You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,070,000 this year. Depreciation, the increase in net working capital, and capital spending were $236,000, $101,000, and $470,000, respectively. You expect that over the next five years, EBIT will grow at 17 percent per year, depreciation and capital spending will grow at 22 percent per year, and NWC will grow at 12 percent per year. The company has $17,300,000 in debt and 355,000 shares outstanding. You believe that sales in five years will be $18,750,000 and the price-sales ratio will be 2.2. The company’s WACC is 8.9 percent and the tax rate is 22 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Please show your excel formulas. Thanks!

Choose a real residential community of more than one person.
Describe its macroeconomy.
Treat the community as though it were a country.
If people don't want to disclose information, select another community.

Answer these questions:

What kind of governance does your community have?
E.g. homeowner's association, SCU and dorm administration, city government.
How are financial decisions made?

Calculate the GDP and its parts:
List on a table, and enter the totals of income from all sources, including wages, loans, scholarships, and gifts.
You don't need to list the individual persons' incomes.
List and describe the categories (consumption, investment) and totals of spending, including tuition and housing, and savings.
List the purchase and sale of foreign assets such as a bank account.
Include total income and GDP income and spending.
List these in tables, and then provide relevant explanations.

Have there been any investments?

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,170,000 this year. Depreciation, the increase in net working capital, and capital spending are expected to be $241,000, $106,000, and $495,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company currently has $18.3 million in debt and 380,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.9 percent and the tax rate is 22 percent.

What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,990,000 this year. Depreciation, the increase in net working capital, and capital spending were $232,000, $97,000, and $450,000, respectively. You expect that over the next five years, EBIT will grow at 16 percent per year, depreciation and capital spending will grow at 21 per year, and NWC will grow at 11 per year. The company currently has $16,500,000 in debt and 335,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 9.1 percent and the tax rate is 40 percent.

What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Share price

Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows.

OVERHEAD APPLICATION, FIXED AND VARIABLE OVERHEAD VARIANCES

Tules Company is planning to produce 2,400,000 power drills for the coming year. The company uses direct labour hours to assign overhead to products. Each drill requires 0.5 standard hour of labour for completion. The total budgeted overhead was $2,700,000. The total fixed overhead budgeted for the coming year is $1,320,000. Predetermined overhead rates are calculated using expected production, measured in direct labour hours. Actual results for the year are:

Actual production (units)    2,360,000

Actual direct labour hours 1,190,000

Actual variable overhead    $1,410,000

Actual fixed overhead         $1,260,000

Required:

1.    Compute the applied fixed overhead.

2.    Compute the fixed overhead spending and efficiency variances.

3.    Compute the applied variable overhead.

4.    Compute the variable overhead spending and volume variances.

Consider two economies. In economy A:  autonomous consumption equals 700, the marginal propensity to consume equals 0.80, taxes are fixed at 50, investment is 100, government spending is 100, and net exports are 40.

In economy B: autonomous consumption equals 1000, the marginal propensity to consume equals 0.8, taxes are proportional to income such that consumers pay 25% of their income as taxes, investment is 250, government purchases are 150, and net exports are 400.

Question 1: What is the planned aggregate expenditure (PAE) in each economy?

Question 2:What is the short-run equilibrium output in each economy?

Question 3: In which economy is the spending multiplier higher?

Question 4:Suppose autonomous consumption fall by 500 in each economy. Which economy will see a higher drop in GDP? Compute the equilibrium output in each economy.

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,890,000 this year. Depreciation, the increase in net working capital, and capital spending are expected to be $227,000, $92,000, and $425,000, respectively. You expect that over the next five years, EBIT will grow at 18 percent per year, depreciation and capital spending will grow at 23 percent per year, and NWC will grow at 13 percent per year. The company currently has $15.5 million in debt and 415,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company’s WACC is 8.9 percent and the tax rate is 23 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Taco-bell and Rio wrap are competing in the MI market. Each firm is deciding whether to follow a high spending advertising strategy. More aggressive advertising would lead high spending on media and billboard advertising. The profits associated with each strategy are as follows:

a) Does either firm have a dominant strategy? If yes, what is the dominant strategy for each firm?

b) Does either firm have a dominated strategy? If yes, state the strategy for each firm.

c) Find the equilibrium. Is this equilibrium Nash or Dominant strategy or both?

d) Is this game an example of the prisoners’ dilemma? Explain

e) If this game changes to infinitely repetead game, will a cooperation occur? What would be the cooperated strategy? What are their expected payoffs? (assume i=5%)

Taco-bell and Rio wrap are competing in the MI market. Each firm is deciding whether to follow a high spending advertising strategy. More aggressive advertising would lead high spending on media and billboard advertising. The profits associated with each strategy are as follows:

a) Does either firm have a dominant strategy? If yes, what is the dominant strategy for each firm?

b) Does either firm have a dominated strategy? If yes, state the strategy for each firm.

c) Find the equilibrium. Is this equilibrium Nash or Dominant strategy or both?

d) Is this game an example of the prisoners’ dilemma? Explain

e) If this game changes to infinitely repetead game, will a cooperation occur? What would be the cooperated strategy? What are their expected payoffs? (assume i=5%)