The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation. Introduction: Inventory turnover: It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

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Answer 1

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

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Students have asked these similar questions

Eccles Inc., a zero-growth firm, has an expected EBIT of $100.000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)? a. $475,875 b. $536,921 c. $587,750 d. $623,050 e. $564,167

Refer to the data for Eccles Inc. earlier. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)? a. $475,875 b. $536,921 c. $587,750 d. $623,050 O $564,167

Warren Supply Inc. wants to use debt and common equity for its capital budget of $800,000 in the coming year, but it will not issue any new common stock. It is forecasting an EPS of $3.00 on its 500,000 outstanding shares of stock and is committed to maintaining a $2.00 dividend per share. Given these constraints, what percentage of the capital budget must be financed with debt? a. 33.84% b. 37.50% c. 32.15% d. 30.54% e. 35.63%

Answer 2

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 6

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 7

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 8

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 9

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 10

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 11

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

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