Bubbly Waters currently sells 530 Class A spas, 680 Class C spas, and 430 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 605 units per year. However, if the new spa is added, Class A sales are expected to decline to 340 units while the Class C sales are expected to increase to 705. The sales of the deluxe model will not be affected. Class A spas sell for an average of $16,500 each. Class C spas are priced at $8,300 and the deluxe models sellfor $19,300 each. The new mid-range spa will sell for $10,300. What annual sales figure should you use in your analysis?

Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales $ 22,800 $ 25,000 $ 30,100 $ 39,300 Purchases are equal to 58 percent of next quarter’s sales. Each month has 30 days, the accounts receivable period is 29 days, and the accounts payable period is 32 days. How much will the company pay suppliers in the third quarter?

A project has an estimated sales price of $71 per unit, variable costs of $44.03 per unit, fixed costs of $57,000, a required return of 14 percent, an initial investment of $79,500, no salvage value, and a life of four years. Ignore taxes. What is the degree of operating leverage at the financial break-even level of output?

One year ago, you purchased 100 shares of Titan Wood Products for $48.29 per share. The stock has paid dividends of $.55 per share over the past year and is currently priced at $53.18. What is your total dollar return on your investment?

Granite Works maintains a debt-equity ratio of .58 and has a tax rate of 21 percent. The pretax cost of debt is 8.9 percent. There are 18,000 shares of stock outstanding with a beta of 1.42 and a market price of $23 per share. The current market risk premium is 7.8 percent and the current risk-free rate is 3.1 percent. This year, the firm paid an annual dividend of $1.68 per share and expects to increase that amount by 2 percent each year. Using an average expected cost of equity, what is the weighted average cost of capital?

Assume you are offered credit terms from a store you frequently visit. Which of the following credit terms should you prefer?

What are the arithmetic and geometric average returns for a stock with annual returns of 21 percent, 9 percent, −2 percent, and 13 percent?

Seven months ago, you purchased 420 shares of Mitchum Trading for $63.09 per share. The stock pays a quarterly dividend of $.31 per share and is currently priced at $64.19. What is the total dividend income you received?

A stock had annual returns of 7 percent, −28 percent, 13 percent, and 23 percent for the past four years. The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.

A project has an initial cost of $7,900 and cash inflows of $2,100, $3,140, $3,800, and $4,500 per year over the next four years, respectively. What is the payback period?