BINARY COLLEGE DIPLOMA IN BUSINESS ADMINISTRATION (DBA) DIPLOMA IN ACCOUNTING (DIA) MANAGEMENT ACCOUNTING FINAL EXAM 60% DATE : SUBJECT : COURSE : ( DBA‚ DIA) I.C. NO. / PASSPORT NO. : NAME : MANAGEMENT ACCOUNTING (DIA) (DBA) SECTION A ANSWER THE QUESTION IN THIS SECTION (COMPULSORY). [TOTAL 20 MARKS] EXPLAIN THE MEANING OF EACH OF THE
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Harris Seafood Question Number One (1) Value the processing plant proposal. Ignore the Industrial Revenue Bond financing. Assume: Market Risk Premium 8.8%‚ Riskless Rate 11.41%‚ and Harris Long Term Debt Rate 13.5%. Our approach to valuing the processing plant can easily be decomposed into three distinct steps first‚ find the value of the foreseeable free cash flows. Next‚ calculate the terminal value of the project. Finally‚ take the present value of those flows. The next few paragraphs walk
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e) in this exam. ‐ Fill in your name and other required information IN PENCIL on the Computer Answer sheet as well as IN INK on this cover sheet. ‐ Blank questions or those with multiple answers will not receive any credit. SCORES (FOR INTERNAL USE ONLY) Part I Multiple Choice Questions (Max: 70 Points) Blue Version Part II Long Answer Questions Question 1 Question 2 Question 3 Question 4 (Max: 8 Points) (Max: 6 Points) (Max: 8 Points) (Max: 8 Points) Page 1 of 17 Total Part
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Finance 3303 Business Finance Chapter 11 Practice Problems 1. Two investment opportunities have the following expected cash flows. If your minimum required return is 27%‚ which proposal would be the best based on the Net Present Value evaluation method? Investment A Investment B Year 0 $( 567‚000) $( 577‚000) Year 1 $ 254‚000 $ 256‚000 Year 2 $ 287‚000 $ 281‚000 Year 3 $ 260‚000 $ 290‚000 Year 4 $ 155‚000 $ 145‚000 A) Neither proposal
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size. The student’s task is to rank the projects. The first objective of the case is to examine critically the principal capital-budgeting criteria. A second objective is to consider the problem that arises when net present value (NPV) and internal rate of return (IRR) disagree as to the ranking of two mutually exclusive projects. Finally‚ the case is a vehicle for introducing the problem created by attempting to rank projects of unequal life and the solution to that difficulty criterion. Please
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sales. The firm estimates that a proposed relaxation of credit standards would not affect its 70-day average collection period but would increase bad debts to 7.5% of sales‚ which would increase to 300‚000 units per year. Forrester requires a 12% return on investments. Show all necessary calculations required to evaluate Forrester’s proposed relaxation of credit standards. proposed relaxation of credit standards would not affect its 70-day average collection period but would
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products and services through three divisions of the company: consumer products division‚ industrial products division and professional services. Each division is treated as an entirely different company and the performance evaluation criteria is return on assets in recent years after major shift. Although‚ the divisions used to be treated as profit centres‚ this decision meant they are treated more as investment centres. The Company in 2008 & 2009: From the income statement for 2008 and 2009
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(2008-2022). Evaluation of a capital expenditure includes discounting or non-discounting methods. Victoria Chemicals (VC) uses the discounting methods‚ which are net present value (NPV)‚ and internal rate of return (IRR). The discount rate used for the NPV evaluation is a nominal rate of 10%. For the hurdle rate in the IRR
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investment project in Argentina. We will provide a capital management analysis using discount rate calculations that account for the project be in a foreign country. Additionally‚ we will explore the NPV and IRR for this project. Lastly‚ we will submit our recommendation. This document explores an oil investment project in Argentina. We will provide a capital management analysis using discount rate calculations that account for the project be in a foreign country. Additionally‚ we will explore
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are an assistant to Leigh Jones‚ the financial vice-president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following data‚ which she believes may be relevant to your task: a) The firm’s tax rate is 40%. b) The current price of Harry Davis’s 12% coupon‚ semiannual payment‚ noncallable bonds with 15 years remaining to maturity is $1‚153.72. Harry Davis does not use short-term interest-bearing debt on a permanent basis. New bonds would be
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