Questions
Rentz Corporation is investigating the optimal level of current assets for the coming year. Management expects...

Rentz Corporation is investigating the optimal level of current assets for the coming year. Management expects sales to increase to approximately $4 million as a result of an asset expansion presently being undertaken. Fixed assets total $2 million, and the firm plans to maintain a 60% debt-to-assets ratio. Rentz's interest rate is currently 9% on both short-term and long-term debt (which the firm uses in its permanent structure). Three alternatives regarding the projected current assets level are under consideration: (1) a restricted policy where current assets would be only 45% of projected sales, (2) a moderate policy where current assets would be 50% of sales, and (3) a relaxed policy where current assets would be 60% of sales. Earnings before interest and taxes should be 11% of total sales, and the federal-plus-state tax rate is 40%.

  1. What is the expected return on equity under each current assets level? Round your answers to two decimal places.
    Restricted policy %
    Moderate policy %
    Relaxed policy %
  2. In this problem, we assume that expected sales are independent of the current assets investment policy. Is this a valid assumption?
    1. Yes, this assumption would probably be valid in a real world situation. A firm's current asset policies have no significant effect on sales.
    2. Yes, sales are controlled only by the degree of marketing effort the firm uses, irrespective of the current asset policies it employs.
    3. Yes, the current asset policies followed by the firm mainly influence the level of long-term debt used by the firm.
    4. Yes, the current asset policies followed by the firm mainly influence the level of fixed assets.
    5. No, this assumption would probably not be valid in a real world situation. A firm's current asset policies may have a significant effect on sales.

    -Select-IIIIIIIVVItem 4
  3. How would the firm's risk be affected by the different policies?

    The input in the box below will not be graded, but may be reviewed and considered by your instructor.

In: Finance

i'm getting an infinite loop on this code: can you explain what I should do? public...

i'm getting an infinite loop on this code: can you explain what I should do?

public class TriviaLinkedList {

private TriviaNode head;

private int items;

public TriviaLinkedList(TriviaNode head, int items) {

this.head = head;

this.items = items;

}

public TriviaNode getHead() {

return head;

}

public void setHead(TriviaNode head) {

this.head = head;

}

public int getItems() {

return items;

}

public void setItems(int items) {

this.items = items;

}

public String toString() {

return "head=" + head + ", items=" + items;

}

  

public void insertList(TriviaNode node){

if(head == null){

head = node;

}

  

else {

TriviaNode node1 = head;

head = node1;

head.next = node1;

}

this.items++;

}

  

public void deleteList(int id){

TriviaNode first = head;

TriviaNode second = head;

while(first!=null) {

  

if(first.getGame().getId() == id) {

if(first == head) {

head = first.next;

}

  

else if(first.next != null) {

second.next = first.next;

}

else {

second.next = null;

this.items--;

System.out.println("Game: "+id+" was deleted");

return;

}

second = first;

first = first.next;

}

      System.out.println("Unfortunately Game: "+id+" was not found");

}

}

}

  

In: Computer Science

why pick propositions of fact on death penalty? (go against death penalty)

why pick propositions of fact on death penalty? (go against death penalty)

In: Psychology

10.1The following table gives Foust Company's earnings per share for the last 10 years. The common...

10.1The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 8.2 million shares outstanding, is now (1/1/20) selling for $77.00 per share. The expected dividend at the end of the current year (12/31/20) is 60% of the 2019 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note that 9 years of growth are reflected in the 10 years of data.)

Year EPS Year EPS
2010 $3.90 2015 $5.73
2011 4.21 2016 6.19
2012 4.55 2017 6.68
2013 4.91 2018 7.22
2014 5.31 2019 7.80

The current interest rate on new debt is 11%; Foust's marginal tax rate is 25%; and its target capital structure is 50% debt and 50% equity.

  1. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places.

    %

    Calculate Foust's cost of common equity. Calculate the cost of equity as rs = D1/P0 + g. Do not round intermediate calculations. Round your answer to two decimal places.

    %

  2. Find Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places.

    %

In: Finance

Silver Lake Resort opened for business on July 1 with eight air-conditioned units. Its trial balance...

Silver Lake Resort opened for business on July 1 with eight air-conditioned units. Its trial balance before adjustment on December 31 in as follows.

Silver Lake Resort, Inc.

Unadjusted Trial Balance

December 31,2014

Debit

Credit

Cash

$ 19,600

Supplies

3,300

Prepaid Insurance

6,000

Land

25,000

Buildings

125,000

Equipment

26,000

Accounts Payable

$6,500

Unearned Rent Revenue

7,400

Mortgage Payable

80,000

Share Capital-Ordinary

100,000

Dividends

5,000

Rent Revenue

80,000

Maintenance and Repairs Expense

3,600

Salaries and Wages Expense

51,000

Utilities Expense

9,400

$273,900

$273,900

Other data for the adjustments (assuming no monthly adjustments before the fiscal year end):

Prepare adjusting journal entries for the following items.

  1. Prepaid insurance of $6,000 was recorded on Sep 1, 2014 and the Insurance expires at the rate of $500 per month
  1. A count of supplies on December 31 shows $1,000 on hand.

