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can you do these Qs? if so I need help to do it . I need it to day 1- Ingle Company manufactures and sells
can you do these Qs? if so I need help to do it . I need it to day
1- Ingle Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable cost per year: Direct Materials $18 Direct labor $7 Variable manufacturing overhead $2 Variable selling and administrative $5 Fixed cost per year: Fixed manufacturing overhead $160,000 Fixed selling and administrative $110,000 During the year, the company produced 20,000 Units and sold 16,000 units. The selling price of the company's product is $50 per unit. Assume Ingle Company uses the absorption costing method. Compute the unit product cost and prepare an income statement for the year. Assume Ingle Company uses the variable costing method. Compute the unit product cost and prepare a contribution format income statement for the year. Explain (specifically) why the two methods on the previous page yield different net incomes. Be sure to use numbers relating to this problem. 2- if you compared histograms of large company stock versus small company stock (where the histograms were constructed such that each calendar hour's annual return is a data point), what two difference would you observe? 3-the historical P/E ratio for publicly traded stock is around 15. Why is it that when you will sell your optometry practice (or insurance office) that you might only receive 3 times earning? 4- why do you compare capital budgeting project to the weighted average cost of capital instead of the cost of the method of financing used for the specific project? 5- most finance textbooks say that investors should diversify because the will not be compensated for diversifiable risk. This may wrongly imply that the market has a formal (automatic) reward system for risk. a- How do investors \"demand\" to be compensated for risk? b- Why aren't investors compensated for diversifiable(unsystematic) risk? 5- at thanksgiving dinner your cousin commented that he was a smart investor, he was fully diversified, and he intended to get rich by investing in the stock market. Based on your cousin's statement, what simple advice/comment would you offerStep by Step Solution
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