In: Physics
Currently, Atlas Tours has $6.76 million in assets. This is a peak six-month period. During the other six months, temporary current assets drop to $570,000.
| Temporary current assets | $1,370,000 | |
| Permanent current assets | 2,140,000 | |
| Capital assets | 3,250,000 | |
| Total assets | $6,760,000 | |
Short-term rates are 5 percent. Long-term rates are 7 percent.
Annual earnings before interest and taxes are $1,250,000. The tax
rate is 38 percent.
a. If the assets are perfectly hedged throughout
the year, what will earnings after taxes be? (Enter answers
in whole dollar, not in million.)
Earnings after taxes $
b. If short-term interest rates increase to 7 percent when assets are at their lowest level, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6–8
Earnings after taxes $
In: Accounting
Consider a weak acid-strong base titration in which 25 mL of 0.120 M of acetic acid is titrated with 0.120 M of NaOH.
a) Calculate the pH of the acetic acid solution BEFORE addition of NaOH (pKa of acetic acid = 4.75).
b) Calculate the pH after the addition of 3.00 mL of NaOH.
c) Calculate the pH after the additon of 12.5 mL of NaOH. Notice that this is the half neutralizatiom point: some of the acetic acid molecules are converted to acetate ions producing a buffer whose pH depends on the base/acid ratio (CH3COO-/CH3COOH).
d) Calculate the pH after the addtion of 25 mL of NaOH (equivalence point).
e) Calculate the pH after the addition of 35 mL of NaOH.
f) suggest an indicator other then phenolphthalein that would be suitable for this titration and explain why.
Thank you very much.
In: Chemistry
A company plans to announce that it will issue $1.6 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 6%. The company is currently all equity and worth $6.1 million with 280,000 share of common stock outstanding. After the sale of the bonds, the company will maintain the new capital structure indefinitely. The annual pretax earnings of $1.45 million are expected to remain constant in perpetuity. The tax rate is 21% a. What is the expected return on the company equity before the announcement of debt issue? b. What is the company stock price per share immediately after the repurchase announcement? c. How many shares will the company repurchase because of the debt issue? How many shares of common stock will remain after repurchasing? d. What is the required return on the company equity after restructuring?
In: Finance
Which of the following situations will disqualify a taxpayer from taking a deduction for moving expenses?
Group of answer choices
Pam moves from Phoenix to Los Angeles to take a new job. She works at the Los Angeles job for 45 weeks before starting a new job in Las Vegas.
Paul moves from Boston to Miami to start a new business selling t-shirts. The business is not successful and Paul returns to Boston after 52 weeks.
Phyllis opens a coffee bar after moving from Seattle to San Francisco. She still owns the coffee bar and lives in San Francisco 90 weeks after her move.
Marva moves from Dallas to Washington D.C. in her job as an IRS agent. She is still working at the IRS Washington office after one year.
In: Accounting
Currently, Atlas Tours has $6.12 million in assets. This is a peak six-month period. During the other six months, temporary current assets drop to $490,000.
| Temporary current assets | $1,290,000 | |
| Permanent current assets | 1,980,000 | |
| Capital assets | 2,850,000 | |
| Total assets | $6,120,000 | |
Short-term rates are 4 percent. Long-term rates are 5 percent.
Annual earnings before interest and taxes are $1,170,000. The tax
rate is 38 percent.
a. If the assets are perfectly hedged throughout
the year, what will earnings after taxes be? (Enter answers
in whole dollar, not in million.)
Earnings after taxes $
b. If short-term interest rates increase to 5 percent when assets are at their lowest level, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6–8
Earnings after taxes $
In: Finance
Currently, Atlas Tours has $6.04 million in assets. This is a peak six-month period. During the other six months, temporary current assets drop to $480,000.
| Temporary current assets | $1,280,000 | |
| Permanent current assets | 1,960,000 | |
| Capital assets | 2,800,000 | |
| Total assets | $6,040,000 | |
Short-term rates are 5 percent. Long-term rates are 7 percent.
Annual earnings before interest and taxes are $1,160,000. The tax
rate is 38 percent.
a. If the assets are perfectly hedged throughout
the year, what will earnings after taxes be? (Enter answers
in whole dollar, not in million.)
Earnings after taxes $
b. If short-term interest rates increase to 7 percent when assets are at their lowest level, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6–8
Earnings after taxes $
In: Finance
Question: Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.
You’ve been able to retrieve the following information so far:
| Number of common shares authorized | 800,000 |
| Number of common shares issued | 650,000 |
| Par value of common shares | $20 |
| Par value of cumulative preferred shares | $30 |
| Paid-in capital in excess of par-common stock | $7,000,000 |
| Paid-in capital in excess of par-preferred stock | $0 |
| Total retained earnings before the stock dividend is declared | $33,500,000 |
| No treasury shares have been reissued. |
|
Total Cash |
Preferred Dividends |
Common Dividends |
|||
|
Year |
Dividends |
Total |
Per Share |
Total |
Per Share |
| Year 1 | 30,000 | 30,000 | 0.20 | 0 | 0.00 |
| Year 2 | 54,000 | 54,000 | 0.36 | 0 | 0.00 |
| Year 3 | 87,000 | 51,000 | 0.34 | 36,000 | 0.09 |
| Year 4 | 105,000 | 45,000 | 0.30 | 60,000 | 0.15 |
| Year 5 | 117,000 | 45,000 | 0.30 | 72,000 | 0.18 |
| Year 6 | 165,000 | 45,000 | 0.30 | 120,000 | 0.30 |
The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock.
Fill in the following answers.
| How many shares of common stock are outstanding? | 400,000 |
| How many shares of preferred stock are outstanding? | 150,000 |
| What is the preferred dividend as a percent of par? | 1% |
. After completing the Cash Dividends panel, answer the following question.
Does Pranks, Inc. have any treasury stock? How can you tell?
No, because the preferred stock cash dividend is always greater than zero.
No, because the common stock cash dividend is not always zero.
Yes, because the number of shares authorized is greater than the number of shares issued.
Correct: Yes, because the number of shares issued is greater than the number of shares outstanding.
2. In which years has Pranks, Inc. paid cumulative preferred dividends in arrears? Check all that apply.
Year 1
Correct: Year 2
Correct: Year 3
Year 4
Year 5
Year 6
FINAL QUESTION:
The company declared a 4% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $26.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31.
Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.
| Total paid-in capital before the stock dividend | |
| Total retained earnings before the stock dividend | 33,500,000 |
| Total stockholders’ equity before the stock dividend | |
| Total paid-in capital after the stock dividend | 33,084,000 |
| Total retained earnings after the stock dividend | |
| Total stockholders’ equity after the stock dividend |
I need help solving the final question in bold. Other questions are already answered. Thank you.
In: Accounting
Since the 1970s, the U.S. Government has run persistent budget deficits, even during periods of strong economic growth and despite bipartisan agreement that deficit reduction is a priority. Briefly discuss some probable causes of persistent federal budget deficits using the principles of public choice theory described by Calcagno (2010).
In: Economics
The personal income tax, corporate income tax, and contributions to social insurance (Medicare and Social Security) together makes up approximately ______ of all federal government tax revenues annually (based on annual data from the period 2010-2015.)
A. 95%
B. 65%
C. 45%
D. 15%
E. 4.5%
In: Economics