Franklin Industries has a current net working capital of $2.5 million. It expects that this will grow at a rate of 3.5% annually forever. If it could slow that growth to 3% per year,
how would that affect the value of the firm, given that it has a cost of capital of 11%?
A) a decrease of $2.22 million
B) an increase of $12,500
C) an increase of $0.78 million
D) an increase of $2.08 million
Answer: D
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A business's return on assets is ________
A) net profit multiplied by assets B) net profit divided by assets multiplied by 100% C) assets divided by net profit D) net marketing contribution divided by assets E) net marketing contribution multiplied by assets
Henderson Manufacturing Inc Henderson Manufacturing Inc manufactures electric scooters. The company currently makes all of the electronic components for the scooter itself. When 10,000 motors are manufactured each year, the motor costs per unit are as follows: Direct materials $5 Direct labor 5 Variable overhead 2 Fixed overhead 7 Plymouth Inc has offered to sell Henderson 10,000 motors for $14
per unit. If Henderson accepts the offer, 50% of the fixed overhead currently allocated to the motors could be avoided. Refer to the Henderson Manufacturing Inc information above. If Henderson accepts the offer to purchase 6,000 motors from Plymouth, the net income will: A) decrease by $9,000. B) increase by $10,000. C) decrease by $10,000. D) increase by $9,000.
Today private sector union density is around:
A. 50 percent. B. 20 percent. C. 10 percent. D. 65 percent.
What is the division of a market into similar groups of customers?
A. Market management. B. Market mix. C. Market communications. D. Market segmentation.