General Electric has 10 million shares of common stock with a book value of $1 per share and a current market price of $25 per share. The company’s beta is 1, the risk free rate is 3% and the market rate is 9%. The firm’s outstanding bonds have a total face value of $75 million, a maturity of 10 years, a 4% annual coupon, and are selling currently for 101% of par value. The marginal tax rate is 35%. What discount rate should General Electric use to evaluate its projects? (You MUST show all your work) 21. What is the weight of equity? A) 57.3% B) 42.7% C) 76.7% D) 23.3% 22. What is the weight of debt? A) 57.3% B) 42.7% C) 76.7% D) 23.3% 23. What is the rate of equity? A) 9% B) 3% C) 12% D) 4.5% 24. What is the rate of debt? A) 4.0% B) 3.8% C) 1.9% D) 7.6% 25. What is the discount rate for the firm? A) 7.5% B) 4.1% C) 3.8% D) 2.8%

Budgeting Direct Material

The Jung corporation's budget calls for the following production

Each unit of production requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30 percent of that quarter's direct material requirements.

required

Compute budgeted direct materials purchases for the third quarter

You have purchased 30 shares of Games Inc. for $ 15 and 120 shares of Thrones Co for 721. Over the following three quarters, the companies earned the returns below Quarter 1 Quarter 2 Quarter 3 Games Inc. 20% 46% 44% Thrones Co. -20% -39% -12% What was the buy-and-hold return on your portfolio? Provide your answer in percent, rounded to two decimals, omitting the % sign.

J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year:

Experience has shown that 35 percent of sales are collected in the month of sale, 65 percent are collected in the following month, and 0 percent are never collected.

Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).

Smith Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:
                                                                                         Units                   Direct Labor
Work-in-process inventory, January 1                                   100                    $50,000
Started during the quarter                                                  500
Completed during the quarter                                               400
Work-in-process inventory, March 31                             200
Costs added during the quarter                                                              $720,000
Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs.

Required

What is the equivalent unit of production using the weighted-average unit cost inventory valuation method?

Complete section 1 on form 941 with the following information:

# of employees for pay period that include September 12 – 14 employees

Wages paid third quarter - $79,750.17

Federal income tax withheld in the third quarter - $9,570.17

Taxable social security and Medicare wages - $79,750.17

Total tax deposits for the quarter $21,771.83

Complete sections 2, 3, 4, and 5 with the following information:

Cruz Company is a monthly depositor with the following monthly tax liabilities for this quarter:

July                 $7,193.10

August           $7,000.95

September     $7,577.78

State unemployment taxes are only paid to California. The company does not use a third-party designee and the tax returns are signed by the president, Carlos Cruz (Phone: 916-555-9739).

Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the beneficiary (Benno) can choose any one of the following options:

a) 55,000 immediate cash

b) 4,000 every 3 months payable at the end of each quarter for 5 years

c) 18,000 immediate cash and 1,800 every 3 months for 10 years, payable at the beginning of

each 3-month period

d) 4,000 every 3 months for 3 years and 1,500 each quarter for the following 25 quarters, all

payments payable at the end of each quarter

Using the interest rate of 2.5 per quarter, compounded quarterly, which option would you recommend

that Benno exercise?

Terrible Two's Inc. combines its operating expenses for budget purposes in a selling and

administrative expenses budget. For the last six months of 2017, the following data are

available:

1. Sales: 31,500 units in Quarter 3; 51,500 units in Quarter 4

2. Variable costs per dollar of sales; sales commissions 2.40%; delivery expenses 3.45%;

and advertising 4.55%

3. Fixed costs per quarter: sales salaries $16,000; office salaries $3,050; depreciation

$4,350; insurance $2,500; utilities $400, and repairs $250

4. Unit selling price; $24.25

Could you help me prepare a selling and administrative expenses budget by quarter for the last six months of 2017?