Castle, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $26,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 15 percent higher. If there is a recession, then EBIT will be 20 percent lower. The firm is considering a debt issue of $120,000 with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 11,000 shares outstanding. The firm has a tax rate 35 percent. Assume the stock price remains constant. a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Recession $ 9.45 9.45 Incorrect Normal $ 11.82 11.82 Incorrect Expansion $ 13.59 13.59 Incorrect a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.) Percentage changes in EPS Recession -20 -20 Correct % Expansion 15 15 Correct % b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Recession $ 11.20 11.20 Incorrect Normal $ 16.40 16.40 Incorrect Expansion $ 20.30 20.30 Incorrect b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage changes in EPS Recession -31.71 -31.71 Correct % Expansion 23.78 23.78 Correct

Question 19 (1 point) Tara deposits money into an account with a nominal interest rate of 6 percent. She expects inflation to be 2 percent. Her tax rate is 20 percent. Tara’s after-tax real rate of interest Question 19 options: will be 2.8 percent if inflation turns out to be 2 percent; it will be higher if inflation turns out to be higher than 2 percent. will be 2.8 percent if inflation turns out to be 2 percent; it will be lower if inflation turns out to be higher than 2 percent. will be 3.2 percent if inflation turns out to be 2 percent; it will be higher if inflation turns out to be higher than 2 percent. will be 3.2 percent if inflation turns out to be 2 percent; it will be lower if inflation turns out to be higher than 2 percent. Question 20 (1 point) When inflation falls, people Question 20 options: make less frequent trips to the bank and firms make less frequent price changes. make less frequent trips to the bank while firms make more frequent price changes. make more frequent trips to the bank while firms make less frequent price changes. make more frequent trips to the bank and firms make more frequent price changes. Question 21 (1 point) Shoeleather costs arise when higher inflation rates induce people to Question 21 options: spend more time looking for bargains. spend less time looking for bargains. hold more money. hold less money. Question 22 (1 point) Kaitlyn purchased one share of Northwest Energy stock for $200; one year later she sold that share for $400. The inflation rate over the year was 50 percent. The tax rate on nominal capital gains is 50 percent. What was the tax on Kaitlyn’s capital gain? Question 22 options: $50 $75 $100 $200

Please show your work.

Liquidity Performance Analysis

1. Do a Cahs Flow Liquidity Analysis.

Analyze Trends in cash flow from operations from the indirect cash flow statement, Changes in the cash balance, Changes in the days cash conversion cycle, Changes in inventory days, Accounts receivables days, & Accounts payable days - to - analyze the reasons for any changes in the cash conversion cycle.

2. Calculate the growth rate for revenues over the 2 years and the sustainable growth rate, and compare them.

3. Discuss what these trends reveal about the firm's liquidity from a cash flow perspective.

Case 1 – Cost-Volume-Profit Analysis (Assignment 1 – 20% of final grade) Janet Jennings is the general manager for Mercashoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the existing fixed costs. In addition, Janet is proposing a 5% price decrease ($40 to $38) that will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Janet’s ideas but concerned about the effects theses changes will have on the break-even point and the margin of safety. Information provided: A. Rental expenses for the store: $5,000 per month. B. Janet has a salary assigned of $60,000 per year. C. The store has a sales manager who earns $45,000 per year. D. There are three salesclerks who have a salary assigned of $25,000 each per year. E. Social security expenses for each the employees represent 30% of their salary. F. Utilities expense: $600 per month. Instructions: 1. Compute the current break-even point in units and compare it to the break-even point in units if Janet’s ideas are implemented. 2. Compute the contribution margin ratio under current operations and after Janet’s changes are introduced. (Round to the nearest full percent). 3. Compute the margin of safety under the two proposals. 4. What is the operating income under each scenario? 5. Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Janet’s changes are introduced. 6. Prepare a Cost-Volume-Profit graph under the two scenarios. 7. Prepare a report explaining and justifying whether Janet’s changes should be adopted or not and provide suggestions supported by the information provided above. Show your work in Word of Excel

Risk and Rates of Return: Security Market Line Risk and Rates of Return: Security Market Line The security market line (SML) is an equation that shows the relationship between risk as measured by beta and the required rates of return on individual securities. The SML equation is given below: ​ If a stock's expected return plots on or above the SML, then the stock's return is a)insufficient/sufficient? to compensate the investor for risk. If a stock's expected return plots below the SML, the stock's return is b)insufficient/sufficient? to compensate the investor for risk. The SML line can change due to expected inflation and risk aversion. If inflation changes, then the SML plotted on a graph will shift up or down parallel to the old SML. If risk aversion changes, then the SML plotted on a graph will rotate up or down becoming more or less steep if investors become more or less risk averse. A firm can influence market risk (hence its beta coefficient) through changes in the composition of its assets and through changes in the amount of debt it uses.

