Bruin Inc. will have earnings of $15 million next year and is projected to grow at a constant rate of 6 percent forever. All earnings are paid out as dividends to shareholders. The company plans to launch a new project three years from now that will cost $10 million. The project will increase the firm's annual earnings by a constant $8.3 million every year forever starting one year later (i.e. 4 years from now). What is the market value of the company stock? The discount rate is 10.3 percent

Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year.

May 18 Issues 25,000 additional shares of $1 par value common stock for $35 per share.

May 31 Repurchases 6,000 shares of treasury stock for $44 per share.

July 1 Declares a cash dividend of $1 per share to all stockholders of record on July 15.

Hint: Dividends are not paid on treasury stock.

July 31 Pays the cash dividend declared on July 1.

August 10 Reissues 2,900 shares of treasury stock purchased on May 31 for $49 per share.

Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

the number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in million) are shown in the table. Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 576. The equation of the regression line is ý = 32.688x + 17,464.523.

Issues, x 412 458 700 483 483 392 52 75 176 170

proceeds 17,976   29,418 43,736 30,522 36,578 35,848 20,092, 11,034 31,749 28,865

construct and interpret a 95% prediction interval for the proceeds when the number of issues is 576.

select the correct choice below and fill in the answer boxes to complete your choice.
(round to the nearest million dollars as needed. type your answer in standard form where "3.12 million" means 3,120,000)

A. we can be 95% confident that when there are 576 issues, the proceeds will be between $____ and $_____

or
B. There is a 95% chance that the predicted proceeds given 576 issues is between $___ and $____

Pearl Corp. is expected to have an EBIT of $2,600,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $115,000, and $155,000, respectively. All are expected to grow at 16 percent per year for four years. The company currently has $13,500,000 in debt and 1,150,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 9.2 percent and the tax rate is 23 percent.

What is the price per share.

Springstein began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 34,000 units at $39 each. Costs incurred were:

If there were no variances, the company's variable-costing income would be:

$114,500.

$544,000.

$29,000.

None of these.

$86,000

Springer began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 36,000 units at $40 each. Costs incurred were:

If there were no variances, the company's absorption-costing income would be:

None of these.

$720,000.

$206,300.

$291,800.

$281,300.

Highway Company reported the following costs for the year just ended:

If Highway uses throughput costing and had sales revenues for the period of $1,002,000, which of the following choices correctly depicts the company's cost of goods sold and income?

Choice A

Choice B

Choice C

Choice D

Choice E

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $91 per unit, and variable expenses are $61 per unit. Fixed expenses are $833,400 per year. The present annual sales volume (at the $91 selling price) is 25,100 units.

Required:

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.)

  3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

  4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)? (Do not round intermediate calculations.)

A magazine published data on the best small firms in a certain year. These were firms which had been publicly traded for at least a year, have a stock price of at least $5 per share, and have reported annual revenue between $5 million and $1 billion. The table below shows the ages of the chief executive officers for the first 68 ranked firms.

(a) What is the frequency for CEO ages between (but not including) 54 and 65? (Enter your answer as a whole number.)


(b) What percentage of CEOs are 65 years or older? (Round your answer to the nearest whole number.)
%

(c) What is the relative frequency of ages under 50? (Round your answer to two decimal places.)


(d) What is the cumulative relative frequency for CEOs younger than 55? (Round your answer to two decimal places.)

Q2. Distance (000, miles) traveled by a truck in a year is distributed normally with μ = 50.0 and σ = 12.0.

       Find

a. the proportion of trucks are expected to travel from 34.0 to 59 (000, miles)? (0.6816)

b. the probability that a randomly selected truck travels from 34.0 to 38.0 (000, miles)? (0.0669)

c. the %age of trucks that are expected to travel either below 30.0 or above 59.0 (000 miles) ? (27.41)

d. how many of the 1000 trucks in the fleet are expected to travel from 30.0 to 59.0 (000 miles)? (726)

e. how many miles will be traveled by at least 80% of the trucks? (40, 000 miles)

Jose, age 70 and ½ in October of this year, worked for several companies over his lifetime. He has worked for the following companies (A – E), and still has the following qualified plan account balances at those companies. Jose is currently employed with Company E. What is his required minimum distribution for the current year from all plans? Life expectancy tables are 27.4 for age 70 and 26.5 for age 71.

Current (year 0) price of the shares of Company ABC is $50. There are 1 million shares outstanding. Next year (year 1)’s dividend per share is $2, which represents a 60% payout from earnings (net income). Investors expect a ROE of 20%, and a constant growth.

(Please solve e, f, g. Ignore a - d) (Please show your work)

a. What will be the dividend per share in year 2 and year 3?

b. What is the current market value of the firm?

c. What will be the value of the firm next year after the payout?

Suppose that the company announces that it will increase its dividend from $2 per share to $4 per share next year (year 1), and that the extra cash needed will be financed by issuing new shares. However, total dividends after next year follow the old schedule.

d. What will be the price of the new shares that the firm issue in year 1? How many new shares will beissued?

e. How much dividend will the old shareholders get in year 2?

f. Calculate the old shareholder’s present value (today) of discounted future dividends, under the new policy. What should be the current stock price under the new policy?

g. Comment on the important assumptions made in this calculation. How would your answer to f) change if the assumptions are changed?