QUESTION 15
The United Kingdoms of Dempsania, produces two goods, Single (S)
and Double (D) rainbows....
QUESTION 15
The United Kingdoms of Dempsania, produces two goods, Single (S)
and Double (D) rainbows. The price and quantities for the years
2015, 2016 and 2017 ate as follow:
Year
PD
QD
PS
QS
2015
6
200
4
400
2016
9
240
6
480
2017
12
264
8
528
Note: all answers should be rounded to the closest integer, i.e.
33.3 = 33 and 66.6 = 67
What is the growth rate in Nominal output for 2016., base year...
Welling Inc. has a target debt–equity ratio of 0.78. Its WACC is
9.7%, and the tax...
Welling Inc. has a target debt–equity ratio of 0.78. Its WACC is
9.7%, and the tax rate is 35%.
a. If the company’s cost of equity is 14%, what
is its pre-tax cost of debt? (Do not round intermediate
calculations. Round the final answer to 2 decimal
places.)
Cost of debt
%
b. If instead you know that the after-tax cost
of debt is 6.8%, what is the cost of equity? (Do not round
intermediate calculations. Round the final...
Before her death, Melanie McCarthy had written and sent or
otherwise delivered nine $3,000 checks intended...
Before her death, Melanie McCarthy had written and sent or
otherwise delivered nine $3,000 checks intended as gifts to various
relatives. None of the checks had been cashed prior to Melanie's
death. Melanie's son, Daniel, who was one of the administrators of
her estate, claimed that the Internal Revenue Service should not
levy taxes on the $27,000 still in Melanie's account to cover these
checks, because the checks were completed gifts. Is he right? Why
or why not?
Two polluting firms emit 200 tons of SO2 each, with
Marginal Abatement Costs given by MAC1=...
Two polluting firms emit 200 tons of SO2 each, with
Marginal Abatement Costs given by MAC1= 2X1 and MAC2= 3X2,
respectively. Xi represents the level of abatement for each firm i,
in tons.
The government wants to reduce total SO2 emissions by
30% and decides to impose a uniform cap on emissions, with each
firm receiving 140 allowances for free (firms don’t pay for
allowance).
a) In a first moment assume polluters are not allowed to
trade, so each firm...
A paired difference experiment yielded ??nD pairs of
observations. In each case described below, what is...
A paired difference experiment yielded ??nD pairs of
observations. In each case described below, what is the rejection
region for testing ?0: ?=2 against ??: ? > 2? Use ??=10.
(a) ??=49, ?=0.04
?>
(b) ??=9, ?=0.06
?>
(c) ??=13, ?=0.07
?>
Problem 16-8
The information below pertains to Vaughn Company for 2018.
Net income for the year...
Problem 16-8
The information below pertains to Vaughn Company for 2018.
Net income for the year
$1,230,000
8% convertible bonds issued at par ($1,000 per bond); each bond
is convertible into
30 shares of common stock
2,090,000
6% convertible, cumulative preferred stock, $100 par value;
each share is convertible
into 3 shares of common stock
3,830,000
Common stock, $10 par value
6,110,000
Tax rate for 2018
40%
Average market price of common stock
$25 per share
There were no...
1. A firm currently has 1,000,000 in total capital with 20% debt
and no preferred stock....
1. A firm currently has 1,000,000 in total capital with 20% debt
and no preferred stock. They pay 8% interest on debt, have a
250,000 EBIT and have 34% corporate tax rate. From the company's
perspective, what's the cash flow to shareholders?
a. 146,520
b. 154,440
c. 170,440
d. 174,520
2. A firm currently has 1,000,000 in total capital with 20% debt
and no preferred stock. They pay 8% interest on debt, have 250,000
EBIT and have 24% corporate tax...
Let’s return to Fredonia Brewery, the monopoly beer producer in
Nacogdoches. Suppose again that the pandemic,...
Let’s return to Fredonia Brewery, the monopoly beer producer in
Nacogdoches. Suppose again that the pandemic, followed by a plague,
followed by a zombie apocalypse has left Nacogdoches completely
isolated from the rest of the world. Demand for beer faced by
Fredonia is P = 15 − 0.33Q, and the marginal and average cost of
brewing and bottling beer is $1 per bottle.
(a) Find the profit maximizing price and quantity of beer; also
find the consumer surplus and the...
Use the following information for the next four (4) questions.
Bel Air Company provided the following...
Use the following information for the next four (4) questions.
Bel Air Company provided the following data for the current
year:
Sales - 10,000,000
Cost of goods sold-5,300,000
Operating Expense- 3,800,000
December 31
January 1
Preparing operating expense
1,000,000
700,000
Accounts Payable
1,350,000
1,200,000
Inventory
2,500,000
2,100,000
Accounts receivable
1,400,000
1,375,000
1. How much was the collections from sales?
2. What amount was paid to suppliers?
3. How much was paid for operating expense?
4. How much is the cash...
A U.S. investor can borrow 1,000,000 or 500,000 GBP. The spot rate
is $2.00/GBP, the one...
A U.S. investor can borrow 1,000,000 or 500,000 GBP. The spot rate
is $2.00/GBP, the one year forward rate is $2.02/GBP. The U.S. one
year interest rate is 14% and the one year British interest rate is
12%. Determine if there is a covered interest rate arbitrage
opportunity, and if so, clearly show each step involved in the
arbitrage opportunity. Show the total dollar profit. If you
determined that there is no arbitrage opportunity, describe why you
made that decision.