Jane is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less) towards her college fund into an account that will grow at a constant rate of 4.5% a year. Both parents work for the same company that offered to match parental contributions dollar for dollar for the first 5 parental deposits and 30 cents for every parental dollar for subsequent parental deposits, until Jane reaches 19. Once she reaches 19, both the company and parents stop their contributions. College costs are expected to be $40,000 a year and Jane spends 4 years in college once she reaches 19. Assume that the beginning balance on the account is $25,000 What is the smallest amount parents should contribute each year to make Jane's college affordable?

1. What is the future value of a 5-year ordinary annuity of $1000 if the appropriate interest rate is 5%? What is the present value of the annuity?
2. What is the future value of $1000 after 4 years under 10% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding
3. What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 5%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?

For the next fiscal​ year, you forecast net income of and ending assets of $ 49,700 and ending assets of $ 506,500. Your​ firm's payout ratio is 10.1%.

Your beginning​ stockholders' equity is $ 295,700 and your beginning total liabilities are $ 119,500.

Your​ non-debt liabilities such as accounts payable are forecasted to increase by $ 9,900.

Assume your beginning debt is $ 109,300.

What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your​ debt-equity ratio​ constant?

The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditure).

The amount of equity to issue and the amount of debt to issue ___________

Please explain in details your step by step neatly. I can't seem to figure out the new debt and the formulas

Thank you!!

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:

Assume that direct labor is a variable cost.

Required:

a. Compute the unit product cost under both the absorption costing and variable costing approaches.

b. Prepare an income statement for the year using absorption costing.

c. Prepare an income statement for the year using variable costing.

d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

Suppose a firm expects that a $20 million expenditure on R&D in the current year will result in a new product that can be sold next year. Selling that product next year would increase the firm’s revenue next year by $30 million and its costs next year by $29 million.

Instructions: Enter your answer as a whole number.

a. What is the expected rate of return on this R&D expenditure?

b. Suppose the firm can get a bank loan at 6 percent interest to finance its $20 million R&D project. Will the firm undertake the project?

      (Click to select)  Yes  No

c. Now suppose the interest-rate cost of borrowing falls to 4 percent. Will the firm undertake the project?

      (Click to select)  Yes  No

d. Now suppose that the firm has savings of $20 million—enough money to fund the R&D expenditure without borrowing. If the firm has the chance to invest this money either in the R&D project or in government bonds that pay 3.5 percent per year, which should it do?

      (Click to select)  Government bonds  R&D

e. What if the government bonds were paying 6.5 percent per year?

      (Click to select)  R&D  Government bonds

10. You are offered an annuity that will pay you $200,000 once every year, at the end of each year, for 25 years (i.e. the first payment will arrive one year from now, the last payment will arrive 25 years from now). Suppose your annual discount rate is i= 5.25%, how much are you willing to pay for this annuity? Hint: this is the same as the present value of an annuity.

Albert Co. is considering a four-year project that will require an initial investment of $15,000. The base-case cash flows for this project are projected to be $15,000 per year. The best-case cash flows are projected to be $22,000 per year, and the worst-case cash flows are projected to be –$1,500 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.

1. What would be the expected net present value (NPV) of this project if the project’s cost of capital is 14%?

A. $19,607

B. $17,429

C. $20,697

D. $21,786

Albert now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $4,500 (at the end of year 2). The $4,500 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s –$1,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.

2. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account.

$21,074

$24,586

$23,415

$25,757

3. What is the value of the option to abandon the project?     

The records of Phoenix Corporation revealed the following data for the current year.

1. Refer to Phoenix Corporation.  Assume, for this question only, actual overhead is $98,700 and applied overhead is $93,250. Manufacturing overhead is:
   1. overapplied by $12,900.
   2. underapplied by $18,350.
   3. overapplied by $5,450
   4. underapplied by $5,450

2. Refer to Phoenix Corporation. Assume that Phoenix has underapplied overhead of $10,000 and that this amount is immaterial. What is the balance in Cost of Goods Sold after the underapplied overhead is closed?
   1. 133,650
   2. 123,650
   3. 143,650
   4. 137803
3. Refer to Phoenix Corporation. Assume that Phoenix has overapplied overhead of $25,000 and that this amount is material. What is the balance in Cost of Goods Sold after the overapplied overhead is closed?
   1. 123267
   2. 144033
   3. 158650
   4. 108650

Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1,789,800; and net loss $229,800. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,129,600 $635,000 $494,600 Selling expenses 513,200 90,000 423,200 Administrative expenses 147,000 55,000 92,000 $1,789,800 $780,000 $1,009,800 Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $201,000 to total salaries of $39,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.) Break-even point $Enter the break-even point in dollars rounded to 0 decimal places (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 1. Increase selling price $Enter a dollar amount 2. Change compensation $Enter a dollar amount 3. Purchase machinery $Enter a dollar amount Which course of action do you recommend? Select an option

The TropicalFlowers Company is evaluating an asset that may increase sales by $120,000 every year for 4 years. There is no expected change in net operating working capital. The company's cost of capital is 6%. The proposed asset costs $400,000, will require $20,000 to modify for operations, and falls in the 3-year class MACRS for depreciation rates: .33, .45, .15, and .07 for years 1 through 4, respectively. At the end of the 4 years, it is expected that the asset may sell for $30,000. The company's tax rate is 21%. SHOW ALL WORK FOR FULL CREDIT. a) (2 pts) What is the initial outlay for this project? b) (8 pts) What are the operating cash flows in Years 1 through 4? c) (2 pts) As part of the terminal cash flow in Year 4, what is the after-tax salvage value of the asset? d) (4 pts) What is the net present value of this proposed asset investment? Should it be accepted or rejected? SHOW ALL WORK ON THE TI BAII Plus Calculator.

SHOW ALL WORK on the TI BAII Plus Calculator!!!!!