Archives: Solution Manual

E9-2 Prepare a sales budget for 2 quarters Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25 respectively. Because of the intense competition Edington faces, management budgets sales […]

CHAPTER 13 STEPHENSON REAL ESTATE RECAPITALIZATION 1. If Stephenson wishes to maximize the overall value of the firm, it should use debt to finance the $50 million purchase. Since interest payments are tax deductible, debt in the firm’s capital structure […]

Chapter 9 – Weygandt Managerial 7e Challenge Exercises Solutions Solution CE9-1 (a) Martin Company Cash Budget For the months ending February 2017 January February Beginning cash balance $ 135,000 $ 69,500 Add: Receipts Collections from customers 246,500 435,000 (continued on […]

Chapter 13 Input area: Shares outstanding 9,000,000 Share price 42.50$ Purchase price of land 50,000,000$ Output area: 2) Assets 382,500,000$ Equity 382,500,000$ Total assets 382,500,000$ Debt & Equity 382,500,000$ 3) a) Perpetual aftertax earnings 7,200,000$ NPV of purchase 7,600,000$ b) […]

Chapter 9: Using Excel to Make Decisions at Current Designs Part 1 Data Budgeted unit sales Quarter 1, 2017 1,000 Quarter 2, 2017 1,500 Quarter 3, 2017 750 Quarter 4, 2017 750 Quarter 1, 2018 1,100 Quarter 2, 2018 1,500 […]

6. Two primary advantages of the SML approach are that the model explicitly incorporates the relevant risk of the stock, and the method is more widely applicable than is the DGM model, since the SML doesn’t make any assumptions about […]

CHAPTER 9 Budgetary Planning ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. State the essentials of effective budgeting and the components of the master budget. 1, 2, 3, 4, 5, 6, 7, 8, 9, […]

Notes to Instructors Chapter 29 Plant Diversity I: How Plants Colonized Land Chapter 30 Plant Diversity II: The Evolution of Seed Plants What is the focus of these activities? By about 500 million years ago, increasing amounts of oxygen led […]

CHAPTER 12 THE COST OF CAPITAL FOR LAYTON MOTORS NOTE: The example below shows the results during November 2015. The actual answer to the case will change based on current market conditions. 1. The book value of the company’s liabilities […]

CHAPTER 9 Budgetary Planning LEARNING OBJECTIVES 1. STATE THE ESSENTIALS OF EFFECTIVE BUDGETING AND THE COMPONENTS OF THE MASTER BUDGET. 2. PREPARE BUDGETS FOR SALES, PRODUCTION, AND DIRECT MATERIALS. 3. PREPARE BUDGETS FOR DIRECT LABOR, MANUFACTURING OVERHEAD, AND SELLING AND […]

Notes to Instructors Chapter 12 The Cell Cycle Chapter 13 Meiosis and Sexual Life Cycles What is the focus of these activities? Most students can recite what happens in each phase of mitosis and meiosis. However, What are the particular […]

Input area: Bond maturity Book value Price YTM 3/1/2019 920,000,000$ 94.347 2.028% 3/1/2021 1,380,000,000$ 92.625 2.754% BV of debt 2,300,000,000$ BV of equity per share 10.190$ Output area: 2) RE from CAPM 9.86% 3) Book value Percent of total Quoted […]

SOLUTION Chapter 8 Waterways Continuing Problem WCP8 (a) Total Cost / Total Hours = Per Hour Charge Labor wages $240,000 5,750 $41.74 Clerical and accountant wages 60,000 5,750 10.43 (b) Material Loading Charges Total Invoice Cost for Materials Material Loading […]

Notes to Instructors Chapter 9 Cellular Respiration: Harvesting Chemical Energy Chapter 10 Photosynthesis What is the focus of these activities? In studying both cellular respiration and photosynthesis, many students tend to focus on What are the particular activities designed to […]

4. a. This is a systematic risk; market prices in general will most likely decline. b. This is a firm specific risk; the company price will most likely stay constant. c. This is a systematic risk; market prices in general […]

CHAPTER 8 SOLUTIONS TO PROBLEMS: SET B PROBLEM 8-1B (a) Direct materials ……………………………………………………………….. $ 8 Direct labor ……………………………………………………………………… 14 Variable manufacturing overhead …………………………………….. 7 Total Costs ÷ Budgeted Volume = Cost Per Unit expenses Fixed cost per unit 1,200,000 $3,200,000 […]

