et 30 4 days past et amount in account recievable CH21 4. Using Spot and Forward Exchange Rates [LO1] Suppose the spot exchange rate for the Canadian dollar is Can$1.09 and the six-month forward rate is Can$1.11. a. Which is worth more, a U.S. dollar or a Canadian dollar? b. Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$2.50? Why might the beer actually sell at a different price in the United States? c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? d. Which currency is expected to appreciate in value? e. Which country do you think has higher interest ratesthe United States or Canada? Explain. CH26 1. Calculating Synergy [LO3] Pearl, Inc., has offered $357 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $319 million as an independent operation. If the merger makes economicsense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger? 2. Balance Sheets for Mergers [LO2] Consider the following premerger information about Firm X and Firm Y: Answer in excel for 2 CH18 3. Changes in the Operating Cycle [LO1] Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change: a. Average receivables goes up. I b. Credit repayment times for customers are increased. I c. Inventory turnover goes from 3 times to 6 times. D d. Payables turnover goes from 6 times to 11 times. N e. Receivables turnover goes from 7 times to 9 times. D f. Payments to suppliers are accelerated. N CH20 8. Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company's balance sheet amount in accounts receivable? Credit Terms Net 30 Past Due 4 Credit Sale 9.75 Accounts receivable (ADS) *(ACP) Average Daily Sales 9.75*10^6/365 ACP 30+4 Acc RCV 26712.33 Accounts Receivables in Balance Sheet = $908219.18 Et 30 4 days past et amount in account recievable CH21 4. Using Spot and Forward Exchange Rates [LO1] Suppose the spot exchange rate for the Canadian dollar is Can$1.09 and the six-month forward rate is Can$1.11. a. Which is worth more, a U.S. dollar or a Canadian dollar? U.S. dollar is worth more. Exchange rate = 1 U.S. Dollar = 1.09 Canadian Dollar. That means 1 U.S. Dollar is able to purchase 1.09 Canadian dollars. So U.S. dollar is worth more. b. Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$2.50? Why might the beer actually sell at a different price in the United States? Cost of an Elkhead beer in US = 2.50 / 1.09 = US $2.29 Among the reasons that absolute PPP doesn't hold and there is different price of beer in United States are trade barriers and tariffs, transactions costs, taxes and different tastes. c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? US dollar's value is more in forward market as compared to spot market that means U.S. dollar selling at a premium. d. Which currency is expected to appreciate in value? US dollar is expected to appreciate in value. e. Which country do you think has higher interest ratesthe United States or Canada? Explain. Canada has higher interest rates than US. CH26 1. Calculating Synergy [LO3] Pearl, Inc., has offered $357 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $319 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger? Formula for calculating minimum estimated value of the synergistic benefits from the merger = Purchase Price - Market Value Purchase price offered by Pearl, Inc., = $357 million Market value of Jam Corporation = $319 million Minimum estimated value of the synergistic benefits = 357 - 319 = $38 million 2. Balance Sheets for Mergers [LO2] Consider the following premerger information about Firm X and Firm Y: CH18 3. Changes in the Operating Cycle [LO1] Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change: a. Average receivables goes up. I b. Credit repayment times for customers are increased. I c. Inventory turnover goes from 3 times to 6 times. D d. Payables turnover goes from 6 times to 11 times. N e. Receivables turnover goes from 7 times to 9 times. D f. Payments to suppliers are accelerated. N CH20 8. Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company's balance sheet amount in accounts receivable? Credit Terms Net 30 Past Due 4 Credit Sale 9.75 Accounts receivable (ADS) *(ACP) Average Daily Sales 9.75*10^6/365 ACP 30+4 Acc RCV 26712.33 Accounts Receivables in Balance Sheet = $908219.18 Et 30 4 days past et amount in account recievable CH21 4. Using Spot and Forward Exchange Rates [LO1] Suppose the spot exchange rate for the Canadian dollar is Can$1.09 and the six-month forward rate is Can$1.11. a. Which is worth more, a U.S. dollar or a Canadian dollar? U.S. dollar is worth more. Exchange rate = 1 U.S. Dollar = 1.09 Canadian Dollar. That means 1 U.S. Dollar is able to purchase 1.09 Canadian dollars. So U.S. dollar is worth more. b. Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$2.50? Why might the beer actually sell at a different price in the United States? Cost of an Elkhead beer in US = 2.50 / 1.09 = US $2.29 Among the reasons that absolute PPP doesn't hold and there is different price of beer in United States are trade barriers and tariffs, transactions costs, taxes and different tastes. c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? US dollar's value is more in forward market as compared to spot market that means U.S. dollar selling at a premium. d. Which currency is expected to appreciate in value? US dollar is expected to appreciate in value. e. Which country do you think has higher interest ratesthe United States or Canada? Explain. Canada has higher interest rates than US. CH26 1. Calculating Synergy [LO3] Pearl, Inc., has offered $357 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $319 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger? Formula for calculating minimum estimated value of the synergistic benefits from the merger = Purchase Price - Market Value Purchase price offered by Pearl, Inc., = $357 million Market value of Jam Corporation = $319 million Minimum estimated value of the synergistic benefits = 357 - 319 = $38 million 2. Balance Sheets for Mergers [LO2] Consider the following premerger information about Firm X and Firm Y

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