1. What is the component cost of debt in this scenario: a 10 year annual coupon bond at 8% that sells for $1125 with a tax rate of 40%?

1. 6.28%
2. 3.77%
3. 4.8%
4. 8%

Pearl Corp. is expected to have an EBIT of $2,500,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $110,000, and $150,000, respectively. All are expected to grow at 15 percent per year for four years. The company currently has $13,000,000 in debt and 850,000 shares outstanding. At Year 5, you believe that the company's sales will be $17,930,000 and the appropriate price-sales ratio is 2.7. The company’s WACC is 9.1 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.)

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead:

1.The total actual variable factory overhead cost incurred during the year was:
2.The standard fixed overhead application rate is:

3. The variable factory overhead efficiency variance is:

4. The variable overhead spending variance is:

5. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:

6. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:

The parents of a 4-year-old boy explain to the clinic nurse that for weeks the child has been irritable and listless and even though he has developed a poor appetite, has gained weight. What signs and symptoms should the nurse look for, and what condition should the nurse suspect? What nursing interventions and parent education are appropriate?

A nutritionist claims that the mean tuna consumption by a person is 3.4 pounds per year. A sample of 80 people shows that the mean tuna consumption by a person is 3.3 pounds per year. Assume the population standard deviation is1.14 pounds. At alphaαequals 0.07​,can you reject the​ claim?

1) identify the null hypothesis and alternative hypothesis __________

2) Identify the standardized test statistic.(round to two decimal places)

z= _____

3) find the P value

p=_____

4) decide whether to reject or fail to reject the null hypothesis. Is their sufficient evidence?

Assume that 17.00 % is the appropriate rate for the following cash flow stream.

1. What is the Present Value of the cash flows?

2. What is the Future Value of the cash flows?

Round your answer to the nearest dollar and do NOT enter a dollar sign.

Allergia Inc. has the following two mutually exclusive projects:

                      Year                  Cash Flow (A)                        Cash Flow (B)

0                      -$300,000                                -$35,000

1                      25,000                                     16,000

2                      60,000                                     12,000

3                      80,000                                     15,000

4                      120,000                                   13,000

Whichever project you choose, if any, you require a 15 percent return on your investment.

1. If you apply the payback criterion, which investment will you choose? Why?   

2. If you apply the NPV criterion, which investment will you choose? Why?         

3. If you apply the IRR criterion, which investment will you choose? Why?          

4. If you apply the profitability index criterion, which investment will you choose? Why?

5. f. Based on your answers in (a) through (e), which project will you finally choose? Why?

The initial capital cost will be $500,000 paid at the beginning of year 1 (i.e., immediately). The impact on cottage owners will involve a loss of $50,000 at the end of each year for the first four years (because of the construction activities affecting property values) but cottage owners will benefit by $55,000 per year in perpetuity from the end of year 5 onwards. The benefits from recreational fishing will not start until the end of year 5 and will be $35,000 per year in perpetuity. Development, stocking and management costs of the recreational fishery will start at the beginning of year 3 and continue forever. These costs are $10,000 per year

0. The province is considering a water resource development that will enhance recreational fishing and recreational cottage values (property values).

   1. a) Calculate the net present value using a 5% discount rate. Interpret the result. (15 points)

   2. b) Calculate the gross benefit cost ratio using a discount rate of 5%. Interpret the result. (5 points)

   3. c) Which value best approximates the internal rate of return: 4 %, 5%, 6%, 7%, 8%, or 9%? (Note – you are not being asked to calculate the internal rate of return!) (5 points)

A standardized​ exam's scores are normally distributed. In a recent​ year, the mean test score was 1507 and the standard deviation was 315. The test scores of four students selected at random are 1900​, 1260​, 2220​, and 1390. Find the​ z-scores that correspond to each value and determine whether any of the values are unusual. The​ z-score for 1900 is nothing. ​(Round to two decimal places as​ needed.) The​ z-score for 1260 is nothing. ​(Round to two decimal places as​ needed.) The​ z-score for 2220 is nothing. ​(Round to two decimal places as​ needed.) The​ z-score for 1390 is nothing. ​(Round to two decimal places as​ needed.) Which​ values, if​ any, are​ unusual? Select the correct choice below​ and, if​ necessary, fill in the answer box within your choice. A. The unusual​ value(s) is/are nothing. ​(Use a comma to separate answers as​ needed.) B. None of the values are unusual.

EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production:

You learn that equipment costs and building occupancy are fixed and are based on a normal production of 650,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 850,000 units per year.

Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed EcoSacks that it will impose a 20 percent price increase at the start of the coming budget period. No other costs are expected to change.

During the coming budget period, EcoSacks expects to sell 590,000 bags. Finished goods inventory is targeted to increase from the current balance of 170,000 units to 260,000 units to prepare for an expected sales increase the year after next as a result of legislation in several states regarding plastic bags. Production will occur evenly throughout the year. Inventory levels for cotton and canvas are expected to remain unchanged throughout the year. There is no work-in-process inventory.

Required:

a. Prepare a production budget for the coming year.

b. Estimate the materials, labor, and overhead costs for the coming year.