[ad_1]

Get college assignment help at uniessay writers 16-2. Kade Gulliver turned 20 years old today. His grandfather established a trust fund that will pay Mr. Gulliver $60,000 on hi next birthday. However, Mr. Gulliver needs money today to start his college education. His father is willing to help and has agreed to give Mr. Gulliver the preset value of the future cash inflow, assuming a 10 percent rate of return. a. Use a preset value table to determine the amount of cash that Mr. Gulliver’s father should give him. b. Use an algebraic formula to prove that the preset value of the trust fund (the amount of cash computed in problem a) is equal to its $60,000 future value. 16-3. Quintana Pena expects to receive a $500,000 cash benefit when she retires five years from today. Ms. Pena’s employer has offered an early retirement inventive by agreeing to pay her $300,000 today if she agrees to retire immediately. Ms. Pena desires to earn a rate of return of 12 percent. a. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Pena accept her employer’s offer? b. Identify the factors that cause the present value of the retirement benefit to be less than $500,000. 16-5. Lake Shuttle Inc. is considering investing in two new vans that are expected to generate combined cash inflows of $20,000 per year. The vans’ combined purchase price is $65,000. The expected life and salvage value of each are four years and $15,000, respectively. Lake Shuttle has an average cost of 14 percent. a. Calculate the net present value of the investment opportunity Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted

5. A project has an initial requirement of $310,000 for fixed

5. A project has an initial requirement of $310,000 for fixed assets and $62,000 for net working capital. The project sits on a parcel of land purchased 8 years ago for $392,000. At that time, the firm invested an additional $127,000 for improvements. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $155,000. All of the networking capital will be recouped at the end of the project. The annual operating cash flow is $345,000 and the discount rate is 18%. Identify all numbers and show all work. What is the project’s net present value if the tax rate is 34%?

4. Use the information below on Milner Sisters Inc. to answer

4. Use the information below on Milner Sisters Inc. to answer the problems below: Common Stock Milner Sisters has 50,000 shares of common stock outstanding at a market price of $28 a share. Currently, the firm has a beta of 1.13. The risk-free rate is 3% and the market rate of return is 10.5 %. Debt Outstanding bonds mature in 13 years; have a total face value of $750,000; a face value per bond of $1,000 and a market price of $1,011.92 each. The bonds pay 7% coupons, semi-annually. The tax rte is 34%. Preferred Stock The firm has 2,000 shares of 6% preferred stock outstanding at a price of $54 a share. The preferred stock has a par value of $100. What is Milner’s WACC? Identify all numbers and show all work.

3. What is the expected return on a portfolio which is

3. What is the expected return on a portfolio which is invested 20% in Stock A, 50% in Stock B and 30% in Stock C? Identify all numbers and show all work.

Sampson Company’s accounting records show the following for the year ending

Sampson Company’s accounting records show the following for the year ending on December 31, 2010.Purchase Discounts $ 5,600 Freight-in 7,800 Purchases 200,010 Beginning Inventory 23,500 Ending Inventory 28,800 Purchase Returns 6,400 Using the periodic system, the cost of goods purchased is

Nutt Corporation projects that it will have taxable income for the

Nutt Corporation projects that it will have taxable income for the year of $400,000 before incurring any interest expense. Assume Nutt’s tax rate is 35 percent. Required: (a) What is the amount of the double-tax on the $400,000 of pre-interest expense earnings if Hazel, Nutt’s sole shareholder, lends Nutt Corporation $30,000 at the beginning of the year, Nutt pays Hazel $8,000 of interest on the loan (interest is considered to be reasonable), and Nutt distributes all of its after-tax earnings to Hazel? Assume her ordinary marginal rate is 35 percent and dividend tax rate is 15 percent.

Shortage Of Working Capital

Shortage Of Working Capital

Morgan’s Rating Service has the following amounts at December 31: Common

Morgan’s Rating Service has the following amounts at December 31: Common Stock, $1 par, 500 shares issued, $500; Paid-in Capital in Excess of Par Value, $10,000; Retained Earnings, $7,000; and Treasury Stock, 20 shares, $450. Prepare the stockholders’ equity section of the balance sheet. List three reasons why Morgan’s Rating Service may have Treasury Stock.

Homework WK7

Homework WK7

Explain how Ferguson

Explain how Ferguson

on june 30 gomez corporation discountinued its operations in mexico. on

Get college assignment help at uniessay writers on june 30 gomez corporation discountinued its operations in mexico. on septembr 1 gomez disposed o the mexico facility at a pretax loss of $680,000. the applicable tax rate is 25%. show the discontinued operations section of gomez’s income statement.

Specific identification, assuming that the March 14, 2007, sale was comprised

Specific identification, assuming that the March 14, 2007, sale was comprised of 580 units from the beginning inventory and 870 units from the purchase of January 30, 2007. Assume that the sale of August 31, 2007, was comprised of 1,220 units from beginning inventory, and 680 units from the purchase of May 1, 2007.

The information below pertains to July Production at Porter Company’s paint

The information below pertains to July Production at Porter Company’s paint factory, which produces paints for household interiors (see attached spreadsheet) Using the weighted average method, determine the number of equivalent units of production for materials and conversion during july.

Prepare a November 30 balance sheet in proper form for Green

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

Bell, by telegram to Major Corp., ordered 10,000 yards of fabric,

Bell, by telegram to Major Corp., ordered 10,000 yards of fabric, first quality, 50% wool and 50% cotton. Major accepted the order and packed the fabric for shipment. In the process, it discovered that one-half of the fabric packed had been commingled with fabric that was 30% wool and 70% cotton. Because Major did not have any additional 50% wool fabric, it decided to send the shipment to Bell as an accommodation. The goods were shipped and, later the same day, Major wired Bell its apology, informing Bell of the facts and indicating that the 5,000 yards of 30% wool would be priced at $2 a yard less. The carrier delivering the goods was destroyed on the way to Bell. Who bears the risk of loss? 6. A. Major, because the order was not a signed writing. B. Bell, because Bell has title to the goods. C. Major, because it shipped goods that failed to conform to the contract. D. Bell, if the shipping terms were FOB Bell’s place of business.

Management may choose any inventory costing method it desires as long

Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with (i.e. matches) the physical movement of goods in the company.

How does GAAP need to change to accommodate today’s dynamic business

How does GAAP need to change to accommodate today’s dynamic business environment?

Ratio of net sales to total assets The Home Depot reported

Ratio of net sales to total assets The Home Depot reported the following data (in millions) in its financial statements: a. Determine the ratio of net sales to average total assets for The Home Depot for 2007 and 2006. Round to two decimal places. 2007: 2006:

Noah and Joan Arc tax return, course is income tax fundamentals

Noah and Joan Arc tax return, course is income tax fundamentals

The course is income tax fundamentals

The course is income tax fundamentals

Grayson Bank agrees to lend the Trust Company $100,000 on January

Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 9%, 9-month note. What is the adjusting entry required if Trust Company prepares financial statements on June 30

The post 16-2. Kade Gulliver turned 20 years old today. His grandfather established appeared first on uniessay writers.

[ad_2]

Source link