Presented below are a number of balance sheet items for Bridgeport, Inc., for the current year, 2017.

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in the order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

Consider a project to supply 100 million postage stamps per year to the USPS for the next five

years. To pursue the project, you will need to install $4.1 million in new manufacturing plant

and equipment. This will be depreciated straight-line to zero over the project’s five years. The

equipment can be sold for $540,000 at the end of the project. You will also need $600,000 in

initial net working capital for the project and an additional investment of $50,000 in every year

thereafter. All net working capital will be recouped at the end of the project. Your production

costs are $.005 per stamp and you have fixed costs of $950,000 per year. If your tax rate is 34%

and your required return is 12%, what bid price should you submit on the contract?

Answer completely and correctly please.

At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

b. What are the budget implications for Craig Kovar?

Craig can see that his present plan will not provide sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $_?_ short  at the end of December, with no time left to adjust.

A company is projected to generate free cash flows of $47 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 11.2%. It has $24 million worth of debt and $6 million of cash. There are 14 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 14, what's your estimate of the company's stock price? Round to one decimal place.

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 49 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.1 pounds, what is the probability that the sample mean will be each of the following?

Appendix A Statistical Tables
a. More than 61 pounds
b. More than 57 pounds
c. Between 55 and 58 pounds
d. Less than 55 pounds
e. Less than 48 pound

.2. The price of a stock is $40. The price of a one-year European put option on the stock with a strike price of $30 is quoted as $7 and the price of a one-year European call option on the stock with a strike price of $50 is quoted as $5. Suppose that an investor buys 100 shares, shorts 100 call options, and buys 100 put options.

Draw a diagram illustrating how the investor’s profit or loss varies with the stock price over the next year. How does your answer change if the investor buys 100 shares, shorts 200 call options, and buys 200 put options?

You buy a 20-year bond with a coupon rate of 9.6% that has a yield to maturity of 10.6%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 11.6%. What is your return over the 6 months?

Many of the topics we touched upon this year are well established ethical questions that the public has debated for many years. Reading deals with a much newer ethical dilemma -- genetic engineering. Recently it has become much more frequent to see stories of scientists working on changing our genetic make up, Questions about some uses of genetic engineering, by Jonathan Glover focuses on both the ethical dilemma as well as the positive gains that can come from it.

Please post a reflection on the readings.

5. Assume that the economy has been growing at 2 % per year. You are an economist working at a Central Bank and need to establish what are the long-run effects of increasing the growth of the money supply to 10 % per year. State and then explain the long-run effects of this change on each of the following (give numerical estimates when possible): a) The annual rate of inflation b) The real interest rate c) The nominal interest rate