A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $900 per month for the next two years and then $1,800 per month for three years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner? (Round your answer to two decimal places.)

What is the expected value with perfect information of the following decision table?

States of nature

A) 5,000         B) 10,000         C) 40,000         D) 60,000         E) 70,000

GCU’s Statement on the Integration of Faith and Work states, “We recognize and embrace the potential of human work for furthering the greater good and strive to further the good of the culture and the society.” Consider how you might approach the following scenario in a manner that is in accord with the spirit of GCU’s perspective of the integration of faith in one’s workplace.

Scenario:

Tones Company purchased a warehouse in a downtown district where land values are rapidly increasing. Gerald Carter, controller, and Wilma Ankara, financial vice president, are trying to allocate the cost of the purchase between the land and the building. Noting that depreciation can be taken only on the building, Carter favors placing a very high proportion of the cost on the warehouse itself, thus reducing taxable income and income taxes. Ankara, his supervisor, argues that the allocation should recognize the increasing value of the land, regardless of the depreciation potential of the warehouse. Besides, she says, net income is negatively impacted by additional depreciation and will cause the company's stock price to go down. (Based on Concepts for Analysis 10-6 from Intermediate Accounting.)

Write a paper (500‐750 words) that addresses the following:

Recommendation of an ethical decision in the scenario.

Explanation of how the ethical decision supports the good of the culture and the society.

Implications of applying a Christian worldview within the accounting workplace, in general.

4. The theory of “rational addiction” states that past, present, and future consumptions of an addictive good such as cocaine are compliments to each other. Describe the idea behind this theory and what it then predicts regarding whether the demand for such a good is more elastic in the short run or the long run. Do the results of the research studies presented in class confirm these predictions? Explain.

A responsible party has been leased an entire building by Max. The lease states it is mandatory for the lessee to have liability insurance. Max

a. doesn't need to carry liability insurance as he is protected sufficiently by the lessee's policy

b. needs to obtain liability insurance, as all parties are named in all suits and expensive defense costs may be incurred or the lessee may not have sufficient liability limits

Which of the following is true?

Assume that there are three possible states of the economy: poor, moderate and booming. XYZ Corp expects to have $350,000 in sales in a poor economy, $500,000 in a moderate economy, and $900,000 in a booming economy. If the chances of a booming economy and poor economy are 10% each, what is the expected amount of sales for XYZ?

A. $500,000B. $512,500C. $525,000D. $621,000E. $805,0008.

Assume a fair coin and consider the following bet: heads I pay you two dollars, tails Which of the following statements is (are) correct?

A. $0B–$0.50C. $0.50D.–$1.00E. $1.00

Which of the following statements is (are) correct?

(x)Financial leverage is the use of debt to increase an investment position and increased financial leverage by a firm can increase the level of firm specific risk (unsystematic risk) for that business.

(y)Firms can quite possibly change their stocks' risk level by substantially changing their business.

(z)If a firm takes on less risky new projects over time, the firm itself will become more risky.

A.(x), (y) and (z)B.(x) and (y) onlyC.(x) and (z) onlyD.(y) and (z) onlyE.(z) only