In finance department of a certain company, there are twice as many men as women and in the marketing department there are ten more men than women. The number of women in both departments is the same and there are two more workers in finance department compared to marketing department. How many workers are in the finance department?
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as a member of the finance Department of Ranch Manufacturing, your boss has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packaging equipment for the plant. Under the assumption that the firm’s present capital structure reflects the appropriate mix of capital sources for the firm, you have determined the market value of the firm’s capital structure as follows:
Source of capital Market value
Bonds $400, 000
Preference shares $2000, 000
Ordinary shares $6000, 000
To finance the purchase, Ranch Manufacturing will sell 10 –year bonds paying interest at a rate of 8% per year (with semi-annual payments) at the market price of $1050. Preference shares paying a $2.00,
dividend can be sold for $25. Ordinary shares for Ranch Manufacturing are currently selling for $55 each and the firm paid a $3 dividend last year.
Dividends are expected to continue growing at a rate of 5% per year into the indefinite future.
If the firm’s tax rate is 30%, what discount rate should you use to evaluate the equipment purchase?
To solve this problem, let's break it down step by step:
1. Let's assume the number of women in both departments is "x". Since the number of women in both departments is the same, we can use "x" to represent the number of women in both the finance and marketing departments.
2. With this assumption, we can determine the number of men in each department based on the given information:
- In the finance department, there are twice as many men as women. So, the number of men in the finance department is 2 * x.
- In the marketing department, there are ten more men than women. So, the number of men in the marketing department is x + 10.
3. According to the problem, there are two more workers in the finance department compared to the marketing department. This means the total number of workers in the finance department is x + 2.
4. To find the total number of workers in the finance department, we need to add the number of men and women in that department. So, the total number of workers in the finance department is (2 * x) + x.
5. Now we can set up an equation based on the information we have:
(2 * x) + x = (x + 2)
6. Solving the equation:
3x = x + 2
2x = 2
x = 1
7. Therefore, there is 1 woman in both the finance and marketing departments.
8. Now we can substitute the value of x back into the equations to find the total number of workers in the finance department:
Total workers in finance department = (2 * x) + x = (2 * 1) + 1 = 3
So, there are 3 workers in the finance department.