The president of ABC made this statement in the company’s annual report: “ABC’s primary goal is to increase the value of our common stockholders’ equity. Later in the report, the following announcements were made:

a) The company contributed $1 million to the symphony orchestra in Chicago, IL, its headquarters city.

b) The company is spending $800 million to open a new plant and expand operations in South Vietnam. No profits will be produced by the Vietnamese operation for four years, so earnings will be depressed during this period versus what they would have been had the decision not been made to expand in South Vietnam?

c) The company holds about half of its assets in the form of U.S. Treasury bonds, and it keeps these funds available for use in emergencies. In the future, though, ABC plans to shift its emergency funds from Treasury bonds to common stocks.

Discuss how ABC’s stockholders might view each of these actions and how the actions might affect the stock price.

For each of the following transactions, explain briefly why they would or would not be counted in the GDP of the United States. In your explanation, point out what component(s) or element(s) of GDP change and why. a) German auto producer Daimler AG builds a van factory in South Carolina. b) You buy the latest Samsung Galaxy J2 cell phone produced at a factory in South Korea. c) You baby-sit for your uncle’s children and he gives you $25 for a job well done. d) US auto producer Ford builds a factory in Puebla, Mexico. e) You buy a fresh loaf of bread at your local bakery. f) A Chrysler dealership in Utah has 20 unsold new 2019 model cars at the end of 2019. g) You marry your accountant and (s)he then takes care of your tax returns for free.  

The South Division of Wiig Company reported the following data for the current year.

Top management is unhappy with the investment center’s return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action.

(a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.)

(b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%.)

Return of Investment

Action 1

Action 2

Action 3

Cows are munching down zucchini, yellow squash and cabbage that Southern Valley Fruit and Vegetable farms grew and picked for restaurants and other institutions.

It’s one way the company is trying to make use of the glut of south Georgia vegetables caused by the closure of dining spots, schools and other big buyers. South Georgia farmers ship food from Florida to Canada, but the closures cost them 40- to 50% of their market. Growers are caught between being unable to sell all their crop and selling what they can in a flooded market with dropping prices. [Atlanta Journal and Constitution, May 3, 2020]

1. Draw a demand and supply diagram that illustrates the changes taking place in the vegetable market. Explain any changes you draw.
2. Assume vegetable farms operate in a perfectly competitive market. Draw a cost and revenue diagram that shows the effect on farms profits of “dropping prices"

Please don't copy other Chegg answers, thank you!

Problem 18-5 Beta and Leverage

Problem 10-12 Acquisition costs; lump-sum acquisition; noninterest-bearing note; interest capitalization [LO10-1, 10-2, 10-3, 10-7]

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,160,000. San Antonio paid $380,000 and signed a noninterest-bearing note requiring the company to pay the remaining $780,000 on March 28, 2020. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $38,000 were paid at closing.
   
During April, the old building was demolished at a cost of $88,000, and an additional $68,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

San Antonio borrowed $6,300,000 at 10% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $780,000. The fair values of the equipment and the furniture and fixtures were $572,000 and $308,000, respectively. In December, San Antonio paid a contractor $375,000 for the construction of parking lots and for landscaping.
  
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.
2. How much interest expense will San Antonio report in its 2018 income statement?

Due to COVID-19 impact, Watson Co becomes insolvent and placed into voluntary liquidation by its directors. Dissolve liquidators have been appointed as the company liquidators. On the winding up of the Watson Co, Dissolve liquidators have started distributions and Paul as ex-shareholder of Watson Co received $7,200 from the liquidators, which was inclusive of $3,000 unfranked dividend pursuant to the provision of Income Tax Assessment Act 1963, section 47(1). This distribution to Paul was from his $4,000 investment in the shares of Watson Co on 2nd February 2019. Required: With reference to relevant provisions of ITAA 97 and ITAA 36, critically analyze the tax consequences

a) The J = 0 to J =1 rotational transition of the CO molecule occurs at a frequency of 1.15×10¹¹ Hz. Use this information to calculate the moment of inertia of the molecule about its center of mass.

b) The CO molecule shows a strong absorption line at the frequency 6.42×10¹³ Hz due to transition from thev= 0 to the v = 1 vibrational levels. Calculate the effective force constant for this molecule.

c) Why does CO molecule have pure rotational transitions while O₂ doesn’t?

d) Obviously, CO does rotation and vibration simultaneously. What is the actual frequency for this rotational-vibrational transition of a) and b)? show your work.