Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 5% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries
If Banco industries has a weighted average cost of capital of 11%, $50 million in cash, $80 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 1?
A) $6.52
B) $11.74
C) $13.04
D) $23.48
Answer: C
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Chet meets each Wednesday night at his local bookstore with a small group of computer enthusiasts. The group calls itself X-Hackers because at one time all of these select members were hackers
Today, members of the group have similar values and have pledged to stop computer hacking. Which membership factor best describes what brings this group together? A) Propinquity B) Mere exposure C) Group cohesiveness D) Avoidance
In traditional programming, data and the operations to manipulate the data are kept separate from each other.
Answer the following statement true (T) or false (F)
Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform these tasks, is
A. supply chain management. B. offshoring. C. outsourcing. D. subcontracting.
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unitDirect materials $12Direct labor 8Variable manufacturing overhead 12Fixed manufacturing overhead 8Total unit cost $40An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits?
A. $80,000 decrease B. $160,000 decrease C. $160,000 increase D. $320,000 increase