Consider again the market for a type of equipment used by fans of crafting.
As a reminder, before the tax:
Vertical intercept, demand curve: 80
Vertical intercept, supply curve: 50
P* = $60
Q* = 40
And after:
The tax makes the price paid by buyers rise to $70 and the price received by sellers to fall to $55. With the tax, only 20 units are sold.
Calculate consumer surplus BEFORE the tax is applied. Carefully follow all numeric instructions.
In: Economics
Indicate whether the following statements are "True" or "False" regarding the circumstances under which the cost of repairs to the damaged property can be used to measure the amount of a casualty loss. a. The repairs do not extend beyond the damage suffered. b. The repairs are necessary to restore the property to its condition immediately before the casualty. c. The value of the property after the repairs, as a result of the repairs, exceeds the value of the property immediately before the casualty. d. The amount spent for such repairs is not excessive.
In: Accounting
Alpha Corporation has earnings before interest and tax (EBIT)
per annum in perpetuity of $200,000. The tax rate is 30%. The firm
is funded $50,000 of debt and $150,000 of equity. The cost of
equity is 18% and the cost of debt is 6%.
Given the information above, what is the appropriate discount rate
if earnings after interest and before tax (EAIBT)is used to
calculate the equity value of the firm?
| A. |
20.79% |
|
| B. |
25.71% |
|
| C. |
18% |
|
| D. |
14.55% |
|
| E. |
None of the above |
In: Finance
The time until failure for an electronic switch has an exponential distribution with an average time to failure of 4 years, so that λ =
| 1 |
| 4 |
= 0.25. (Round your answers to four decimal places.)
(a)
What is the probability that this type of switch fails before year 3?
(b)
What is the probability that this type of switch will fail after 5 years?
(c)
If two such switches are used in an appliance, what is the probability that neither switch fails before year 7?
In: Statistics and Probability
In: Computer Science
Blossom Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
| 2020 | 2019 | ||||
| Number of common shares | 750,000 | 600,000 | |||
| Number of non-convertible, non-cumulative preferred A shares | 20,000 | 20,000 | |||
| Amount of 5% convertible bonds | $1,000,000 | $1,000,000 |
The following additional information is available.
| 1. | On July 31, 2020, Blossom Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020. | |
| 2. | Income before discontinued operations for 2020 was $1,700,000, and a loss from discontinued operations of $360,000 was recorded, net of applicable tax recovery. | |
| 3. | During 2020, dividends in the amount of $4 per share were paid on the preferred A shares. | |
| 4. | Each $1,000 bond can be converted into 25 common shares. | |
| 5. | There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share. | |
| 6. | Written warrants to purchase 10,000 common shares at $12.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020. | |
| 7. | The average market value of the common shares in 2020 was $10.00. | |
| 8. | Blossom’s tax rate is 20%. | |
| 9. | Blossom declared and paid a $5,000 dividend to common shareholders on June 1, 2020. |
Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.
| Weighted average number of common shares | Enter your answer in accordance to the question statement shares |
eTextbook and Media
Starting with the heading “Income from Continuing Operations,” prepare the bottom portion of the income statement for the year ended December 31, 2020. Assume that Blossom Corporation discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share amounts to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Blossom
Corporation Partial Income Statement December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020 |
||
| Income from Discontinued OperationsLoss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Continuing Operations | $ | |
| Net Income / (Loss)Loss from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing OperationsIncome from Discontinued Operations | ||
| Loss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsIncome from Continuing Operations | $ | |
| Basic earnings per share: | ||
| Loss from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsIncome from Continuing OperationsIncome from Discontinued Operations | $ | |
| Loss from Discontinued OperationsLoss from Continuing OperationsIncome from Continuing OperationsNet Income / (Loss)Income from Discontinued Operations | ||
| Income from Continuing OperationsLoss from Discontinued OperationsIncome from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss) | $ | |
| Diluted earnings per share: | ||
| Income from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing OperationsNet Income / (Loss)Loss from Discontinued Operations | $ | |
| Income from Continuing OperationsIncome from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsLoss from Discontinued Operations | ||
| Loss from Discontinued OperationsLoss from Continuing OperationsIncome from Continuing OperationsNet Income / (Loss)Income from Discontinued Operations | $ | |
In: Accounting
Crane Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
| 2020 | 2019 | ||||
| Number of common shares | 510,000 | 360,000 | |||
| Number of non-convertible, non-cumulative preferred A shares | 50,000 | 50,000 | |||
| Amount of 6% convertible bonds | $1,000,000 | $1,000,000 |
The following additional information is available.
