managerial accounting 458802

pls show all your answers in detail with the calculations

6. (Chapter 19) Black Hawk Wineries is considering the purchase of lockbox services from first Bancorp. Currently, it takes 6 days to collect funds from customers. The collection period would be reduced by 2 days if the lockbox system is implemented. The average number of payments received daily is 300 and the average check size is $150. First Bancorp will charge 5 cents per check in return for operating the lockbox system. Assume a 360-day year. Suppose one-year T-bills yield 6%. Should Black Hawk Wineries purchase the system?

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7. (Chapter 14) Treasury bills have a return of 3.5 percent and the market risk premium is 8 percent. If a firm has a beta of 1.6, what is the cost of equity?

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9. (Chapter 18) Bubbagump Shrimp, Inc. had sales of $8,000 in November, $14,000 in December, $10,000 in January, $12,000 in February, and $8,000 in March. The firm’s cost of goods sold (COGS) in any given month is equal to 70 percent of the next month’s sales. The firm collects its receivables in 60 days and pays its payables in 30 days. The firm begins January 1 with $10,000 in cash. All sales and purchases are on credit. There are no other costs or revenues. What are Bubbagump’s total cash disbursements in March? Assume there are 30 days in every month.

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