Drew cane products, inc., processes sugar cane in batches. the company buys a batch of sugar cane from farmers for $90 which is then crushed in the company's plant at a cost of $11. two intermediate products, cane fiber and cane juice, emerge from the crushing process. the cane fiber can be sold as is for $21 or processed further for $13 to make the end product industrial fiber that is sold for $45. the cane juice can be sold as is for $41 or processed further for $29 to make the end product molasses that is sold for $103.
what is the financial advantage (disadvantage) for the company from processing one batch of sugar cane into the end products industrial fiber and molasses rather than not processing that batch at all?
Answers: 2
Other questions on the subject: Business
Business, 21.06.2019 15:50, didirose
2. you take $100 you had kept under your mattress and deposit it on your bank account. if this $100 stays in the banking system as reserves and if banks hold reserves equal to 10% of deposits, by how much does the total amount of deposits in the banking system increase? by how much does the money supply increase?
Answers: 3
Business, 22.06.2019 12:10, felisha1234
Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note:
Answers: 1
Business, 22.06.2019 22:00, Suzispangler2264
Miami incorporated estimates that its retained earnings break point (bpre) is $21 million, and its wacc is 13.40 percent if common equity comes from retained earnings. however, if the company issues new stock to raise new common equity, it estimates that its wacc will rise to 13.88 percent. the company is considering the following investment projects: project size irr a $4 million 14.00% b 5 million 15.10 c 4 million 16.20 d 6 million 14.20 e 1 million 13.42 f 6 million 13.75 what is the firm's optimal capital budget?
Answers: 3
Do you know the correct answer?
Drew cane products, inc., processes sugar cane in batches. the company buys a batch of sugar cane fr...
Questions in other subjects:
Health, 10.07.2019 21:00
History, 10.07.2019 21:00
History, 10.07.2019 21:00
