During 2020, Pretenders Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pretenders for a lump sum of $59,850 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type No. of Chairs Estimated Selling Price Each Lounge chairs 400 $90 Armchairs 300 80 Straight chairs 700 50 During 2020, Pretenders sells 200 lounge chairs, 100 armchairs, and 120 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

1. The firm's tax rate is 40%. 2. The current price of Legacy’s 10% coupon, noncallable bonds with 10 years remaining to maturity is $1,100.00. Legacy does not use short-term interest-bearing debt on a permanent basis. 3. The current price of the firm’s 8%, $100 par value, perpetual preferred stock is $114.00. 4. Legacy’s common stock is currently selling at $45 per share. Its last dividend (D0) was $3.00, and dividends are expected to grow at a constant rate of 6.0% in the foreseeable future. Legacy’s beta is 1.1; the yield on T-bonds is 6.0%; and the market risk premium is estimated to be 5.5%. For the over-own-bond-yield-plus-judgmental-risk-premium approach, the firm uses a 4.0% judgmental risk premium. 5. Legacy’s capital structure is 40% long-term debt, 10% preferred stock, and 50% common equity.

What is the market interest rate on Legacy’s debt, and what is the component cost of this debt for WACC purposes?

On December 31, 2017, Berclair Inc. had 460 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 128 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $800 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.

Compute diluted earnings per share for the year ended December 31, 2018.

4. The only thing that changes in Dullsville is the price of a stay at the Dullsville Inn. You've collected the following data on the rates charged (for a suite with 2 queen-sized beds and 'free' continental breakfast) and the number of rooms occupied. The Inn has 100 suites, and at no time were potential visitors turned away due to no vacancy. Use this data to estimate a 'constant elasticity' demand function. Estimate the price elasticity of demand.                                                                                                                     

                Observation          Rate per night       Quantity (rooms rented)                   

                1              $70         40                          

                2              $65         50                          

                3              $80         30                          

                4              $52         62                          

                5              $92         31                          

                6              $64         41                          

                7              $43         78                          

                8              $74         35                          

                9              $83         33                          

                10           $54         52                          

                11           $87         30                          

                12           $84         28                          

                13           $68         40                          

                14           $43         69                          

                15           $48         53                          

                16           $78         34                          

                17           $72         48                          

                18           $58         53                          

                19           $56         59      

Norister Inc. is considering introducing a new product line. This will require the purchase of new fixed assets of $2.4 million. The company estimates that demand for the new product will be approximately 15,000 units per year, with a price per unit of $100. The variable cost of producing each unit of the product is $35, and fixed costs per year will be $100,000. Demand for the product is expected to remain constant for six years, after which both demand and production will cease, and the associated fixed assets will have no salvage value. Depreciation on the fixed assets will be straight-line to zero. The company’s marginal tax rate is 35%, and the required return on the project is 13%. Due to forecasting risk, the company estimates that price per unit, variable cost, fixed costs, and quantity sold could vary by ±10%, ±15%, ±5%, and ±10%, respectively. What is the project’s net present value in the best-case scenario?

Select one: a. $1,543,413 b. $1,353,424 c. $1,043,502 d. $368,020 e. $103,677

Answers provided. Please explain the calculations

This is the entire question that was given. It is not missing information.

Weisman Company, a 100% owned subsidiary of Martindale Corporation, sells inventory to Martindale at a 20% profit on selling price. The following data are available pertaining to inter-company purchases by Martindale:

Weisman’s profit numbers were $125,000, $142,000 and $265,000 for 2020, 2021, and 2022, respectively. Martindale received dividends from Weisman of $25,000 for 2020 and 2021, and $30,000 for 2022.

29.      What would be the net debit or credit to cost of goods sold on the 2021 consolidation worksheet? Answer = $19,000 credit

30.       Assume Weisman uses the equity method to account for its investment in Martindale. What would be the debit to retained earnings regarding the 2020 consolidation entry related to the unrealized inventory profit? Answer = $-0-

For each of the following developments, explain whether the shareholders and/or directors would be personally liable to the landlord, NAB Bank, Janice or Acme Computers Pty Ltd.

1) CCS Pty Ltd enters into a lease for new premises where the business is to be headquartered. (Maximum answer 200 words)

2) CCS Pty Ltd borrows $100 000 from NAB Bank on an unsecured basis. Mira personally guarantees the repayment of the loan. (Maximum answer 200 words)

3) CCS Pty Ltd purchases a block of land from Janice for $500 000 to build a new warehouse. CCS Pty Ltd grants Janice a mortgage over the land equal to the $500 000 purchase price. (Maximum answer 200 words)

4) CCS Pty Ltd purchases several computers from Acme Computers Pty Ltd. One third of the purchase price is paid on delivery and the balance is payable in equal monthly instalments. (Maximum answer 200 words)

Suppose that in this particular economy, there are four assets. Assets 1, 2, and 3 are risky and the fourth asset is risk-free.

The correlations of returns are described in the following table:

And the standard deviation of the return of each stock is:

Finally, the number of shares and price of each stock is:

1. Construct the variance-covariance matrix for the returns of the three risky assets.

2. Compute the weights of the market portfolio. That is, show that the weight of stock 1 in the market portfolio is 1/6, the weight of stock 2 is 3/6 and the weight of stock 3 is 2/6.

3. If CAPM assumptions hold, compute the investor’s optimal risky portfolio.

Qinetiq plc. makes full body scanners for airport security systems. The Transportation Security Administration​ (TSA) is considering ordering 100 such machines at a total cost of​ $20 million. To ramp up production for the order Qinetiq is considering building a new factory. To evaluate the new factory​ project, Qinetiq needs to estimate its cost of capital. Review the following information and answer the questions that follow to help Qinetiq with its analysis.

​Round two decimal

a.  What is the​ after-tax cost of debt for Qinetiq​ bonds?

b. According to the​ CAPM, what is the required return of Qinetiq​ shareholders?

c.  What is the weighted average cost of capital​ (WACC) for​ Qinetiq?

How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in temperatures from 20°F to 45°F. A random sample of prices ($) for sleeping bags in this temperature range is given below. Assume that the population of x values has an approximately normal distribution.

(a) Use a calculator with mean and sample standard deviation keys to find the sample mean price x and sample standard deviation s. (Round your answers to two decimal places.)

(b) Using the given data as representative of the population of prices of all summer sleeping bags, find a 90% confidence interval for the mean price μ of all summer sleeping bags. (Round your answers to two decimal places.)