Which of the following statements are true regarding chemical reactions? T = true and F = false.

A) the more negative the ΔG, the further towards completion the reaction will proceed before equilibrium is reached.

B) only a system not at equilibrium can perform work.

C) for most biochemical reactions in a metabolic pathway, equilibrium is rarely reached.

D) in a closed system, a chemical reaction will proceed spontaneously until the reactants and products are in equal concentration.

On July 1, 2010, SPO Corp. sold a $900 million bond issue to finance the purchase of a new distribution facility. These bonds were issued in $1,000 denominations with a maturity date of July 1, 2040. The bonds have a coupon rate of 8.00% with interest paid semiannually.

Solve the for the following:

1. Determine the value today, July 1, 2020 of one of these bonds to an investor who requires a 6 percent return on these bonds. Why is the value today different from the par value?
2. Assume that the bonds are selling for $1,150.00. Determine the current yield and the yield-to-maturity. Explain what these terms mean.

Explain what layers or textures of risk play a role in the determination of the required rate of return on SPO’s bonds.

For short-answer questions, provide your answers and explanations. For numerical questions, it is important to show your work.

In March 2020, Snow Fun, Inc., made a rights issue at a subscription price of $10 a share. One new share can be purchased for every 3 shares held. Before the issue, there were 12 million shares outstanding, and the share price was $15.

(1) What is the total amount of new money raised?

(2) What is the expected stock price after the rights are issued? Why is the stock price expected to fall after the right issue?

(3) Suppose that the company had decided to issue the new stock at $8 instead of $10 a share, how many new shares would it have needed to raise the same sum of money? Show that Snow Fun’s shareholders are just as well off if it issues the shares at $8 a share rather than $10.

Once unions are organized according to the terms of the NLRA, the union and the employer try to negotiate a collective bargaining agreement to cover all the terms and conditions of employment for employees in the union. The textbook describes "terms and conditions," but the two biggest items are wages and benefits.

As part of this negotiation process, employers and the union must negotiate in good faith. Take a look at the NLRB v. Whitesell Corp. case. Here the employer tried to negotiate to an impasse, then unilaterally impose their conditions on the employees.

How much further do you think the employer should have negotiated before reaching impasse?

Example- I think that the employer should have continued to negotiate until there was truly a deadlock on all outstanding issues. If there had truly been an impasse reached both sides would have held their ground on one or more issues and were unwilling to budge. At that point an impasse in negotiations could have been declared.

XYZ Corp. reported a per share book value of $12 in its balance sheet on December 31, 2019. Analysts are forecasting consensus earnings per share of $1.80 for 2020 and $2.40 for 2021. The required return for common equity is 10 percent. The dividend payout is expected to be 50 percent of earnings.

a) Calculate the intrinsic value per share in early 2020 with a forecast that residual earnings will grow at a long-term GDP growth rate of 4% after 2021.

b) What is the market’s forecast of the residual earnings growth rate after 2021 that is implied by the $36 market price in early 2020?

c) Briefly explain the advantages and disadvantages of the residual earnings valuation model.

BEST CO sponsors a defined benefit pension plan for its employees.

On January 1, 2010, the following balances relate to this plan.

GHS Plan assets 480,000

Defined benefit obligation 625,000

Pension asset/liability 45,000

Unrecognized past service cost 100,000

As a result of the operation of the plan during 2010, the following additional data are provided by the actuary. Service cost for 2010 is 90,000

Discount rate, 9%

Actual return on plan assets in 2010 is 57,000

Amortization of past service cost 19,000

Expected return on plan assets 52,000

Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 76,000

Contributions in 2010 is 99,000

Benefits paid retirees in 2010 is 85,000

Instructions

(a) Using the data above, compute pension expense for BEST Co. for the year 2010 by preparing a pension worksheet that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

(b) At December 31, 2010, prepare a schedule reconciling the funded status of the plan with the pension amount reported on the statement of financial position.