On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $42,309,236. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

5. Compute the price of $42,309,236 received for the bonds by using the present value tables in Exhibit 5 and Exhibit 7. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences.

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $73,100,469. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

5. Compute the price of $73,100,469 received for the bonds by using the present value tables Exhibit 5 and Exhibit 7.

Walmart has an interest in monitoring the average back-to-school spending for grade-school students year to year. Every year the back-to-school spending data is published by the National Retail Federation. The following table shows the average back-to-school spending of households randomly sampled in 2016 and 2017 along with the population standard deviations and sample sizes for each sample. 2016 2017 Sample mean $606.40 $655.27 Sample size 35 38 Population standard deviation $160 $173 a. State the correct null and alternative hypotheses. b. Perform a hypothesis test using α = 0.10 to determine if the average household back-to-school spending in 2016 was different than it was in 2017. c. Use Confidence Interval to test this hypotheses

Cougar Athletics is soliciting bids on a 3-year contract to produce 3,000 t-shirts per year to be given away at athletic events. You have decided to bid on the contract. It will cost you $3 per shirt in variable costs (buying plain t-shirts and paying an employee to imprint them) and $5,000 per year in fixed costs. A t-shirt printing machine will cost $7,500. The machine will be depreciated to zero over its 3-year life and it will not have any salvage value. There are no net working capital implications for the project. If your tax rate is 20% and your required return on this project is 10%, how much would you bid for the contract? State your answer in the total price, not the per-unit price. Now suppose you are offered the deal in question 1 for a price of $6 per shirt. What is the project’s NPV?

This is answer but I do not know how to get this NPV.

Sales 18000-VC 9000-FC 5000-D 2500=EBIT 1500 -Taxes 300=NI 1200 OCF 3700 NPV $1,701.35

Milea Inc. experienced the following events in Year 1, its first year of operations:

1. Received $16,500 cash from the issue of common stock.
2. Performed services on account for $45,000.
3. Paid the utility expense of $1,250.
4. Collected $32,410 of the accounts receivable.
5. Recorded $7,750 of accrued salaries at the end of the year.
6. Paid a $1,350 cash dividend to the stockholders.

Prepare the statement of changes in stockholders’ equity.

Prepare the balance sheet.
   Prepare the balance sheet.
  

Suppose a 10-year zero-coupon bond (zero) is trading spot at 5% and a 20-year zero is trading spot at 7%. In lectures (L4.9) we proved that the 10 year forward rate for a 10 year zero must be 0.0904 (annual compounding). All are risk free.

If the rates are not 0.0904 for the forward you can make a free profit by using arbitrage. Suppose you have $0 dollars today but are allowed to sell and buy $100,000 worth of zero coupon bonds (and commit to the forward 10 year zero coupon bond using ​any​ cash you have ​- or need to reborrow​ - after 10 years from your initial trades).
(a) What trades do you execute if the forward rate is 8% - report your profit. (b) What trades do you execute if the forward rate is 10% - report your profit. (c) Comment on why the forward rate must be 9.04% in light of your results.

6. On July 1 of year 1, Riverside, Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had a basis of $1,300,000 in goodwill for both book and tax purposes. At the end of year 1, RC determined that the goodwill had not been impaired during the year. In year 2, however, RC concluded that $200,000 of the goodwill had been impaired, and they required RC to write down the goodwill by $200,000 for book purposes. What book-tax difference associated with its goodwill should RC report in year 1? (Enter a favorable difference as a positive and an unfavorable as a negative)

7. On July 1 of year 1, Riverside, Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had a basis of $1,300,000 in goodwill for both book and tax purposes. At the end of year 1, RC determined that the goodwill had not been impaired during the year. In year 2, however, RC concluded that $200,000 of the goodwill had been impaired, and they required RC to write down the goodwill by $200,000 for book purposes. What book-tax difference associated with its goodwill should RC report in year 2? (Enter a favorable difference as a positive and an unfavorable as a negative)

Zachary Company started year 1 with $345,000 in its cash and common stock accounts. During year 1, Zachary paid $258,750 cash for employee compensation and $79,350 cash for materials.

Required

Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Zachary used the labor and materials to make 1,500 chairs. Further, assume that Zachary sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement.

Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Zachary used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statement.

Find the net single premium for a 10-year life annuity due of 25.000€ per year (starting at the signature of the contract) issued to a female at her 60th birthday, using an interest rate of 3.5%/year.

Mortality rate can be random. The point is the calculation, excluding any other (rates, numbers etc.) Just working with what is given.

The current nominal market interest rate for a four-year car loan is 8 percent per year. At the time the loan is made the anticipated annual rate of inflation over the four year period is 3 percent per year. If the actual rate of inflation over the four year period turns out to be 5 percent per year then A. the real rate of interest actually earned by the lender will be 5 percent per year. B. the real rate of interest earned by the lender will be 3 percent per year. C. a borrower who borrowed money to buy a car at the 8 percent nominal rate will gain at the expense of the lender. D. both B and C E. both A and C