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF = 5%; rM = 7%; RPM = 2%, and beta = 1.2

What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations. %

If inflation increases by 2% but there is no change in investors' risk aversion, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. % Assume now that there is no change in inflation, but risk aversion increases by 1%.

What is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. %

If inflation increases by 2% and risk aversion increases by 1%, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. %

TP is a 48 year old male client admitted to the hospital after having a seizure while attending church. He has a history of seizures and has been taking phenytoin (Dilantin) 100 mg PO TID.

1. What questions will you want to ask the patient/his family?

On further evaluation, TP admits that he sometimes forgets to take his medication because he feels “so great”. His phenytoin level is 5 mcg/mL.

2. His wife asks you what that level means. How would you describe his level in regards to the typical therapeutic range?

3. What education do you need to provide him at this point?

TP is discharged after 3 days with a phenytoin level of 11 mcg/mL. He will be sent home with phenytoin extended release 300mg PO daily. He tells you that part of the reason he is reluctant to take his medication is that when it was originally prescribed, the physician cautioned him that it could easily become toxic in his blood and that he was frightened.

4. How would you address his concerns? What can be done to minimize the risk of excessive blood levels?

5. What other education would you provide him regarding his phenytoin therapy? What does he need to watch for? What can he do to minimize the severity of side effects?

6. What are some general nursing responsibilities regarding care of a patient with seizures?

7. What if TP was a 24 year old female taking oral contraceptives and prescribed phenytoin? What teaching would she need?

For each of the following scenarios, identify the nonverbal message being sent and indicate if the sender and/or receiver should handle the matter differently:

1. While you are talking to a client, she starts drumming her fingers on her desk.
2. You are a new employee attending your first group meeting. When a man arrives after the meeting has started, others stand up to offer him a chair.
3. When you make a suggestion at a group meeting, a colleague rolls her eyes.
4. You need to speak with the internal controller. When you enter his office, you see that he sits with his back to the door, facing the window. He motions you to sit down and continues working for a minute before turning to face you.
5. At a meeting you’ve requested with your boss, she closes the door after you’ve entered and forwards all calls to her assistant.
6. A prospective employee sits facing you. She hunches her shoulders, fiddles with her ring, and bites her lip throughout the interview.
7. You hear there is a new engineer your age down the hall and go to his office to welcome him. While you sit talking to him across his desk, he continually rocks back in his chair and presses his fingers together in a “church steeple” position. He smiles with his mouth but not his eyes.
8. Three days after you have reprimanded an employee, she refuses to look you in the eye when you meet in the corridor. She returns your greeting in a clipped voice.
9. On your work site, a supervisor doesn’t respond when you mention the email you sent about a possible environmental hazard.

Mrs. Jansen is a Roman Catholic Christian 58-year-old schoolteacher. Six weeks ago, she suffered a stroke that left her with severe deficits. Her doctor told her family that due to her injury, she will be unable to walk on her own, feed herself, or be independent from full assistance for the remainder of her life. She remains in the hospital and has not communicated with her family in any way since the stroke. She is breathing on her own but will most likely experience unpredictable bouts of respiratory distress for the rest of her life, requiring future mechanical ventilation. She is receiving nutrients through a feeding tube, which was surgically inserted in her stomach.

Her husband wants the doctor to remove the feeding tube and permit the effects of the stroke to take their natural course. He is sure that this is what his wife would want, especially considering the grim diagnosis. He knows this not only from what she has told him in the past but also because of her free and independent character. He believes that she would not want to live like this. The doctor is not comfortable removing the feeding tube because she believes it to be necessary to sustain life.

Questions to consider in the case study:

• What can you find in the teaching of the Catholic Church to help inform the patient’s caregivers so that they can decide on a course of action?
• Do you think the husband's request is reasonable? What do you think about the doctor's response? Can the feeding tube can be removed, and the sanctity of the patient's life still be recognized?
• What course of action should be taken? If you were the husband how would you proceed?