Design the logic in pseudocode for Bugz App software company that sells a software package
as follows.
1. The retail price of the package is $99
2. Quantity discounts are given on purchases of 10 or more units as follows The program
must allow the user to enter the customer’s name and number of units purchased, and
output the original cost of the units purchased, the percentage discount given, the dollar
amount of the discount given, and the final cost after discount.
1. If the customer purchases up to 19 units, they receive a discount of 20%
2. 20 to 49 units – discount of 30%
3. 50 to 99 units – discount of 40%
4. 100 or more units – discount of 50%

Suppose that Coca-Cola is considering a new capital budgeting project. The project will use debt with maturities of 15 years. To determine the cost of debt for the project, an analyst at Coca-Cola looks at currently trading Coca-Cola debt. The analyst is looking at a Coke bond that trades today for $984.00. This bond has an annual coupon rate of 8.00%, face value of $1,000, and will mature in 15 years. The marginal tax rate for Coca-Cola is 38.00%.

What is the after-tax cost of debt for Coca-Cola?

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

The Behavioral Risk Factor Surveillance System (BRFSS) is an annual telephone survey designed to identify risk factors and report emerging health trends in the population of adults in the U.S. The following table summarizes one variable for the respondents.

(a) (1 point) What proportion of the individuals in the survey reported good health? Report the proportion to four decimal places.
(b) (1 point) Suppose that the standard error for the proportion in (a) is 0.0032 and a normal model may reasonably be used. Create a 99% confidence interval for the proportion of U.S. adults who report their health status as good. (Be careful not to mix up percents and proportions in this question.) Recall the general construction of the bounds of the confidence interval follows the formula: point estimate±z∗·SE.
(c) (1 point) Write a sentence that interprets your confidence interval in the context of the data.
(d) (1 point) If you were to construct a 95% confidence interval instead of the 99% CI in (b), determine one thing that would change in your construction.
(e) (1 point) If you were to construct a 95% confidence interval instead of the 99% CI in (b), determine one thing that would stay the same in your construction.

ABC Company’s fiscal year ends June 30. The company began construction of a new manufacturing plant on December 1, 2017. On this date, the company had the following transactions:

        Excavation work began during the first week in December with payments made to the contractor as follows:

        The building was completed on June 30, 2018 – the last day of the company’s fiscal year.

To finance construction, ABC borrowed $600,000 (due in 10 years, 8%, payable annually on December 1) from the bank on December 1, 2017. The company had no other loans outstanding.

Calculate the weighted average accumulated expenditures.

Calculate avoidable interest.

Calculate actual interest.

Prepare a schedule indicating the amount of interest to be capitalized.

Using the attached T-account template, prepare the entry to recognize each of the cash transactions indicated above and the recognition of the completion of the construction project.

Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams expects to manufacture and sell 55,500 parts in the coming year. While the demand for Williams’s part has been growing in the past 2 years, management is not only aware of the cyclical nature of the automobile industry, but also concerned about market share and profits during the industry’s current downturn.

Required:

1. Determine the price for the part using a markup of 39% of full manufacturing cost.

2. Determine the price for the part using a markup of 20% of full life-cycle cost.

3. Determine the price for the part using a desired gross margin percentage to sales of 40%.

4. Determine the price for the part using a desired life-cycle cost margin percentage to sales of 27%.

5. Determine the price for the part using a desired before-tax return on investment of 14%.

6. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5.

Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 18,000 T-shirts at $21 each in the coming year. Product costs include:

Variable selling expense is the redemption of a coupon, which averages $1.05 per T-shirt; fixed selling and administrative expenses total $11,000.

Required:

1. Calculate the following values:
Round dollar amounts to the nearest cent and round ratio values to three decimal places (express the ratio as a decimal rather than a percentage).

2. Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If required, round your per unit answers to the nearest cent.

3. What if the per unit selling expense increased from $1.05 to $2.25? Calculate new values for the following:
Round dollar amounts to the nearest cent and round ratio values to four decimal places (express the ratio as a decimal rather than a percentage):

Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 10,000 T-shirts at $24 each in the coming year. Product costs include:

Direct materials per T-shirt $8.40
Direct labor per T-shirt $1.68
Variable overhead per T-shirt $0.72
Total fixed factory overhead $40,000

Variable selling expense is the redemption of a coupon, which averages $1.20 per T-shirt; fixed selling and administrative expenses total $15,000.

