A 36 year old actress in apparently good health was admitted to the hospital for cosmetic surgery. No abnormalities were noted on her history or physical exam. Family history was unremarkable. Her routine admission tests for surgery were as follows:

PT: 11.3 sec.

PTT: 58.0 sec. (corrected by adsorbed plasma and aged serum

BT: 3 min.

TT: 11 sec.

Plt count: 198,000/uL

1. Possible deficiency?

2. Treatment? yes or no

3. If so, what?

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $92 per unit, and variable expenses are $62 per unit. Fixed expenses are $834,300 per year. The present annual sales volume (at the $92 selling price) is 25,400 units.

Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

A bond with a 2-year maturity has a coupon rate of 1% and a face value of $1,000. The coupons are paid annually and the next coupon is due in one year. The bond’s yield to maturity is 1%. What is this bond’s Modified Duration?

An open economy has the following information on its Income and Expenditures of a given year: The Consumption, Investment and Net Export Functions for the economy are as follows: Consumption, C =500+0.4(Y-T) Investment, I = 450-25r r= r* = 3 percent (please do not convert it into a decimal) Net Export, NX = 500-250ε The economy experienced the following output level with the given Taxes collected and Government Purchases during a given period. Total Income (Real GDP), Y = $2000 Billion Taxes collected, T = $400 Billion Government Purchases, G = $300 Billion

a. Please calculate the private savings, public savings, the national savings, investment, net export and the equilibrium exchange rate.

b. Suppose the government would have increased its spending by 30%. What would have been the equilibrium exchange rate?

You are evaluating a 1-year project that is in line with the firm’s existing business. Specifically, this new project requires an investment of $1,200 in free cash flow today, but will generate $1,600 one year from today. The project will be partially financed with a 1-year maturity debt whose face value is $200 and interest rate is 10%.

Suppose that you estimated the cost of equity as 20%, based on the firm’s stock data. However, you were not able to estimate the cost of debt because your firm’s total debt consists of long-term debt, short-term debt, investment grade debt, and debt with different levels of collateral. Assume that the corporate tax rate is 30%.

a) Under the FTE approach, the NPV of the project is obtained by discounting future FCFE using the _______.

b) What is the NPV of this project?

Perl Corp is expected to have an EBIT of $2,300,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $100,000, and $140,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $12,000,000 in debt and 1,000,000 shares outstanding. After yea 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company's WACC is 8.8 percent and tax rate is 25 percent.

What is the price per share of the company's stock?

Echo Company purchased a machine some years ago. At the end of the current year, the company revalued the machine to its fair value. The machine has the following characteristics as at the end of the current year:

Required:

1. Calculate the depreciation expense for the years prior to the revaluation.
2. Calculate the depreciation expense for the years following the revaluation.
3. Record the journal entry for the revaluation adjustment using the elimination method.
4. Record the journal entry for the revaluation adjustment using the proportional method.

Rachel and Bill carry on a partnership together with gross receipts for the current income year of $ 80,000.
During the year the following payments were made:-
$ Purchase of trading stock 18,000
Wages to employees 10,000
Advances to Rachel 35,000
Lease payments on two cars 4,000

Rachel and Bill share the profits in the ration of 3:1.
Stock on hand at the beginning of the year was $ 3,000 and at the end of the year was $ 3,400. Both cars were used for business purposes, but Bill uses his 40% for private purpose as well. Bill also works part-time as a trainer and generated a gross income of 12,000. He subscribes magazines that update his knowledge on the industry and trainings to be provided to his own clients and it costs him $ 800 in annual subscription fees. He also received fully franked dividends from ABC Company of $1,125 in the current income year.

Requirements: a) Calculate the net income of the partnership and the assessable income of the partners. b) Calculate the final tax liability of Bill.  

Periodic Inventory by Three Methods

The units of an item available for sale during the year were as follows:

There are 1,215 units of the item in the physical inventory at December 31. The periodic inventory system is used. Do not round intermediate calculation and round final answer to nearest whole value.

a. Determine the inventory cost by the first-in, first-out method.
$

b. Determine the inventory cost by the last-in, first-out method.
$

c. Determine the inventory cost by the weighted average cost method.
$