RAK, Inc., has no debt outstanding and a total market value of $250,000. Earnings before interest and taxes, EBIT, are projected to be $42,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 30 percent lower. RAK is considering a $100,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0.

a. An increase in the price level in an economy will _____.​

b. A decrease in the price level in an economy will _____.​

c. An aggregate demand curve is created by getting different points from :​

d. The aggregate demand curve of an economy illustrates the :​

e. If the consumption spending (C) in an economy increases at a given price level, _____.​

f. If the consumption spending (C) in an economy decreases at a given price level, _____.​

RAK, Inc., has no debt outstanding and a total market value of $150,000. Earnings before interest and taxes, EBIT, are projected to be $28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. RAK is considering a $60,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0.

Kaelea, Inc., has no debt outstanding and a total market value of $82,000. Earnings before interest and taxes, EBIT, are projected to be $8,500 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. The company is considering a $28,200 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 4,100 shares outstanding. Assume the company has a market-to-book ratio of 1.0.

a. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued, assuming no taxes. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the percentage changes in ROE when the economy expands or enters a recession, assuming no taxes. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

Assume the firm goes through with the proposed recapitalization and no taxes.

c. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

d. Calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Assume the firm has a tax rate of 40 percent.

e. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

f. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

I was able to calculate some of the answers that I filled in above. They have already been varified by connect so I only need help with parts c,d, and f

Thanks.

What is wrong with my add and remove method (in bold) under the SongList that it is creating a NullPointerException?

public class Song
{
// instance variables
private String m_artist;
private String m_title;
private Song m_link;

// constructor
public Song(String artist, String title)
{
m_artist = artist;
m_title = title;
m_link = null;
}

// getters and setters
public void setArtist(String artist)
{
m_artist = artist;
}

public String getArtist()
{
return m_artist;
}

public void setTitle(String title)
{
m_title = title;
}

public String getTitle()
{
return m_title;
}
  
public void setLink(Song link)
{
m_link = link;
}

public Song getLink()
{
return m_link;
}
}

-------------------------------------------------------------------

public class SongList
{
// instance variables
private Song m_last;
private int m_numElements;

// constructor
// Do not make any changes to this method!
public SongList()
{
m_last = null;
m_numElements = 0;
}

// check whether the list is empty
// Do not make any changes to this method!
boolean isEmpty()
{
if (m_last == null)
return true;
else
return false;
}

// return the size of the list (# of Song nodes)
// Do not make any changes to this method!
public int size()
{
return m_numElements;
}

// add a new Song to the circular linked list with the given artist and
// title, keeping the list sorted by *song title*.
public void add(String artist, String title)
{
// TODO: implement this method
  
Song newNode = new Song(artist, title);

if(m_last == null)
{
m_last = newNode;
m_numElements++;
return;
}

Song previous = null;
Song current = m_last;



while (current != null)
{
//System.out.println(current.getTitle() + " comparedTo " + title + ": " + (current.getTitle()).compareTo(title));
int compareToResult = (current.getTitle()).compareTo(title);

if (compareToResult < 0)
{
previous = current;
current = current.getLink();
//m_numElements++;


}

else
break;


}

if (previous == null)
{
newNode.setLink(m_last);
m_last = newNode;
m_numElements++;
}

else
{
previous.setLink(newNode);
newNode.setLink(current);
m_numElements++;
}   
}

// remove a Song associated with the given artist and title from the list,
// keeping the list sorted by *song title*.
public boolean remove(String artist, String title)
{
  
Song previous = null;
Song current = m_last;
boolean match = false;
  
while (current != null)
{
int compareToTitle = (current.getTitle()).compareToIgnoreCase(title);
int compareToArtist = (current.getArtist()).compareToIgnoreCase(artist);

if (compareToTitle < 0 && compareToArtist < 0)
{
previous = current;
current = current.getLink();
}
else if (compareToTitle == 0 && compareToArtist == 0)
{
match = true;
current = current.getLink();
  
  
if (previous == null)
m_last = current;
else
previous.setLink(current);
}
else
return match;
}
  
//return match;
return true;

}
  

  
// return a string representation of the list
// Do not make any changes to this method!
public String toString()
{   
String listContent = "";
Song current = m_last;
  
if (m_last != null)

do
{
current = current.getLink();
listContent += " [" + current.getArtist() + " - " + current.getTitle() + "]\n";

} while (current != m_last);

return listContent;
}
}

-------------------------------------------------------------------------------------------------------------------

Minion, Inc., has no debt outstanding and a total market value of $332,100. Earnings before interest and taxes, EBIT, are projected to be $48,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 29 percent lower. The company is considering a $170,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,100 shares outstanding. Ignore taxes for questions a) and b). Assume the company has a market-to-book ratio of 1.0 and the stock price remains constant. a-1. Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Assume the firm goes through with the proposed recapitalization. Calculate the return on equity, ROE, under each of the three economic scenarios. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-2. Assume the firm goes through with the proposed recapitalization. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Castle, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $32,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 15 percent higher. If there is a recession, then EBIT will be 30 percent lower. The firm is considering a debt issue of $80,000 with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 15,000 shares outstanding. Ignore taxes for questions a and b. Assume the stock price remains constant.

a-1. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

Assume the firm goes through with the proposed recapitalization.

b-1. Calculate the return on equity (ROE) under each of the three economic scenarios. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Assume the firm has a tax rate of 35 percent.

c-1. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

c-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

c-3. Calculate the return on equity (ROE) under each of the three economic scenarios assuming the firm goes through with the recapitalization. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

c-4. Given the recapitalization, calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)