| 1. | On July 31, 2020, Crane Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020. | |
| 2. | Income before discontinued operations for 2020 was $1,300,000, and a loss from discontinued operations of $300,000 was recorded, net of applicable tax recovery. | |
| 3. | During 2020, dividends in the amount of $4 per share were paid on the preferred A shares. | |
| 4. | Each $1,000 bond can be converted into 25 common shares. | |
| 5. | There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share. | |
| 6. | Written warrants to purchase 10,000 common shares at $7.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020. | |
| 7. | The average market value of the common shares in 2020 was $5.00. | |
| 8. | Crane’s tax rate is 20%. | |
| 9. | Crane declared and paid a $10,000 dividend to common shareholders on June 1, 2020. |
Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.
| Weighted average number of common shares | Enter your answer in accordance to the question statement shares |
eTextbook and Media
Starting with the heading “Income from Continuing Operations,” prepare the bottom portion of the income statement for the year ended December 31, 2020. Assume that Crane Corporation discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share amounts to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Crane
Corporation Partial Income Statement December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020 |
||
| Net Income / (Loss)Income from Discontinued OperationsLoss from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing Operations | $ | |
| Loss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsLoss from Discontinued OperationsIncome from Continuing Operations | ||
| Net Income / (Loss)Income from Discontinued OperationsIncome from Continuing OperationsLoss from Discontinued OperationsLoss from Continuing Operations | $ | |
| Basic earnings per share: | ||
| Loss from Continuing OperationsIncome from Discontinued OperationsIncome from Continuing OperationsNet Income / (Loss)Loss from Discontinued Operations | $ | |
| Loss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsIncome from Continuing Operations | ||
| Loss from Continuing OperationsLoss from Discontinued OperationsIncome from Continuing OperationsIncome from Discontinued OperationsNet Income / (Loss) | $ | |
| Diluted earnings per share: | ||
| Loss from Continuing OperationsIncome from Discontinued OperationsLoss from Discontinued OperationsNet Income / (Loss)Income from Continuing Operations | $ | |
| Income from Continuing OperationsNet Income / (Loss)Loss from Continuing OperationsIncome from Discontinued OperationsLoss from Discontinued Operations | ||
| Loss from Continuing OperationsLoss from Discontinued OperationsIncome from Discontinued OperationsIncome from Continuing OperationsNet Income / (Loss) | $ | |
eTextbook and Media
In: Accounting
for the company RITE AID add all calculation
1. Prepare a horizontal analysis of your company's Income Statement
over the past two years.
2. Calculate the following ratios for the most recent two years and
comment on the results of your ratio analysis. How do the results
for your company compare to industry averages?
a. Accounts receivable turnover: Note: Since credit sales
information will not be available in the 10-K reports for the
accounts receivable turnover, we will be using sales/net sales or
similar account instead of credit sales. Also, be sure to use the
average accounts receivable.
b. Profit margin
c. Return on assets: Be sure to use the average total
assets.
d. Times interest earned = (income before taxes + interest
expense)/interest expense. Note that income (or earnings) before
interest & taxes has the abreviation EBIT. Also, EBIT is
sometimes referred to as "Income from Operations."
only question 2 and information used from 2020 10k filing.
In: Accounting
Darren Banesuela, a married man, comes to you with a tax question. He wants to know what filing status he should use for the current tax year 2019 when he files his tax return before April 15, 2020. He has been estranged and separated from his wife for two years during their separation. Their separation is not amicable but very rancorous. This means they strongly dislike each other and cannot agree on anything. However, the two have yet to file for divorce; therefore, a final divorce decree will not be made before year-end. Darren’s wife, according to Darren, has been involved with another man for several months. Darren also tells you that he has two minor children with his wife and both children live with her 100% of the time. He sees his children occasionally when they visit him at his apartment but they never spend the night. What filing status should Darren claim?
Memo style response.
In: Accounting
Finance: Debt
*Please do not use Excel. If you could show working that would be amazing and appreciated. Thank you very much
1. A bond with a face value of $10,000 that matures in exactly seven years has a price of $10,494.63. The coupon rate is 4.2% p.a. and coupons are paid every six months. Which of the following figures is the closest to the yield to maturity? ( I know the answer is C but I do not know how to work that out)
(a) 4.2% p.a.
(b) 5.40% p.a
(c) 3.40% p.a.
(d) 1.70% p.a.
2. On the 1st October 2016, K.J Limited issued bonds with a maturity date of 1st October 2028. One K.J bond has a face value of $100,000 and the coupon rate is 4.50% p.a. with interest payable half-yearly. Assuming the market yield is 6% p.a. calculate the value of one bond:
(a) on the 1st October 2020.
(b) five years before maturity.
(c) one year before maturity.
In: Finance