Classof1: 424 books

Ravine Corporation purchased 30 percent ownership of Valley Industries for $90,000 on January 1, 20X6, when Valley had capital stock of $240,000 and retained earnings of $60,000. The following data were reported by the companies for the years 20X6 through 20X9:

Emco Products has a present capital structure consisting only of common stock (10 million shares).  The company is planning a major expansion.  At this time, the company is undecided between the following two financing plans (equity and debt financing)Calculate the EBIT-EPS Indifference point.

Perform a financial analysis for a project using the format provided .Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $100,000 in Year 1 and $25,000 each year in Years 2,3, and 4.  Estimated benefits for $0 in Year 1 and $80,000...

"Mike’s utility of consumption and leisure is U(C, L) =C*L, so that his marginal rate of substitution is C/L. There are 168 hours in the week and he earns $10 an hour. a) What is his optimal combination of C and L? b) If the government starts a welfare policy that pays B to all non workers...

"1. (3%) What is the equation for the equilibrium value of Ap? 2. (2%) What is the MLR? k? 3. (2%) What is the equation for the IS curve? 4. (2%) What is the equation for the LM curve? "

The graphs below show the market for four different goods. The numerical subscripts denote the analytic sequence of the demand curves: 0 denotes the original curve, and 1 denotes the new curve. Assume that real income has increased by 10 percent. You are to determine what kind of good (based on income elasticity) is represented in each market.

Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums. It operates three manufacturing facilities; in the U.S., in South America, and in the Philippines. It contracts with local distributors to handle sales and service issues...

Ten years ago I bought a 4% bond that had a face value of $10,000 for $9,300. The bond paid semi-annual interest and I would like to sell it now. How much would I need to receive for the bond if I wish to make an interest rate of 5% compounded semiannually on my investment?

"Southland Industries has $60,000 at 16% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5 per share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compare Earnings per share (EPS) for the following levels of EBIT: a) $24,600 b) $30,600 c) $35,000 "

"Calculate the income elasticity of demand for the product below, using average values for incomes and quantities. a. Is the demand for this product income elastic or inelastic? b. Would you consider this commodity a luxury or a necessity? "

"Now suppose the family decides to have only 3 children.  What is the probability that:             [1] No children will have TSD?             [2] At least 1 child will be born...

"a) How much does the firm currently earn per share? b) What proportion of the firm does Warren currently own? c) What proportion of the firm will Warren own after the stock dividend? d) At what market price would you expect the stock to see after the stock dividend? Explain your answer e) Discuss...

Using the data in these abbreviated income statements, prepare a vertical analysis.

Affirmative Action is both a legal and emotional issue affecting employees and employers.  Develop as many arguments as you can both supporting and opposing affirmative action as an employer policy.  (Your assignment should include a bulleted list of arguments both supporting and opposing.) ...