CHAPTER 11 THE BETA FOR FLIR SYSYTEMS NOTE: The example below shows the results from January 2015. The actual answer to the case will change based on current market conditions 1. The information used for the analysis is presented below. […]

Notes to Instructors Chapter 4 Carbon and the Molecular Diversity of Life Chapter 5 The Structure and Function of Macromolecules What is the focus of these activities? The activities associated with Chapters 2 and 3 provided students with a review […]

market. In this case, the price is affected by supply and demand, so no company in the industry can affect price. Therefore to earn a profit, companies must focus on controlling costs. Investment X ROI percentage = Return on investment […]

Input area: 3 month Risk-free Monthly risk-free Stock price Return S&P 500 S&P 500 return Stock risk premium Market risk premium 30 Jun-13 0.0005 0.0000417 26.11$ 0.1071 1606.28 -0.0150 0.1071 -0.0150 31 Jul-13 0.0004 0.0000333 31.44$ 0.2039 1685.73 0.0495 0.2039 […]

Notes to Instructors Chapter 2 The Chemical Context of Life Chapter 3 Water and the Fitness of the Environment What is the focus of these activities? Living organisms function in the real world, so they are subject to all the […]

E8-1 Compute Target Cost Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Mesa believes that it can charge $20 […]

5. The market is not weak form efficient. 6. Yes, historical information is also public information; weak form efficiency is a subset of semi-strong form efficiency. 7. Ignoring trading costs, on average, such investors merely earn what the market offers; […]

Notes to Instructors Chapter 56 Conservation Biology and Restoration Ecology What is the focus of this activity? Many species of both plants and animals are rapidly going extinct as a result of habitat What is this particular activity designed to […]

Chapter 8: Using Excel® to Make Decisions at Current Designs Part 1 Data Budgeted cost data Repair technician wages $30,000 Fringe benefits $10,000 Required Follow the step-by-step directions to determine the price of a repair for Current Designs. Part 1 […]

5. The Sharpe ratio is: Sharpe ratio = [E(R) – RF] /  Using the historical return as the expected return, the Sharpe ratio for each fund is: S&P 500 Index fund = (.0915 – .04) / .1935 = .27 […]

Notes to Instructors Chapter 55 Ecosystems What is the focus of this activity? In Activity 53.2, students compared exponential growth and logistic growth models. On one hand, the exponential growth model assumes no limits on the availability of What is […]

CHAPTER 8 Pricing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Compute a target cost when the market determines a product price. 1, 2 1 1 1, 2, 3 2. Compute a target selling […]

Chapter 10 A Job at S&S Air Input area: Risk-free rate 4.00% 10-year return Standard deviation S&P 500 Index fund 9.15% 19.35% Small-cap stock fund 14.05% 26.82% Large company stock fund 9.53% 23.82% Bond fund 8.73% 11.45% Output area: Sharpe […]

Notes to Instructors Chapter 54 Community Ecology What is the focus of this activity? Campbell Biology, 9th edition, defines community ecology as “the study of how that can affect the structure and organization of communities. What is the particular activity […]

CHAPTER 8 LEARNING OBJECTIVES 1. COMPUTE A TARGET COST WHEN THE MARKET DETERMINES A PRODUCT PRICE. 2. COMPUTE A TARGET SELLING PRICE USING COST- PLUS PRICING. 3. USE TIME-AND-MATERIAL PRICING TO DETERMINE THE COST OF SERVICES PROVIDED. 4. DETERMINE A […]

4. Management’s discretion to set the firm’s capital structure is applicable at the firm level. Since any one particular project could be financed entirely with equity, another project could be financed with debt, and the firm’s overall capital structure remain […]

Notes to Instructors Chapter 53 Population Ecology What is the focus of these activities? To study ecology, we often use mathematical models and statistical analysis to estimate What are the particular activities designed to do? Activity 53.1 What methods can […]

SOLUTION Chapter 7 Waterways Continuing Problem WCP7 Part 1 (a) Even though contribution margin per unit would be cut to $0.20 ($2.60 – 2.40) on the additional units, Waterways would increase its profits by $3,000 to $59,000 (compared to $56,000). […]

