Multiple Product Planning with Taxes
In the year 2008, Wiggins Processing Company had the following contribution income statement:

HINT: Round the contribution margin ratio to two decimal places for your calculations below.

(a) Determine the annual break-even point in sales dollars.
$Answer

(b) Determine the annual margin of safety in sales dollars.
$Answer

(c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $34,000?
Answer

(d) With the current cost structure, including fixed costs of $272,000, what dollar sales volume is required to provide an after-tax net income of $160,000?

Do not round until your final answer. Round your answer to the nearest dollar.
$Answer

(e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income.

Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.

A space station is approximately a ring of radius,R, and mass m, which rotates about its symmetry axis with angular velocity,~ω=ω0ˆe3. A meteor is traveling with momentum,~p, that is parallel to the original ˆe3, and strikes the space station at a point on the rim,transferring the entire momentum to the space station (an inelastic collision where the meteor sticks to the space station). Further, though the meteor has significant momentum,it is of very small mass so that the moment of inertia tensor elements are approximately the same before and after the collision

a) What is the vector angular momentum of the space station with respect to a coordinate system with origin at the center of the ring and one axis along ˆe3 just before the collision?

b) What is the vector angular momentum of the space station in the same coordinate system (and defining the ˆe2 axis as in the direction from the origin to the point of impact on the edge of the ring) just after the collision?

c) After the collision, there are no further torques acting on the space station. Assume that the angular momentum of the space station after the collision differs by only a small (vector) amount from the initial angular momentum. Write down equations of motion that describe how the components of~ωfor the space station evolve with time.

d) Use these equations to describe how the rotational velocity vector of the space station evolves with time. If you predict simple rotation about a new direction, say so and describe the new direction. If you predict precessional motion, say so and predict the precession frequency. If you think something else happens, say so and describe the motion. In all cases, Explain: Back up your prediction with reasoning and (possibly approximate) solutions of the equations from part (c).

Multiple Product Planning with Taxes
In the year 2008, Wiggins Processing Company had the following contribution income statement:

HINT: Round the contribution margin ratio to two decimal places for your calculations below.

(a) Determine the annual break-even point in sales dollars.
$Answer

(b) Determine the annual margin of safety in sales dollars.
$Answer

(c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $60,000?
Answer

(d) With the current cost structure, including fixed costs of $260,000, what dollar sales volume is required to provide an after-tax net income of $190,000?

Do not round until your final answer. Round your answer to the nearest dollar.
$Answer

(e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income.

Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.

Facts: Opportunity Landscaping Inc. (Opportunity) appreciated your assistance in preparing their 2018 Federal income tax return. As a result, they have come to you for advice on acquiring new facilities for their manufacturing operations. They plan to take access to their new facilities on January 2, 2020.

The corporation has the opportunity to purchase an appropriate facility in suburban Chicago for $90,000,000 ($87,000,000 for the factory building; $3,000,000 for the land). If they purchase the facility, they would finance the acquisition via a 15-year mortgage at 3.5% interest with a $18,000,000 down payment (due at closing on January 2, 2020). The mortgage would be payable annually in arrears (i.e., the first mortgage payment would be due January 2, 2021). Real property taxes on the facility in 2020 would be $1,000,000 (the property taxes are also due annually in arrears with 2020 taxes due on January 2, 2021). Further, Opportunity estimates that property taxes will increase annually at a rate of 3% in years subsequent to 2020.

As an alternative, a local real estate investor has offered to purchase the facility and lease it to the corporation. The investor would require Opportunity to sign a 7-year non-cancelable lease. The first lease payment of $3,700,000 would be due on January 2, 2020. Lease payments will increase by 4% each year during the term of the lease with the final lease payment due on January 2, 2026. In addition, the lease would require a refundable deposit of $1,850,000 (payment due on January 2, 2020) against significant damages to the facility; this deposit will be refunded to the corporation on January 2, 2027 (when the occupancy ends and assuming that there are no significant damages).

Opportunity must decide whether to lease or buy the facility. In order to make a proper decision, the corporation will assume that it could sell the facility (building and land) on January 2, 2027 for $100,000,000. Under this scenario, they would make their final mortgage and property tax payments on January 2, 2027 and then sell the facility.

Opportunity’s Federal corporate tax rate is 21% and it uses a 7% discount rate to compute the present value of its future cash flows. For purposes of this analysis, assume that all cash flows occur at the beginning of the respective year.

Required:

1. Based on the above facts, which option (lease or buy) minimizes Opportunity’s after-tax cost of obtaining the facility?

