Assume that today is December 31, 2019, and that the following information applies to Abner Airlines:

After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $550 million.
The depreciation expense for 2020 is expected to be $150 million.
The capital expenditures for 2020 are expected to be $450 million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 7% per year.
The required return on equity is 13%.
The WACC is 10%.
The firm has $208 million of non-operating assets.
The market value of the company's debt is $3.110 billion.
190 million shares of stock are outstanding.

Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations.

1.The population of India in the year 2000 was 1 billion and it increased exponentially at a rate of 1.6% per year. If the growth rate is maintained, what will be the population in the year 2020? If the growth rate is decreased to 1.2% per year from 2020 onwards and is maintained at that level, what will be the population in the year 2050? Assuming the average human exhales 2.3 pounds of carbon dioxide on an average day, what is the total amount of Carbon released in the atmosphere annually by human exhalation (in billion tonnes) around the year 2020?  

2.Calculate the suspended particulate concentration (in μg/m³) in a sample collected through a hi-vol. sampler: Weight of clean filter = 5.00 g, Weight of the filter after exposure for 24 hours = 5.38 g, Average air flow = 2000 m³ in 24 hours.   

8. German Company, PAS software is developing an ERP (Enterprise Resource Planning) system for sale to mid-size companies around the world. Software development started during 2018, during which time $45 million was incurred. During 2019, and additional $60 million was incurred, with $10 million of this incurred after technological feasibility of the new software had been established. Record the journal entry for the 2019 software development costs.

Refer back to question 8. Assume this product was released to customers in early 2020, and is assumed to have a 10-year useful life. Revenues from sale of the ERP system in 2020 were $30 million, and total expected revenues over the life of the product were $200 million. Record the journal entry for amortization of the capitalized software in 2020.

Computing EPS: Restricted Stock Awards

West Inc. granted 5,000 shares of restricted common stock shares at the beginning of 2020 to company managers that will vest after 4 years of service. Net income for the year is $360,000, and 250,000 common shares were outstanding the entire year. The fair value of the shares on January 1, 2020, is $25 per share. The average market price of common shares in 2020 is $25 per share.

a. Compute basic earnings per share.

b. Compute diluted earnings per share.

Note: Round per share amounts to two decimal places.

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines:

After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $450 million.
The depreciation expense for 2020 is expected to be $200 million.
The capital expenditures for 2020 are expected to be $350 million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 4% per year.
The required return on equity is 16%.
The WACC is 9%.
The firm has $190 million of non-operating assets.
The market value of the company's debt is $4.113 billion.
120 million shares of stock are outstanding.

Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $650 million. The depreciation expense for 2020 is expected to be $110 million. The capital expenditures for 2020 are expected to be $275 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 6% per year. The required return on equity is 16%. The WACC is 9%. The firm has $201 million of non-operating assets. The market value of the company's debt is $5.596 billion. 110 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent. $

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $400 million. The depreciation expense for 2020 is expected to be $190 million. The capital expenditures for 2020 are expected to be $350 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 15%. The WACC is 9%. The firm has $199 million of non-operating assets. The market value of the company's debt is $2.440 billion. 90 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent

5. C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company stock. So on January 8, 2021 C bought back the stock for $36,000.

a. How much of the loss may C deduct on his 2020 return?

b. What is C’s basis in the XYZ Company stock that was purchased on January 8, 2021?

C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company stock. So on January 8, 2021 C bought back the stock for $36,000.

How much of the loss may C deduct on his 2020 return?

What is C’s basis in the XYZ Company stock that was purchased on January 8, 2021?

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines:

After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $500 million.
The depreciation expense for 2020 is expected to be $190 million.
The capital expenditures for 2020 are expected to be $225 million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 5% per year.
The required return on equity is 15%.
The WACC is 9%.
The firm has $202 million of non-operating assets.
The market value of the company's debt is $3.462 billion.
230 million shares of stock are outstanding.

Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.

$