A firm is considering borrowing​ $1

million at an annual interest rate of​ 6%. Assume that before considering this capital restructuring​ , the firm has total debt of​ $4 million at an annual interest rate of​ 7% and annual depreciation expense of​ $400,000. Assuming EBIT of​ $600,000, what is this​ company's cash coverage ratio​ (a) before; and​ (b) after the proposed​ restructuring?   

A. ​3.57; 2.94

B. ​2.94; 3.57

C. ​7.28; 14.29

D. ​5.00; 14.29

A firm has been offered a loan of​ $5 million from two different lenders. Lender A would charge an annual rate of​ 6% whereas Lender B would charge a rate of​ 8%. Assuming annual EBIT of​ $600,000 and annual depreciation expense of​$400,000, what would be the​ firm's cash coverage ratio if it undertook the loan from​ (a)

A. ​2.00; 2.33

B. 3.33; 2.50

C.​ 2.50; 3.33

D. 2.33; 2.00

Lender​ A; and​ (b) Lender​ B?   

1. CMA Ltd currently has an enterprise value​ (that is, present value of future free cash flows) of $400 million and $100 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose CMA uses its excess cash to repurchase shares. In the near future there news is scheduled to come out that will change​ AMC's enterprise value to either $600 million or $200 million.

1. Suppose CMA management expects good news to come out. If management’s goal is to maximize price per share, what would be optimal for CMA to do – purchase shares before the news or after the news? Explain, provide necessary computations

2. Now answer question a) assuming that CMA management expects bad news to come out.

3. Suppose CMA announces stock repurchase program before the news release date. What would you expect the announcement to have on the stock price? Why?

PROBLEM 1 Gomez Corporation, a manufacturer of household paints, is preparing annual financial statements at December 31, 2011. Because of a recently proven health hazard in one of its paints, the government has clearly indicated its intention of having Gomez recall all cans of this paint sold in the last six months. The management of Gomez estimates that this recall would cost $800,000

. Part A - What accounting recognition, if any, should be accorded this situation?

Part B - How would your answer change to Part A if 70% of the paint cans were sold before 12/31/2011 and the remainder were sold after 12/31/2011 but before the financial statements were issued on 3/5/2012?

Part C - How would your answer change to Part A if the health hazard was only alleged (but not yet probable) when the 2011 financial statements were published.

Please Answer the following problem 1 and 2. write clearly.

PROBLEM 1

A 5.96 − kg block is placed against a compress spring on a frictionless 27.0 degrees incline. The spring,

whose force constant is 2.5 N/cm, is compressed 21.3 cm, after which the block is released. How far up

the incline will the block go before coming to rest? Measure the final position of the block with respect

to its position just before being released. Consider two cases:

(a) the block is firmly attached to the spring, and

(b) the block is not attached to the spring and can loosely move up the incline

PROBLEM 2

During a rockslide, a 524 − kg rock slides from the rest down the hill slope that is 488 m long and

292 m high. The speed of the rock when it reaches the bottom of the hill is 62.6 m/s. How much

mechanical energy does the rock lose in the slide due to friction.

Kara is a 14-year-old, 125-pound, high school basketball player. She has been feeling fatigued and sore lately, and has been sick three separate times in the last 3–4 months. Kara typically eats the following on a daily basis:
7 AM: 10–12 oz orange juice (at home before school)
11:30 AM: 2 cups macaroni and cheese, and a small fruit cup (lunch in school cafeteria)
3 PM: granola bar (before basketball practice)
7 PM: 2–3 cups spaghetti with tomato sauce, 1 piece garlic bread, 10 oz skim milk (at home after practice)
10 PM: 2 cups ice cream (bedtime snack)
Why is Kara feeling fatigued, sore and sick? What dietary recommendations would you give to Kara? Please be specific with your recommendation, especially regarding protein intake

The government of Markville started charging an excise tax on gasoline. After one year, it was found that gasoline demand was not different from that before the imposition. The governor of Markville argues that the excise tax has no burden because it showed no change in demand. She also argues that a gas tax can be a relatively efficient way to raise tax revenue. Evaluate her arguments. Note: Let X-axis denote gasoline, and Y-axis denote other goods.

1. Analyze the argument at an individual level. Draw an indifference curve and income line. Show how the demand was different before the imposition.

   a) Analyze the argument at a market level. Draw a supply and demand curve of gasoline. Feel free to attach your illustration. Show how the demand was not changed by the imposition.

b) What is the magnitude of the deadweight loss? What problems can we expect when the government increases the proportion of excise tax?

1. A water slide is constructed so that swimmers, starting from rest at the top of the slide, leave the end of the slide traveling horizontally. As the drawing shows, one person hits the water 5.00 m from the end of the slide in a time of 1.500 s after leaving the slide. Ignoring friction and air resistance, find the height H in the drawing. The answer is 11.6 m (please explain)

2. An extreme skier, starting from rest, coasts down a mountain slope that makes an angle of 25.0° with the horizontal. The coefficient of kinetic friction between her skis and the snow is 0.200. She coasts down a distance of 12.6 m before coming to the edge of a cliff. Without slowing down, she skis off the cliff and lands downhill at a point whose vertical distance is 4.30 mbelow the edge. How fast is she going just before she lands? The answer is 12 m/s. Please explain!

My physics teacher explained the difference between voltage and current using sandwiches. Each person gets a bag full of sandwiches when they pass through the battery. Current = the number of people passing through a particular point per unit time. Voltage = the (change in) number of sandwiches per person. In a parallel circuit the number of people (current) is divided between the two paths, but the number of sandwiches per person (voltage) remains the same. In a series circuit the number of people passing through a particular point remain the same, but they drop off a certain percentage of their sandwiches at every resistor. Therefore, there is a voltage drop that occurs between the points before and after every resistor.

This analogy naturally leads to the question: how do the electrons "know" that they are going to have to share their voltage between two resistors before they reach the second one? (In other words, not drop off all their sandwiches at the first resistor they find)

Purple Company has $200,000 in net income for 2017 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and has no dependents. She claims the $6,350 standard deduction, and her personal exemption is $4,050 for 2017. Purple Company is Kirsten's only source of income.

Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations.

Click here to access the corporate tax table and 2017 individual tax rate schedule to use for this problem.

When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar.

a. If Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year, Kirsten 's taxable income is
$, and her after-tax income is $.

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Business operations can be conducted in a number of different forms. Among the various possibilities are the following: Sole proprietorships; Partnerships; Trusts and estates; S corporations; Regular corporations and Limited liability companies. For Federal income tax purposes, the distinctions among these forms of business organization are very important.

b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten. Purple Corporation's after-tax income is $ and Kristen's after tax income is $.

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Incorrect

c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $138,750. Kirsten's after-tax income is $.

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Incorrect