5 Determine the ROE for firms A and B tabulated below, using a tax rate of 40% and an Annual market interest rate of 10% Based on the above information, calculate

a) ROE for Firms A and B;

(b) ROE for each firm if the EBIT for each is $500; and

(c) Compare the ROE for the two firms for two levels of operating activity.

What is your conclusion regarding the effect of debt on ROE?

6(a) Explain the advantages of using market capitalization as a measure of equity, and then, its drawbacks.

(b)Explain how looking at the ratio of total assets to total liabilities can mislead the analyst.

7.Describe how the careful study of financial statements can help raise warning flags regarding risk in merger and acquisitions have driven stock for stock transactions, and explain some examples of the need to watch for earnings discontinuities.

8 (a)Explain some of the ways that companies downplay expenses?

(b) What do most analysts do to benefit from the insights provided by the careful scrutiny of financial statements?

Using the T accounts below, record the following transactions. Label each entry with the appropriate letter.

a. The stockholders contributed cash of $40,000 and a truck worth $48,000 into the business in exchange for 8,800 shares of $10 par value stock.

b. Paid two months' rent in advance, $2,400.

c. Agreed to do a hauling job for a price of $6,400.

d. Performed the hauling job. Will get paid later.

e. Received payment of $2,000 on the hauling job.

f. Purchased gasoline on credit, $40.

There are t-accounts for the following:

-Cash (three entries)

-Accounts Payable (one entry)

-Accounts Receivable (two entries)

-Common Stock (one entry)

-Prepaid rent (one entry)

-Hauling revenue (one entry)

-Truck (one entry)

-Gasoline expense (one entry)

Match the answers below with the statements
a. Statement only refers to replication
b. Statement only refers to protein synthesis
c. Statement refers to both replication and protein synthesis
d. Statement refers to neither replication nor protein synthesis

7) Takes place only in the nucleus
8) Results in the formation of ATP
9) Requires RNA
10) Results in the destruction of a complete DNA strand
11) Results in the formation of a polypeptide
12) Only takes place in interphase before mitosis
13) Enzymes required for completion
14) Forms 2 identical polymers containing the base thymine
15) Involves transcription and translation

Match each word with the definition below: Agnosia, athetosis, myoclonus, apraxia, akathisia, dysphasia, chorea, tremor

1. __________impaired language production or comprehension that interferes with communication

2. __________Involuntary rapid contractions of muscle groups in random pattern

3.__________Impaired recognition of tactile, visual, or auditory patterns

4. _________Involuntary, rhythmic, oscillating movement of a body part

5. _________Shocklike, nonpatterned muscle contractions causing limb movement; may occur during sleep.

6. _________ Inability to perform purposeful or skilled motor actions

7. _________Involuntary, slow, twisting, writhing movements

8. __________ Motor restlessness, compulsion to move lower extremities

Write a JAVA code using regex methods and concepts The test string S should match the following requirements:

• S must be of length 6
• First character should not be a digit (1, 2, 3, 4, 5, 6, 7, 8, 9 or 0).
• Second character should not be a lowercase vowel (a, e, i, o or u).
• Third character should not be b, c, D or E.
• Fourth character should not be a whitespace character (\r, \n, \t, \f or the space character).
• Fifth character should not be an uppercase vowel (A, E, I, O or U).
• Sixth character should not be a . or , symbol.

Define a regular expression that will correctly (and exactly) match a valid Gregorian calendar date of the form MM/DD/YYYY (with leading zeroes for single-digit months and days) (and ONLY dates in this format). • Months 1, 3, 5, 7, 8, 10, and 12 have 1–31 days • Months 4, 6, 9, and 11 have 1–30 days • Month 2 (February) has 1–28 days (ignore leap years) • Assume that the year falls into the range 1900–2099 HINT: You may find it helpful to define several patterns and combine them using the alternation operator.

Delicious Snacks, Inc. is considering adding a new line of candies to its current product line. The company already paid $300,000 for a marketing research study that provided evidence about the demand for this product at this time. The new line will require an additional investment of $70,000 in raw materials to produce the candies. The project’s life is 7 years and the firm estimates sales of 1,500,000 packages at a price of $1 per unit the first year; but this volume is expected to grow at 17% for the next two years, 12% for the following two years, and finally at 7% for the last two years of the project. The price per unit is expected to grow at the historical average rate of inflation of 3%. The variable costs will be 70% of sales and the fixed costs will be $500,000. The equipment required to produce the candies will cost $900,000, and will require an additional $30,000 to have it delivered and installed. This equipment has an expected useful life of 7 years and will be depreciated using the MACRS 5-year class life. After 7 years, the equipment can be sold at a price of $200,000. The cost of capital is 9% and the firm’s marginal tax rate is 35%.

Please show any detailsl in the EXCEL!!!!! Thank you

a) Calculate the initial investment, annual after-tax cash flows for each year, and the terminal cash flow.

b) Determine the NPV, IRR, and MIRR of the new line of candies. Should the firm accept or reject the project?

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 6%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's EBIT is $14.039 million, and it faces a 40% federal-plus-state tax rate. The market risk premium is 6%, and the risk-free rate is 7%. BEA is considering increasing its debt level to a capital structure with 40% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 12%. BEA has a beta of 1.0.

What is the total value of the firm with 40% debt? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to three decimal places.
$ ___ million

1. What is BEA's unlevered beta? Use market value D/S (which is the same as w_d/w_s) when unlevering. Do not round intermediate calculations. Round your answer to two decimal places.
   _____
2. What are BEA's new beta and cost of equity if it has 40% debt? Do not round intermediate calculations. Round your answers to two decimal places.
   Beta: ____
   Cost of equity: ____ %
3. What are BEA’s WACC and total value of the firm with 40% debt? Do not round intermediate calculations. Round your answer to two decimal places.
   _____%