PRINCIPLES OF MANAGERIAL FINANCE TWELFTH EDITION LAWRENCE J. GITMAN SAN DIEGO STATE UNIVERSITY PEARSON Prentice Hall Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City Munich Paris Cape Town Hong Kong Montreal Contents Preface xxxi Revised Content xxxiii Supplements to the Twelfth Edition Acknowledgments To the Student xxxvii xl xliii Part One Introduction to Managerial Finance 1 Chapter 1 The Role and Environment of Managerial Finance page 2
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1-5 a. Historical costs are not useless in rapidly changing environment. Even though it does not tell us the fair market value of a certain item‚ it gives us an idea of how the price has changed as time passes. It allows us to record the depreciation and forecast the future costs. b. 1-8 2-4 A lotion bundle consists of 2 cases of 4oz‚ 4 cases of 8oz and 1 case of 12oz bottles. For each lotion bundle: Revenue=2*$36+4*$66+1*72=$408‚ Variable cost=2*$13+4*$24.5+1*27=$151 Contribution
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LECTURE 7: ANGER ANGER OR EXASPERATION: Anger is a general and conventional commotion with a huge range of intensity‚ from mild irritation and frustration to rage. It is a counteraction to a perceived threat to ourselves‚ whom we love‚ things which we own‚ our self-image‚ or some part of self identity. Anger is an alarming bell that tells us that something is wrong. COMPONENTS OF ANGER: Anger has three components: * Physical reactions‚ usually starting with a rush of adrenaline and responses
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1. Nash equilibrium is where one player maximizes his payoff and the other doesn’t. is where each player maximizes his own payoff given the action of the other player. is where both players are maximizing their total payoff. is a unique prediction of the likely out-come of a game. Use the following to answer Questions 2–4: Consider the following information for a simultaneous move game: Two discount stores (mega-store and superstore) are interested in expanding their market share through advertising
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Murzakarimova Balzhan Management 343 Q1.6 Which concept—the business profit concept or the economic profit concept—provides the more appropriate basis for evaluating business operations? Why? Businesses i know are there to maximize profit and minimize cost.On this basis‚i think the business profit concept is the most appropriate basis for evaluating business operations because banks‚lenders or creditors will the creditworthiness of such business if loan or any other facility has been advanced
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Case 8-29 1. a. Sales budget: April May June Quarter Budgeted sales in units 35‚000 45‚000 60‚000 140‚000 Selling price per unit × $8 × $8 × $8 × $8 Total sales $280‚000 $360‚000 $480‚000 $1‚120‚000 b. Schedule of expected cash collections: February sales $ 48‚000 $ 48‚000 March sales 112‚000 $ 56‚000 168‚000 April sales 70‚000 140‚000 $ 70‚000 280‚000 May sales 90‚000 180
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------------------------------------------------- Chapter 5: Bonds‚ Bond Valuation‚ and Interest Rates (5–1) Bond Valuation with Annual Payments Jackson Corporation’s bonds have N=12 years remaining to maturity. Interest is paid annually‚ the bonds have a FV=$1‚000 par value‚ and the coupon interest rate is PMT=8%. The bonds have a yield to maturity of I=9%. What is the current market price of these bonds? $928.39 Calculator solution: Input: N = 12‚ I = 9‚ PMT = 80‚ FV = 1000‚ Solve for PV =
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Q1. In a country‚ the velocity of money is constant. Real GDP grows by 5% per year‚ the money stock by 14% per year‚ and the nominal interest rate is 11 per cent. What is the real interest rate? A.1 The following is provided in the question GDP growth rate (Y)- 5% Money Stock growth rate (M)-14% Nominal Interest Rate- 11% Velocity Of Money- Constant Real Interest Rate = Nominal interest rate - Inflation ...................... Fisher Effect By the quantity equation we have; M .V
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Master Budget Case: ToyWorks Ltd. (B) ToyWorks Ltd. is a company that manufactures and sells a single product‚ which they call a Toodle. For planning and control purposes they utilize a monthly master budget‚ which is usually developed at least six months in advance of the budget year. Their fiscal year end is June 30. During the summer of 2007‚ Chris Leigh‚ the ToyWorks controller‚ spent considerable time with Pat Frazer‚ the Manager of Marketing‚ putting together a sales forecast for
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The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. In computing an overhead rate for the year‚ the company’s estimates were: manufacturing overhead cost‚ $126‚000; and direct labor cost‚ $84‚000. The company has provided the following data in the form of an Excel worksheet: [pic] .:. Required: 1. a. Compute the predetermined overhead rate for the year. b. Compute the amount of underapplied or overapplied
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