A firm’s net income before tax, EBT [NIBT] (on the income statement) is affected by _____.
taxes
interest
dividends
I purchased a water park for $1,910,000. The annual net cash inflows are $481,000 for 8 years. There is no residual value and I have to use straight line depreciation. Stockholders demand annual return of 10% investments. How do I determine accounting rate of return of ARR. I think that the average annual operating income/amount invested = ARR % so average operating income =total cash flow-depreciation divided by # of years of investment…how do I figure out this out?
Pettit printing Company has a total market value of $100 million, consisting of 1 million shares selling for $50 per share and $50 million of 10% perpetual bonds now selling at par value. The firm’s EBIT is $13.24 million, and its tax rate is 15%. Pettit can change its capital structure by either increasing its debt to 70% (based on market values) or decreasing it to 30%. If it decides to increase its use of financial leverage, it must call its old bonds and issue new ones with a 12% coupon. If it decides to decrease its financial leverage, it will call in its old bonds and replace them with new 8% coupon bonds. The firm will sell or repurchase stock at its new equilibrium price to complete the capital structure change.The firm pays out all earnings as dividends; hence, its stock is zero growth stock. Its current cost of equity, rs, is 14%. If it increases financial leverage, rs will be 16%. If it decreases financial leverage, rs will be 13%.Calculate the firm’s WACC and total corporate value under each capital structure.Please show all work and explain fully.
Dairy Corp. has a $20 million bond obligation outstanding and a coupon rate of 8%. Dairy Corp. has the ability to buy back the debt at 7% above par and issue new debt at 6.5%, so it is considering refunding this bond. Assume the underwriting cost for the old issue was $100,000 and the new issue is $200,000, with a tax rate of 40%. What is the net cost of call premium?
Adler Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2008, the first year of the corporation’s existence:Sold 5,000 shares of common stock for $18 per share.Issued 5,000 shares of common stock in exchange for a patent valued at $100,000.At the end of the Adler’s first year, total paid-in capital amounted toa. $40,000.b. $90,000.c. $100,000.d. $190,000.
Mary is cutting weeds at her home. She is unable to trim some weeds she finds, because they grew between the rocks, so she removes the protective guard on the weed trimmer and trims the weeds. There are no warnings on the weed trimmer advising against removing the guard. She hits a rock, which is thrown to onto her neighbor’s property, hitting her neighbor in the eye and causing permanent damage.
What kind of tort claim(s) does the neighbor have?
Who are the possible defendants?
(100 Words)
The Madoff Ponzi scheme and the resulting conviction for securities fraud and other felonies. What does this tell you about business ethics and the need for criminal penalties in order to regulate business?
(100 Words)
O.J. Simpson was found not guilty of the murders of Nicole Brown and Ronald Goldman. Despite the verdict, the families of Brown and Goldman have brought a wrongful death suit against Simpson. Discuss why the double jeopardy clause of the Fifth Amendment does not protect Simpson from this wrongful death suit. (100 Words)
The rationale for granting business organizations intellectual property rights. (100 Words)
The ethics governing employment non-disclosure agreements or covenants not to compete. (100 Words)
The elements of a Non-Disclosure Agreement (NDA) and unilateral vs. mutual NDAs. (100 Words)
Which of the following regarding the (core deposits / assets) ratio is true?
A high ratio is generally better because it is safe for a bank to rely on its core deposits as a source of funding.
A high ratio means the bank relies more on other sources of funding like borrowed funds.
A low ratio generally means low liquidity risk.
A low ratio shows that a bank uses its core deposits to supply loans and this is good because core deposits are insured by the FDIC.
None of the above.
“Business Analytics” Please respond to the following:
1pg Case Study- Due tomorrow
I want you brief (complete all 6 parts) the Supreme Court case Mach Mining v. EEOC that is linked Attached)
An example is attached too.
You should solely rely on your interpretation of the case and not use outside resources !! This is run through Vericite.