CHAPTER 9 CONCH REPUBLIC ELECTRONICS This is an in-depth capital budgeting problem. The initial cash outlay at Time 0 is the cost of the new equipment, $34,500,000. The R&D costs and marketing costs are both sunk costs. The sales each […]

Notes to Instructors Chapter 52 An Introduction to Ecology and the Biosphere What is the focus of this activity? Ecology is the scientific study of the interactions of organisms and their environments. What is this particular activity designed to do? […]

CHAPTER 7 SOLUTIONS TO PROBLEMS: SET B PROBLEM 7-1B (a) Reject Order Accept Order Net Income Increase (Decrease) Revenues (10,000 X $30) Cost of goods sold $0 0 $300,000 240,000 (1) $ 300,000 ( (240,000) $2,160,000 ÷ 90,000 units = […]

Price 485$ VC 205$ FC 5,100,000$ Tax rate 35% NWC percentage 20% Required return 12% Sensivity analysis New price 495$ Quantity change 100 NOTE: Change in units per year Chapter 9 Input Area: Equipment 34,500,000$ Salvage value 5,500,000$ R&D 750,000$ […]

Notes to Instructors Chapter 51 Animal Behavior What is the focus of this activity? The morphology, physiology, and behavior of organisms are all tightly integrated or What is this particular activity designed to do? Activity 51.1 What determines behavior? In […]

CHAPTER 7 SOLUTIONS TO EXERCISES—SET B EXERCISE 7-1B (a) Reject Order Accept Order Net Income Effect Revenues Materials ($0.50) $ –0– –0– $20,000 (2,000) $20,000 (2,000) order because incremental revenue exceeds incremental expenses by $4,200. have to consider the lost […]

b. The worst problem associated with payback period is that it ignores the time value of money. In addition, the selection of a hurdle point for payback period is an arbitrary exercise that lacks any steadfast rule or method. The […]

Notes to Instructors Chapter 50 Sensory and Motor Mechanisms What is the focus of these activities? Skeletal muscles are made up of bundles of muscle fibers (muscle cells). Each muscle What are the particular activities designed to do? Activity 50.1 […]

E7-5 Use incremental analysis for make-or-buy decision Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing is charged to production at the rate of […]

Notes to Instructors Chapter 49 Nervous Systems What is the focus of these activities? Maintaining homeostasis is central to maintaining life. Control of homeostasis is the system). What is this activity designed to do? This activity allows students to sort […]

CHAPTER 8 BULLOCK GOLD MINING 1. An example spreadsheet is: 3. There are many possible variations on the VBA code to calculate the payback period. Below is a VBA program from http://www.vbaexpress.com/kb/getarticle.php?kb_id=252. PAYBACK = i Exit Function ElseIf x < […]

Chapter 7 – Weygandt Managerial 7e Challenge Exercises Solutions Solution CE7-1 (a) Calculations: Sales price = $6,750,000/75,000 units = $90 per unit Cost of goods sold = $4,875,000 Reject order Accept order Net Income Increase (Decrease) Revenues (4,000 x $62) […]

Notes to Instructors Chapter 48 Nervous Systems What is the focus of these activities? In vertebrates, the endocrine and nervous systems maintain primary control over What are the particular activities designed to do? Activity 48.1 How do ion concentrations affect […]

MIRR 12.51% =MIRR(D8:D17,D19,D19) Profitability index 1.04 =NPV(D19,D9:D17)/-D8 NPV 28,451,509.51$ =NPV(D19,D9:D17)+D8 Input area: Year Cash flow 0(650,000,000)$ 180,000,000$ 2121,000,000$ 9(72,000,000)$ Required return 12% Output area: Payback period 4.31 IRR 13.25% =IRR(D8:D17) IRR -59.39% =IRR(D8:D17,-0.99) Chapter 8 Bullock Gold Mining 3162,000,000$ 4221,000,000$ […]

Chapter 7: Using Excel to Make Decisions at Current Designs Part 1 Situation 1 Data Units desired by brewing company 100 coolers Costs of producing coolers: Direct materials 80.00$ per cooler Direct labor 60.00$ per cooler Variable overhead 20.00$ per […]

5. The common stock probably has a higher price because the dividend can grow, whereas it is fixed on the preferred. However, the preferred is less risky because of the dividend and liquidation preference, so it is possible the preferred […]