Demolition Construction Services has 12,500 shares of stock outstanding and no debt. The new CFO is considering issuing $75,000 of debt and using the proceeds to retire 2,500 shares of stock. The coupon rate on the debt is 6.8 percent. What is the break-even level of earnings before interest and taxes between these two capital structure options?

A) $16,860

B) $18,520

C) $18,240

D) $21,000

E) $15,300

Do an internet search on public funding of stadiums/sports facilities (i.e., the use of taxpayer monies to pay for the construction of stadiums/sports facilities for professional teams) Pay particular attention to research presented by mainstream business news organizations such as: MSNBC and CNBC, as well as any economic think tanks such as the American Enterprise Institute, Brookings Institution, Cato Institute, or the Center for Economic and Policy Research. Links to several economic think tanks can be found at Economics Think Tanks.

Conduct an objective marginal analysis as covered by the text; objectively weigh marginal benefits and marginal costs of the use of taxpayer monies to pay for the construction of stadiums/sports facilities for professional teams. Determine whether or not the if the marginal benefits outweigh the marginal costs.

Please format your response as per below:

1. Identified marginal benefits.

2. Identified marginal costs – what opportunity costs are generated by the decision?

3. Do the marginal benefits outweigh the costs? Why or why not?

Note that this is a societal level marginal analysis so your costs and benefits must be societal level. Also, marginal costs are the opportunity costs which you need to identify.

John John a 6-year-old child is fond of playing outside their house during weekends. One day he tried to construct a makeshift house for their “bahay-bahayan” with his younger sister. During the construction, he hit his thumb holding the nail while using the hammer but with no reaction. There are also some scratches in his leg and arm which he got from the bushes around their house looking for materials he can use in the construction of his makeshift house. As he continued pounding the nail, he suddenly shouted and cried with the last strike of his hammer, and released all what he was holding

1. What system is affected?

2. Trace the sequence of events from the time he hit his thumb to the time he shouted and cried based on your knowledge about Nervous System.

3. When he hit his thumb, his hammer fell almost simultaneously with his removal of his hand from his hold of the nail he was holding. What is the reason behind

4. Explain the function of the Calcium in this situation.  

King Ltd enters into a fixed price contract for $18 000 000 to build a train station for Hunter Ltd. It will take 3 years to build the station. The project is expected to be completed by the end of 2020. King Ltd’s estimate of contract costs is $16 000 000 at the commencement of construction. However, the expected costs to complete a construction project can change throughout the project. The following data relates to the project: 2018 2019 2020 Progress billing to date 4 000 000 12 000 000 18 000 000 Cash collection to date 3 500 000 11 500 000 18 000 000 Costs for the year 4 000 000 8 500 000 4 000 000 Costs incurred to date 4 000 000 12 500 000 16 500 000 Estimated costs to complete 12 000 000 4 000 000 — What is the gross profit to be recognised by King Ltd at the end of 2019? a. 500 000 b. 636 363 c. 1 136 363 d. 1 015 152

interest During Construction

Zimmer Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

Capitalization period: January 1, 2016, to June 30, 2017

Expenditures on project:

Amounts borrowed and outstanding:
   $1.5 million borrowed at 10%, specifically for the project
   $7 million borrowed on July 1, 2015, at 12%
   $17 million borrowed on January 1, 2011, at 6%

Required:

Note: Round all final numeric answers to the nearest dollar.

Compute the amount of interest costs capitalized each year.

If it is assumed that the production complex has an estimated life of 25 years and a residual value of $0, compute the straight-line depreciation in 2017.

$

Since GAAP requires accrual accounting, if a company capitalizes interest during the construction period it will report income than if it had not capitalized interest. In future periods, the same company will report income than if it had not capitalized interest.

On December 31, 2016, Flint Inc. borrowed $3,540,000 at 13% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $424,800; June 1, $708,000; July 1, $1,770,000; December 1, $1,770,000. The building was completed in February 2018. Additional information is provided as follows.

Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

December 31, 2017   

Buildings

Interest Expense

Cash

17. When considering a loan, what is the lender looking for as it relates to the sponsorship?

1. Experience in ownership/management of commercial properties
2. Conservative levels of DSCR and LTV throughout the existing portfolio of properties owned by the borrower
3. Good quality credit profile
4. All of the above

18. Once the term sheet is signed and the process leading up to the closing of the loan begins, which third party report takes the longest to prepare and therefore ordered first by the lender?

1. Environmental and Engineering
2. Appraisal
3. Zoning
4. None of the above

19. A developer purchases a piece of land on which (s)he plans to build a 30-unit multifamily building with 4 retail spaces on the ground floor. What type of loan is (s)he most likely to get for the construction period?

1. Short term construction (bridge) floating rate loan
2. 10-year fixed rate loan with a 30-year amortization schedule
3. 5-year fixed rate first mortgage
4. None of the above

20. What are the main points to look for in the term sheet?

1. Loan amount and maximum LTV
2. Interest rate, loan term and prepayment penalty
3. Borrower’s experience qualification requirements
4. a and b
5. All of the above

Can you please solve this problem. The correct answer that should be found is below. Thank You

Early in 2015, Logan Corporation engaged Reese, Inc. to design and construct a complete modernization of Logan's manufacturing facility. Construction was begun on January 1, 2015 and was completed on December 31, 2015. Logan made the following payments to Reese, Inc. during 2015:

In order to help finance the construction, Logan issued $2,000,000 of 10-year, 9% bonds payable, issued at par on January 2, 2015, with interest payable annually on December 31.

In addition to the 9% bonds payable, the only debt outstanding during 2015 was a $500,000, 12% note payable dated January 1, 2010 and due January 1, 2020, with interest payable annually on January 1 and a $1,000,000, 10% bond payable dated July 1, 2011 due June 30, 2021 with interest paid annually.

Compute the interest to be capitalized in 2015. Logan uses the specific interest method. Show computations. The correct answer should be $244,200

Problem 2 (18 minutes) The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the coming month of the "Snooper" are given below, based on sales of 40,000 units. Sales (40,000 units) $1,600,000 Less: Cost of goods sold 1,120,000 Gross margin $ 480,000 Less: Operating expenses 100,000 Operating income $ 380,000 Cost of goods sold consists of $800,000 of variable costs and $320,000 of fixed costs. Operating expenses consist of $40,000 of variable costs and $60,000 of fixed costs. Required: a. Calculate the break-even point in units. b. How many units must be sold to generate an operating income equal to 15% of sales? c. Using the degree of operating leverage, calculate the percentage increase in operating income that would result if sales were to increase by 25% over the budgeted amount. d. Management wants to increase sales and feels that this can be done by cutting the selling price by 10% and increasing the advertising budget by $20,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made? Use incremental analysis.

Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $13.00 million fully installed and will be fully depreciated over a 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.25 million per year and increased operating costs of $561,639.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. If Caspian Sea Drinks uses a 12.00% discount rate, then the net present value of the RGM-7000 is _____. Currency: Round to: 2 decimal places.

Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.33% coupon bonds which sell for 97.81% of par. Their stock currently has a market value of $24.72 and Mr. Bensen believes the market estimates that dividends will grow at 3.92% forever. Next year’s dividend is projected to be $2.91. Assuming a marginal tax rate of 35.00%, what is their WACC (weighted average cost of capital)? Percentage Round to: 2 decimal places