Average collection period and Current ratio

Can you walk me through these two problems? On average, Microlimp's accounts receivables total $3,000,000 on annual sales of $400,000,000. What is Microlimp's average collection period? How would the following actions affect a firm's current ratio? a. Inventory is purchased and paid for with cash, it is not purchased on account. b. The firm takes out a short term bank loan to pay its overdue accounts payable. c. A customer prepays in full for specially ordered merchandise that it will take 60 days to manufacture. d. Inventory is sold at the firm's normal 35% markup over cost.

Hilton, Chapter 18, Case 18.48, River Beverages

River Beverages is a food and soft-drink company with worldwide operations. The company is organized into five regional divisions with each vice president reporting directly to the CEO, Cindy Wilkins. Each vice president has an R&D department, controller, and three divisions; carbonated drinks, juices and water, and food products. Management believes that the structure works well for River Beverages because different regions have different tastes and the division's products complement each other. River Beverages' companywide and divisional organization charts are shown here. CEO Vice President Vice President Vice President Vice President Vice President ... click for more

WACC calculation

1. Firm XYZ can borrow at 8% and is subject to a corporate tax rate of 34%. It's estimated cost of equity capital is 12% and it's debt equity ratio is 3 to 2 (ie, 60% and 40%, respectively). A) Calculate XYZ's WACC. b) What is a firm's optimal capital structure. 2.Research a recent news release concerning a listed company. Track the change in share price and briefly summarize the change text book used finance for executives second ecition hawawini and viallet isbn 0-324-11775-2

GROUP'S SHARE of Income Taxes

Latest Data available is for the year 2003 1. What is the Groups Share of and the Income Split Point for Individual Income Taxes as of 2003 for the following group of income earners: GROUP'S SHARE of Income Taxes INCOME SPLIT POINT Top 1% of income earners $ 5% " " " $ 10% $ 25% $ 50% ... click for more

Problems

Please show calculations and walk through the process to obtain a solution. 1} A 10-year Corporate bond is issued with a face value of $100,000, paying interest of $2,500 semi-annually. If market yields decrease shortly after the T-bond is issued, what happens to the bond's: a. price? b. coupon rate? c. yield to maturity? 2 } McCoy, Inc., has equity with a market value of $30 million and debt with a market value of $20 million. The cost of the debt is 6 percent semi-annually. Treasury bills that mature in one year yield 10 percent per annum, and the expected return on the market portfoli... click for more