Required:

1. Calculate the following values:
Round dollar amounts to the nearest cent and round ratio values to three decimal places (express the ratio as a decimal rather than a percentage).

a. Variable product cost per unit $
b. Total variable cost per unit $
c. Contribution margin per unit $
d. Contribution margin ratio
e. Total fixed expense for the year $

2. Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If required, round your per unit answers to the nearest cent.

Super-Tees Company
Contribution-Margin-Based Operating Income Statement
For the Coming Year
Total Per Unit
$ $

$ $

$

3. What if the per unit selling expense increased from $1.20 to $2.55? Calculate new values for the following:
Round dollar amounts to the nearest cent and round ratio values to four decimal places (express the ratio as a decimal rather than a percentage):

a. Variable product cost per unit $
b. Total variable cost per unit $
c. Contribution margin per unit $
d. Contribution margin ratio
e. Total fixed expense for the year $

1. The total book value of WTC’s equity is $13 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 9%. The firm’s bonds have a face value of $9 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 6%, and the firm’s tax rate is 40%. What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC=

2. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,140. If the firm’s tax bracket is 35%, what is its percentage cost of debt? Assume a face value of $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

3. Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $12 per share, and sells for $80. The corporate tax rate is 35%. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.) Cost of preferred stock =

4. Reactive Power Generation has the following capital structure. Its corporate tax rate is 40%.

What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Ignacio, Inc., had after-tax operating income last year of $1,198,000. Three sources of financing were used by the company: $1 million of mortgage bonds paying 4 percent interest, $4 million of unsecured bonds paying 6 percent interest, and $11 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent.

Required:

1. Calculate the after-tax cost of each method of financing. Enter your answers as decimal values rounded to three places. For example, 4.36% would be entered as ".044".

2. Calculate the weighted average cost of capital for Ignacio, Inc. Round intermediate calculations to four decimal places. Round your final answer to four decimal places before converting to a percentage. For example, .06349 would be rounded to .0635 and entered as "6.35" percent.

____ %

Calculate the total dollar amount of capital employed for Ignacio, Inc.

$ ____

3. Calculate economic value added (EVA) for Ignacio, Inc., for last year. If the EVA is negative, enter your answer as a negative amount.

$ _____

Is the company creating or destroying wealth?

(CREATING/DESTROYING)

4. What if Ignacio, Inc., had common stock which was less risky than other stocks and commanded a risk premium of 5 percent? How would that affect the weighted average cost of capital?

(HIGHER/LOWER/UNAFFECTED)

What is the new EVA? In your calculations, round weighted average percentage cost of capital to four decimal places. If the EVA is negative, enter your answer as a negative amount.

$ ______

Ignacio, Inc., had after-tax operating income last year of $1,195,500. Three sources of financing were used by the company: $1 million of mortgage bonds paying 4 percent interest, $4 million of unsecured bonds paying 6 percent interest, and $11 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent.

Required:

1. Calculate the after-tax cost of each method of financing. Enter your answers as decimal values rounded to three places. For example, 4.36% would be entered as ".044".

2. Calculate the weighted average cost of capital for Ignacio, Inc. Round intermediate calculations to four decimal places. Round your final answer to four decimal places before converting to a percentage. For example, .06349 would be rounded to .0635 and entered as "6.35" percent.

%

Calculate the total dollar amount of capital employed for Ignacio, Inc.

$

3. Calculate economic value added (EVA) for Ignacio, Inc., for last year. If the EVA is negative, enter your answer as a negative amount.

$

Is the company creating or destroying wealth?

Destroying

4. What if Ignacio, Inc., had common stock which was less risky than other stocks and commanded a risk premium of 5 percent? How would that affect the weighted average cost of capital?
Lower

What is the new EVA? In your calculations, round weighted average percentage cost of capital to four decimal places. If the EVA is negative, enter your answer as a negative amount.

$