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shares

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Question

In 2013 Caterpillar Inc. had about 656 million shares outstanding. Their book value was $35 per share, and the

market price was $87.50 per share. The company’s balance sheet shows that the company had $17.7 billion of long-term debt, which was currently selling near par value.

a.What was Caterpillar’s book debt-to-value ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.)

  Book value   

b.What was its market debt-to-value ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.)

  Market value   

c.Which measure should you use to calculate the company’s cost of capital?

 
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the financial manager

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Question

Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She

forecasts that 400 payments a day will be made to lock boxes with an average payment size of $3,000. The bank’s charge for operating the lock boxes is $.50 a check. The interest rate is .012% per day.

a-1.If the lock box makes the cash available 2 days earlier, calculate the net daily advantage of the system. (Do not round intermediate calculations.)

  Daily interest saved$   88

a-2.Is it worthwhile to adopt the system?   Yes

b.What minimum reduction in the time to collect and process each check is needed to justify use of the lock-box system? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

I NEED help with b please

 
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A cost-volume-profit (CVP)

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Question

A cost-volume-profit (CVP) analysis models short-term profit (πB) as a function of all of the following variables

except:

Variable costs.

Fixed costs.

Output level.

Gross margin.

Sales volume.

 
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revenues

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Question

The owner of a bicycle repair shop forecasts revenues of $176,000 a year. Variable costs will be $54,000, and

rental costs for the shop are $34,000 a year. Depreciation on the repair tools will be $14,000. Prepare an income statement for the shop based on these estimates. The tax rate is 40%. (Input all amounts as positive values.)

INCOME STATEMENT  (Click to select)Variable costsRental costsRevenueDepreciationPretax profit

$     Rental costs    (Click to select)Variable costsPretax profitDepreciationRevenue

    (Click to select)DepreciationVariable costsRevenuePretax profit

     (Click to select)RevenueRental costsDepreciationPretax profitVariable costs

    (Click to select)Pretax profitRevenueRental costsTaxesDepreciation

     (Click to select)Net lossNet income

$    

 
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