1. The price level depends upon?

Currently the firm has total market value of debt $20 million and total market value of equity $60 million. This capital structure is considered optimal by the management. The optimal capital budget for new investment for the coming period is determined to be $15 million. The total net income is estimated to be $20 million. The firm has 5 million common shares outstanding. The most recent dividend per share is $1 and the management intends to maintain it for the foreseeable future. The management also wants to maintain the optimal capital structure. Which of the following statements is true? Select one: a. After paying dividends the firm still has enough money remaining to meet the equity requirement for the new investments. b. The optimal debt ratio is 30%. c. The firm would need to raise external equity by $1.2 million. d. The dividend payout ratio is 20%.

1. The table below contains data about your food budget, and assumes you have $20 to spend. Fill out the entire table, assuming bread is $4 per loaf and cereal is $4 per box

a. In the space below (turn your paper sideways to draw), illustrate the law of diminishing marginal utility for bread

b. If this consumer wants to maximize their utility, they will use the _________________________ rule to arrive at the purchase of _______ loaves of bread and _______ boxes of cereal. Show your work for this analysis below

c.Now, the price of cereal drops to $2 per box. This consumer will buy _______ breads and _______ cereals. Complete the work below and draw this consumer’s demand curve for cereal:

Q12.   Using the data in the table below, plot the total fixed costs (TFC), total variable costs (TVC) and total cost (TC) schedules.
Quantity   TFC($) TVC($)    TC($)
   0 120    0    120
   1    120 60 18

   2    120 80 200
   3    120    90 210
   4    120 105    225
   5    120 140    260
   6    120 210 330

a.   Given the table in Q12, determine the schedules for average fixed costs (AFC), average variable costs (AVC), and average costs (AC).
b.   Plot the AFC, AVC, and AC schedules on a new graph.
c.   Why does the AFC curve fall continuously?
d.   What is the relationship between AFC, AC and AVC?
e.   Determine the marginal cost (MC) schedule.
f.   Plot the MC on the same graph as the AFC, AVC, and AC curves
g.   Does the MC curve intersect any of the other curves in this figure? If so which curves? Does the intersection occur at a particular point? If so, what point?

Ricalta Inc. earns a total of $500,000 before interest and taxes. Its total debt is $1,110,000 (costing 5%). It has 150,000 shares of common stock at $5 per share. The firm is considering reducing its debt by $450,000 by issuing an additional 90,000 shares of common stock. The firm is in the 35 percent tax bracket. Its earnings before interest and taxes will remain the same as the new capital structure will not impact the firm’s operations. Which of the following will be a consequence of the change in Ricalta’s capital structure?​

Which one the following statements is correct?

1. On the balance sheet, total assets equal total liabilities minus total equity.

2. GAAP accounting standards do not allow firms to value intangible assets on their balance sheet.

3. Equity is the value of the firm's assets after its creditors have been paid off.

4. An increase in cash reduces the liquidity of a firm.

How does the total Kinetic Energy before the collision compare to the total Kinetic Energy after the collision, for the case of inelastic collisions? How does it compare for elastic collisions?

SOLVENCY RATIOS

Debt ratio for Walgreens = Total Liabilities / Total assets

Debt ratio for Walgreens 2018 = $68,124 / $68,124 = 1

Debt ratio for Walgreens 2017 = $66,009 / $66,009 = 1

Debt ratio for CVS

Debt ratio for CVS 2018 = $196,456 / $196,456 = 1

Debt ratio for CVS 2017 = $95,131 / $95,131 = 1

What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible).

1. Shareholders’ wealth can be defined as ______

2.

The average tax rate is defined as the ______

3.

Which one of the following is a working capital management decision?

When preparing the manufacturing overhead budget, total overhead costs for the period does not equal total overhead cash payments for the period because:     

a.overhead costs typically only require cash payments for indirect materials.

b.overhead costs typically only require cash payments for factory rent.

c.overhead costs typically do not require cash payments.

d.overhead costs typically include depreciation costs, which does not require a cash payment.