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This is due in 2hrs and 15mins. Its basic Finance questioners. Please send answer by answer as chat within the chat box as you complete
This is due in 2hrs and 15mins. Its basic Finance questioners. Please send answer by answer as "chat" within the chat box as you complete them one by one. At the end please provide me the entire set in word format. When you send each answer one by one through chat box, please don't send as you are sending answers, then I will have to click not complete for answer answers you provide until you give all. So, at the end, give all at once, and as you complete please send one by one through chat box. Thanks.
This is due in 2hrs and 15mins. Its basic Finance questioners. Please send answer by answer as "chat" within the chat box as you complete them one by one. At the end please provide me the entire set in word format. When you send each answer one by one through chat box, please don't send as you are sending answers, then I will have to click not complete for answer answers you provide until you give all. So, at the end, give all at once, and as you complete please send one by one through chat box. Thanks. Page 2: Question 1.1. (TCO C) Describe the types of resources (assets) needed for a new product venture during its development and start-up stages. Comment on the likely revenues and expenses during these early life cycle stages. (Points : 30) 2. (TCO B) The CEO of Hernandez Database Design died today; she owned the firm. Discuss the impact on the business' life and operations if its corporate form is a) a sole proprietorship and b) if it is a C Corporation? (Points : 30) 3. (TCO C) AudioFile would like to know its EBDAT breakeven level. The company has only one product, the Voce9000 speaker, a high-end speaker that downloads media player files into its own memory. The firm's speakers sell for $10,000 each. Each speaker costs $6,500 in materials and manufacturing costs (all production is outsourced to an external manufacturer). The firm's headquarters facility lease is $350,000 annually, its marketing expense is $100,000 per year, and salary costs are $550,000 annually. Complete the following, and show all your calculations for each. Part 1: Calculate the firm's a) EBDAT revenue, and b) contribution profit margin at EBDAT breakeven. Part 2: If the firm sells 400 speakers, what will be its c) gross profit percentage, d) operating income, and e) operating income percentage? (Show all calculations) (Points : 40) 4. (TCO A, D) H2Oh! has patented a brilliant technology that transforms dry air into drinkable water. In 2012, the company has $8 million in revenue, and $1.2 million in net income. H2Oh! began the year with $5 million in book equity on January 1. Complete the following, and show all your calculations for each: a) Forecast the firm's 2017 sales, assuming a 40% sales growth rate per year starting in 2013. b) Assuming the company pays out no dividends in 2012, what is the firm's maximum sustainable growth rate? c) Compare H2Oh!'s sales growth rate with the firm's maximum sustainable growth rate (which you just calculated in (b). Will the firm be able to support its growth through internally generated funds? If so, discuss the financial reasons why this is so using the textbook's concept of maximum sustainable growth rate. If you believe the firm will not be able to support its growth, explain why and discuss what action management must take. d) Part 1: If the firm pays out $400,000 in dividends, what is the firm's retention rate? Part 2: Assuming the firm pays out $400,000 in 2012 dividends, what is H2Oh!'s sustainable growth rate? e) After $400,000 in 2012 dividends have been paid on December 31, what will be H2Oh!'s new book equity balance? f) Use your final answer for (e) to answer the following: assume that the H2Oh!'s balance sheet shows that the firm has assets with a book value of $7 million. How much debt does the firm have? (Points : 40) 5. (TCO A) What does it mean to screen a venture opportunity? Discuss the components that are utilized in the VOS Indicator screening tool and the metrics used for at least one specific factor within each of the broad factor categories that are used to assesses the attractiveness of a venture opportunity (i.e., industry considerations, pricing considerations, harvesting considerations, etc.). (Points : 30) AudioFile would like to know its EBDAT breakeven level. The company has only one product, the Voce9000 speaker, a high-end speaker that downloads media player files into its own memory. The firm's speakers sell for $10,000 each. Each speaker costs $6,500 in materials and manufacturing costs (all production is outsourced to an external manufacturer). The firm's headquarters facility lease is $350,000 annually, its marketing expense is $100,000 per year, and salary costs are $550,000 annually. Complete the following, and show all your calculations for each... 3. (TCO C) AudioFile would like to know its EBDAT breakeven level. The company has only one product, the Voce9000 speaker, a high-end speaker that downloads media player files into its own memory. The firm's speakers sell for $10,000 each. Each speaker costs $6,500 in materials and manufacturing costs (all production is outsourced to an external manufacturer). The firm's headquarters facility lease is $350,000 annually, its marketing expense is $100,000 per year, and salary costs are $550,000 annually. Complete the following, and show all your calculations for each. Part 1: Calculate the firm's a) EBDAT revenue, and b) contribution profit margin at EBDAT breakeven. Part 2: If the firm sells 400 speakers, what will be its c) gross profit percentage, d) operating income, and e) operating income percentage? (Show all calculations) (Points : 40) Sales revenue (10,000*400) 4,000,000.00 Cost of goods sold (6,500*400) (2,600,000.00 ) Gross profit 1,400,000.00 Operating expenses (Lease, marketing and salary) (1,000,000.00 ) Operating income 400,000.00 35.00% 10.00% 4. (TCO A, D) H2Oh! has patented a brilliant technology that transforms dry air into drinkable water. In 2012, the company has $8 million in revenue, and $1.2 million in net income. H2Oh! began the year with $5 million in book equity on January 1. Complete the following, and show all your calculations for each: a) Forecast the firm's 2017 sales, assuming a 40% sales growth rate per year starting in 2013. 2012 Sales Sales growth 2013 2014 2015 2016 2017 8,000,000.00 11,200,000.00 40% 15,680,000.00 21,952,000.00 30,732,800.00 43,025,920.00 b) Assuming the company pays out no dividends in 2012, what is the firm's maximum sustainable growth rate? Net income 1,200,000.00 Average Equity ((5000000 + 6200000)/2) ROE SGR (ROE X 1- dividend payout ratio) Dividends = 0 5,600,000.00 21.43% 21.43% c) Compare H2Oh!'s sales growth rate with the firm's maximum sustainable growth rate (which you just calculated in (b). Will the firm be able to support its growth through internally generated funds? If so, discuss the financial reasons why this is so using the textbook's concept of maximum sustainable growth rate. If you believe the firm will not be able to support its growth, explain why and discuss what action management must take. SGR=21.43% Forecasted sales growth = 30% Difference = -8.57% SGR is the maximum growth rate a company may achieve without need for external funding or in other words, all funding will be internally generated. However, based on our calculations, its forecasted sales growth is much higher when compared to its SGR. This means that the company will not be able to meet the forecasted sales growth with internally generated funds and without borrowing from external sources. d) Part 1: If the firm pays out $400,000 in dividends, what is the firm's retention rate? Part 2: Assuming the firm pays out $400,000 in 2012 dividends, what is H2Oh!'s sustainable growth rate? Dividends Net income Payout ratio Retention rate (1- dividend payout ratio) ROE 400,000.00 1,200,000.00 33.33% 66.67% 21.43% SGR (ROE X 1- dividend payout ratio) 14.29% e) After $400,000 in 2012 dividends have been paid on December 31, what will be H2Oh!'s new book equity balance? Equity, Jan 1 5,000,000.00 Net income 1,200,000.00 Dividends Equity, Dec. 31 (400,000.00) 5,800,000.00 f) Use your final answer for (e) to answer the following: assume that the H2Oh!'s balance sheet shows that the firm has assets with a book value of $7 million. How much debt does the firm have? (Points : 40) Total assets Equity, Dec. 31 7,000,000.00 Total debt 1,200,000.00 (5,800,000.00)Step by Step Solution
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