Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide answers to the following questions. Please write the formula of each question along with what numbers to plug in the formula and please

Please provide answers to the following questions. Please write the formula of each question along with what numbers to plug in the formula and please use excel.

1.) Suppose one of the suppliers to the Baylor Scott & White Health System offers terms of 4/10, net 30.

Alternative Potential Discount / Day Combinations (not exhaustive)
1%2%3%1%2%3%
303030303030
555151515
1.01%2.04%3.09%1.01%2.04%3.09%
14.414.414.4242424
14.55%29.39%44.54%24.24%48.98%74.23%
1%2%3%1%2%3%
303030151515
101010555
1.01%2.04%3.09%1.01%2.04%3.09%
181818363636
18.18%36.73%55.67%36.36%73.47%111.34%

[a]. How many days does the business have to pay its bill from this supplier in order to getthe discount?

[b]. What is the approximate cost of the costly trade credit offered by this supplier?

Approximate % cost= discount percent/100-discount percent* 360/days credit received-discount period

Discount percent
Days credit received
Days of free trade credit
Periodic cost of trade credit
Number of discount periods per year
Approximate % cost

2.)

Ordering costs (F)=$20

Annual usage in units (S)=55,000

Annual carrying costs (C)=10%

Purchase price per bottle (P)= $2.00

Days per year (W)=360

Safety stock (SF)=1000

a.) what is the economic order quantity?

b.) what is the maximum inventory for this medication?

c.) How often must the center order (in days)?

d.) how many orders of this pharmaceutical will need to be placed each year?

3.) Questions 3 and 4 are attached in the image

image text in transcribed
The capital structure for Capital Health is provided below. If the firm has a 8% after tax cost of long term debt, 12% commerical loan rate, 6% commerical paper rate, short term bond rate of 5%, a 9% cost of preferred stock, and an 15% cost of common stock, what is the firm's weighted average cost of capital {WAC-3? #2 I #3 I Capital Structure {in K's: Weights Individual Costs Weighted Costs Long Term Bonds 55 Commercial Loans 55 Commercial Paper $ Short Term Bonds $ Preferred Stock $ Common Stock $ You are considering buying a new laboratory blood analysis system that will require an initial outlay of $80,000. The system has an expected useful life of 5 years and will generate free cash flows to the hospital as a whole of $15,000 at the end of each year over its 5 year life. In addition, the salvage value of the system is expected to be $10,000 based on current market conditions. Given a required rate of return of 12 percent, determine the following: Year Cash Flow Cumulative [a] Payback Period 0 ${80,000) ${80,000) [b] NPV 1 $ 15,000 ${65,000) [c] IRR $ 15,000 $60,000) [d] Should this project be accepted? $ 15,000 ${35,000) $ 15,000 ${20,000) $ 25,000 $ 5,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial And Managerial Accounting

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

6th Edition

0134486838, 978-0134486833

More Books

Students also viewed these Accounting questions