2. The local real estate investor has provided an option for Opportunity to consider. Under this option, a payment of $12,000,000 is due on January 2, 2020. If this payment is made, no deposit is required and the payment is deemed to cover the first three years of the lease. On January 2, 2023, lease payments resume with a $4,000,000 lease payment due (and a 4% increase in the lease payment each year for the remainder of the lease term). Is this an alternative that Opportunity should consider? Read and apply the materials in text Section 6-2d as part of your analysis.

3. Opportunity’s CFO is not certain that the current 21% Federal tax rate will be maintained over the next seven years. She feels that an increase in the Federal rate to around 30% is likely at some point in the near term. As a result, she would like to know how your analysis would be affected if the Federal income tax rate increased to 30% on January 1, 2025.

I have calculated and found that the NPV for the lease option is ($19,516,098). I have also used the PMT function on excel and found that the annual mortgage payments are $6,251,405 (15 years; $72 million; 3.5% interest rate). I need help computing the NPV for the buy option in order to decide which option is best.

In early January 2010​, you purchased ​$45,000 worth of some​ high-grade corporate bonds. The bonds carried a coupon of 8 font size decreased by 1 font size decreased by 1 font size decreased by 1 5/8 %(one and five eighths) and mature in 2024. You paid 94.312 when you bought the bonds. Over the five years from 2010 through 2014​,

the bonds were priced in the market as​ follows:

Coupon payments were made on schedule throughout the​ 5-year period.

a. Find the annual holding period returns for2010 through 2014 ​(See Chapter 5 for the HPR​ formula.)

b. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the​ market? Explain.

1: The holding period return for 2010,2011,2012,2013,2014 is_______%. ​(Round to two decimal​ places.)

2. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the​ market? Explain. (Select the best choice​ below.)

The market has outperformed the corporate bond investment. The average rate of return for the investment is_____​% versus the average market rate of____%.

The​ high-grade corporate bond investment has outperformed the market. The average rate of return for the investment is______​% versus the average market rate of______​%.

Lab Assignment

Part B - Recurrence Intervals

Data from the chart below was collected at the USGS site and includes the 20 largest discharge events for Sweetwater Creek at station 02337000 from January 1, 2008 through May 1, 2015, excluding the dramatic 2009 flood (we will learn more about that later). In order to create a flood-frequency graph, you must first calculate the recurrence interval (one is calculated below as an example). A recurrence interval refers to the average time period within which a given flood event will be equaled or exceeded once. To calculate it, first evaluate the rank of the flood, with a “1” going to the highest discharge event and a “20” going to the lowest discharge event. Calculate the recurrence interval using the following equation:

RI = (n+1) ÷ m

where, RI = Recurrence Interval (years)

n = number of years of records (in this case, 8)

I am having a hard time writing these SQL queries. Please specify the following queries in SQL on the database schema shown in the figure below.

1) Retrieve the course names of all courses with the number of credit hours as 4

2) Retrieve the names of all courses and their respective departments taught by professor Chang in 2010 and 2011

3) For each section taught by Professor King, retrieve the course number, semester, year, and the number of students who took the section

4) Retrieve the name and transcript of each freshman student (Class=1) majoring in EE. Transcript includes course name, course number, credit hours, semester, year, and grade for each course completed by the student

The Gulf Power Company currently is an all-equity firm. The value of Gulf Power's equity is $12,000,000 and there are 600,000 shares outstanding. The expected annual EBIT of Gulf Power is $2,400,000. Those earnings are also expected to remain constant into the foreseeable future. Gulf Power is in the 40-percent tax bracket. The Gulf Power Company plans to announce that it will issue $3,000,000 of perpetual bonds and uses the proceeds to repurchase common stock. The bonds will have a 5-percent coupon rate. After the sale of the bonds, Gulf Power will maintain the new capital structure indefinitely. The MM theory applies.

1.What is the firm's cost of capital before the capital restructuring?

2. After the sale of the bonds, Gulf Power will maintain the new capital structure indefinitely. The MM theory applies. What is the number of shares repurchased?

3.After the sale of the bonds, Gulf Power will maintain the new capital structure indefinitely. The MM theory applies. What is the firm's cost of capital after the capital restructuring?

4.After the sale of the bonds, Gulf Power will maintain the new capital structure indefinitely. The MM theory applies. What is Gulf Power's cost of equity after the capital restructuring?

5.After the sale of the bonds, Gulf Power will maintain the new capital structure indefinitely. The MM theory applies. What is the firm's net income (NI) after the capital restructuring?

We can make a simple model of the human vocal tract as an open-closed tube extending from the opening of the mouth to the diaphragm

Q: What is the length of this tube if its fundamental frequency equals a typical speech frequency of 240 Hz ? The speed of sound in the warm air is 350 m/s.