Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized 55,000 shares issued and outstanding $ 330,000 Paid-in capital in excess of par - Common 440,000 $ 770,000 Retained earnings 1,400,000 Total Stockholders' Equity $ 2,170,000 On December 31, Year 1, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share.

How will the issuance of the stock dividend affect the financial statements?

Unemployment compensation has been a benefit available to most American workers for many decades. This benefit is provided though a combination of State and Federal programs. Funding for these programs comes from taxes paid by businesses on their payrolls. Discussion and debate has been on going regarding the level of benefits that should be paid, the length of time that these benefits should be paid, and the relative ecomomic benefit that the payments ultimately have.

Please comment on unemployment benefits, unemployment taxes and related matters by considering the following questions:

1. If you are aware of situations where the unemployment benefit system has benefited someone, or a situation where it has been abused by someone, please describe the situation. You don't need to use specific names, places or businesses, but give us a general discussion of what you knew to be true.

2. Give your opinion as to why the situtation was either beneficial or abusive. Suggest ways that the system could have worked inorder to catch the people who were taking advantage of the situation.

3. Discuss whether you believe that the taxes paid by businesses are excessive (consider the % required and the level of payroll that is taxed). Do these taxes help encourage or discourage businesses from locating in our state?

Why do banks use swaps to manage their currency exposure in the foreign exchange market

1. You are currently paying $300 in interest on your credit cards annually. If, instead of paying interest, you saved this amount every year, how much would you accumulate in a tax-deferred account earning 7% over the next 10 years?

2.

What is the monthly payment for a $146500 thirty-year mortgage at 5% APR?

Describe the importance of a dividend. What are some of the advantages and disadvantages to the stock holder?

 Lawrence​ Industries' most recent annual dividend was ​$1.22 per share ​(D0equals$ 1.22​), and the​ firm's required return is 13​%. Find the market value of​ Lawrence's shares when dividends are expected to grow at 10​% annually for 3​ years, followed by a 6​% constant annual growth rate in years 4 to infinity.

Analyzing Operating Cash Flows (Direct Method)

Lincoln company owns no plant assets and reported the following income statement for the current year:

Calculate the net cash flow from operating activities using the direct method. show a related cash flow for each revenue and expense.

Compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Round answer to two decimal places.

Bond Value as Maturity Approaches

An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 8.4%. One bond, Bond C, pays an annual coupon of 11%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.4% over the next 4 years, what will be the price of each of the bonds at the following time periods? Assume time 0 is today. Fill in the following table. Round your answers to the nearest cent.

Problem 4-16 Future Value for Various Compounding Periods Find the amount to which $400 will grow under each of the following conditions. Round your answer to the nearest cent.

4% compounded annually for 5 years

4% compounded semiannually for 5 years

4% compounded quarterly for 5 years

4% compounded monthly for 5 years $

Find the present values of the following cash flow streams. The appropriate interest rate is 9%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0 = 0. Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.)

1. Stream A $  
   Stream B $  
   
2. What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent.
   Stream A $  
   Stream B $  

Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1; that is, they are ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.)

ode, press FV, and find the FV of the annuity due.)

1. $800 per year for 10 years at 8%.
   $  
   
2. $400 per year for 5 years at 4%.
   $  
   
3. $800 per year for 5 years at 0%.
   $  

Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

4. $800 per year for 10 years at 8%.
   $  
   
5. $400 per year for 5 years at 4%.
   $  
   
6. $800 per year for 5 years at 0%.
   $  

2.

Refer to Table 10-1, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 16 percent to 12 percent.
  

a. What is the bond price at 16 percent?
  

  
b. What is the bond price at 12 percent?
  

  
c. What would be your percentage return on investment if you bought when rates were 16 percent and sold when rates were 12 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
  

You want to buy a car, and a local bank will lend you $30,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 6%, with interest paid monthly.

What is the monthly loan payment?

What is the loan's EFF%?