Schultz industries is considering the purchase of arras manufacturing. arras is currently a supplier for schultz, and the acquisition would allow schultz to better control its material supply. the current cash flow from assets for arras is $7.9 million. the cash flows are expected to grow at 8 percent for the next five years before leveling off to 5 percent for the indefinite future. the cost of capital for schultz and arras is 12 percent and 10 percent, respectively. arras currently has 3 million shares of stock outstanding and $25 million in debt outstanding. what is the maximum price per share schultz should pay for arras?

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 machine-hours were used during the year. required: 1. compute the amount of underapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year.

Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?

Acoase solution to a problem of externality ensures that a socially efficient outcome is to