Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $84, and the book value per share is $7. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $60 million, has a 7 percent coupon, and sells for 94 percent of par. The second issue has a face value of $35 million, has a 8 percent coupon, and sells for 107 percent of par. The first issue matures in 22 years, the second in 4 years. The most recent dividend was $5.6 and the dividend growth rate is 8 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. Required: What is the company's WACC? (Do not round your intermediate calculations.)

Buffy the Vampire Slayer is creating her own slaying company. All the trademarks cost her $150,000 today but she’s sure it’ll pick up soon. Best case scenario, next year she’ll be earning $75,000 and then $50,000 in years 2 and 3, followed by $90,000 in years 4 and 5. These numbers are, of course, dependent on vampire slaying needs in the community. There is a worst case scenario where she only earns $35,000 in the first 3 years then $40,000 in the next 2. The most likely outcome though is earning $45,000 in the first year, $50,000 in year 2, $60,000 in year 3, then $50,000 in year 4, and $45,000 in year 5. If the relevant interest rate was 15%, would you recommend the project? Why or why not?

(Use Excell and use your knowledge about NPV, IRR, and scenario analysis method)

Either the gross method or net method may be used to record sales with cash discounts, but the net method requires a period-end adjusting entry to estimate expected future sales discounts taken. True or False

Under FIFO, the most recent costs are assigned to ending inventory.   True or False

Installment accounts receivable is another name for aging of accounts receivable. True or False

An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employee earnings per calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of total unemployment taxes the employee must pay?

• $434.00

• $56.00

• $0.00

• $378.00

• $101.50

There are two coal-fired power plants located in the vicinity of a major metropolitan area. These power plants emit sulphur dioxide, which causes respiratory issues for the metro population as well as resulting in acidic rainfall. The EPA has determined that the amount of sulphur dioxide emitted needs to be reduced by 169 tons. The marginal abatement cost function for the first power plant is given by MC(x) = 4x and the marginal abatement cost function for the second power plant is given by MC(y) = 9y, where x is the amount of emissions reduction done by the first power plant, and y is the amount of emissions reduction done by the second power plant. In order to ensure that the target level of emissions reduction is achieved in the most cost-effective way, what should x be? Please round your answer to 2 decimal places

You are preparing a valuation for a high growth company, Winks Inc. This question concerns the estimation of graduation value. Winks operates in the high-tech waste disposal business. The average mature company in this industry have the following characteristics: Return on equity (most companies in this fictitious industry are all-equity) is 12%; the average mature firm reinvests 55% of net income back into its business; and the cost of equity for the average mature firm is 10%. During its first year of maturity (the first year after graduation), the company is forecast to earn $56M (net earnings).

A)What is the graduation value for the company(measured at date of graduation NOT today)?

B)Management of the company believes it can earn a better than average 13% return on equity, BUT this will require a higher reinvestment rate of 60%. Is this a good strategy (assuming the company is still forecast to earn $56M)?

Internal injuries in vehicular accidents may be due to what is called the "third collision" The first collision is the vehicle hitting the external object. The second collision is the person hitting something on the inside of the car, such as the dashboard or windshield. This may cause external lacerations. The third collision, possibly the most damaging to the body, is when organs, such as the heart or brain, hit the ribcage, skull, or other confines of the body, bruising the tissues on the leading edge and tearing the organ from its supporting structures on the trailing edge.

A) Why is there a third collision? In other words, why are the organs still moving after the second collision?

B) If the vehicle was traveling at 60 mph before the first collision, would the organs be traveling more than, equal to, or less than 60 mph just before the third collision?

Explain your answers in essay form:

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $82, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $135 million, a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $120 million, a coupon rate of 6 percent, and sells for 102 percent of par. The first issue matures in 25 years, the second in 9 years. Suppose the most recent dividend was $4.90 and the dividend growth rate is 5.4 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 23 percent. What is the company’s WACC

you have finally saved $5,000 and are ready to make your first investment. You have the following alternatives for the investing that money:

Dan inc preferred stock paying a dividend of $3.50 and selling for $41 per share. Dan Electric Co common stock selling for $19. the stock recently paid a $3.09 dividend and the firm’s earnings per share have increased from $1.90( to the most recent dividend payment) in 5 years. The firm expects to grow at the same rate for the foreseeable future.

Your required rate of return for these investments is 10% for the preferred stock and 22% for the common stock. Using this information, answer these questions:

1- Calculate the value of each investment based on your required rate of return. (** hint: calculate the growth rate of earrings first)

2- which investment would you select? why?