  1. Depreciation for the period is $4,500 on buildings and $2,400 on equipment.
  1. Unearned rent revenue of $4,000 out of previous balance $7,400 was now earned for services performed prior to December 31.

  1. Salaries of $1,000 were unpaid at December 31.
  1. Rentals of $3,000 were due from tenants at December 31 (use Accounts Receivables) [not yet received].

Prepare the adjusted trial balance, income statement, statement of retained earnings, and balance sheet. (you may use a separate sheet)

In: Accounting

Deliveroo and TaskRabbit are smaller examples of: A Platforms that have launched the sharing economy B...

Deliveroo and TaskRabbit are smaller examples of:

A Platforms that have launched the sharing economy

B Platforms that disrupted vertically integrated mainframe industry.

C Platforms that disrupted the publishing industry

D None of the above

In: Operations Management

The theory of viscoelasticity is used to describe the behaviour of materials in liquid phase. a....

The theory of viscoelasticity is used to describe the behaviour of materials in liquid phase.
a. Describe an industrial application where viscoelasticity occurs.
b. Describe any two models of viscoelasticity
c. For each of the models, identify a real life engineering problem where it is applied and describe this.
d. How can the knowledge be used in design applications for the problem you identified
above.
e. What are the challenges in the use of the knowledge for solving practical problems.

In: Mechanical Engineering

Construct a SPACE matrix for Ford Motor Company and explain each factor. Prepare tables and charts.

Construct a SPACE matrix for Ford Motor Company and explain each factor. Prepare tables and charts.

In: Operations Management

For this assignment, describe the legal issue(s), discuss the applicable rules of law, explain how to...

For this assignment, describe the legal issue(s), discuss the applicable rules of law, explain how to minimize any legal risks, list any additional facts that would help in making the decision, and resolve the dispute (who wins and why).

The Case

April 28, 2017: Northeast Financing Company sent a commitment letter to Cloister Dairy offering to loan Cloister $900,000 at 10.25 percent interest; the letter provided that acceptance must be in writing within seven days and must be accompanied by a $20,000 letter of credit or cashier’s check.

            May 15, 2017: The president of Cloister Dairy sent a letter of acceptance to Northeast along with a check.

            May 21. 2017: Northeast cashed the check, which went through standard company processing.

            Northeast claims there is no contract. Is there a contract? What rules of law apply?

Is this contract required to be written to be enforceable? Explain.

In: Operations Management

Big Co. purchases shares of Little Co starting on 1/1/21. Little Co. has 100,000 shares of...

Big Co. purchases shares of Little Co starting on 1/1/21. Little Co. has 100,000 shares of stock outstanding.

Relevant data shown below:

1/1/21: Purchased 5,000 shares at $18/share, plus $10 commission.

11/1/21: Little Co. paid common dividends totaling $10,000 12/31/21: Little Co. stock trading at $20/share

4/1/22: Purchased 6,000 shares at $21/share, plus $10 commission

11/1/22: Little Co. paid dividends totaling $10,000

12/31/22: Little Co stock trading at $19/share 3/1/23: Sold 1,000 shares of Little Co stock at $19.50/share, less $10 commission. Assume Big uses FIFO to account for their investment in these shares. Required: Prepare entries to record the preceding transactions, and answer the following questions.

Questions:

1. What is the total cost recorded as the "investment" on 1/1/21?

2. How much of an unrealized gain or loss is reported on the 2021 statement of comprehensive income ("xx,xxx gain" or "xx,xx loss")?

3. How much is received as dividends on 11/1/22?

4. What is the balance in the "investment in Little" account at 12/31/22?

5. What is our TOTAL unrealized gain or loss at 12/31/22? ("xx,xxx gain" or "xx,xxx loss")

6. How much of an unrealized gain or loss is reported on the 2022 statement of comprehensive income ("xx,xxx gain" or "xx,xxx loss")?

7. What was the gain or loss on sale of the shares on 3/1/23 ("xx,xxx gain" or "xx,xxx loss")?

In: Accounting

Question 1 Afariwa farm operates a large farm on which cow are raised. The farm manager...

Question 1
Afariwa farm operates a large farm on which cow are raised. The farm
manager Kofi Manu determined that for the cow to grow in the desired
fashion, they need at least minimum amounts of four nutrients. Kofi
Manu is considering three different grains to feed the cow. The table
below lists the number of units of each nutrient in each kilogram of
grain, the minimum daily requirements of each nutrient for each cow,
and the cost of each grain. The manager believes that as long as a cow
receives the minimum daily amount of each nutrient, it will be healthy
and produce a standard amount of meat. The manager wants to raise
the cow at minimum cost.
Grain 1 Grain 2 Grain 3 Minimum
daily
requirement
(units)
Nutrient A 20 30 70 110
Nutrient B 10 10 0 18
Nutrient C 50 30 0 90
Nutrient D 6 2.5 10 14
Cost (GH¢) 41 36 96
a) Formulate a linear programming model for this problem.
b) Use solver to find optimal solution and sensitivity report.
c) Management have asked you to determine the optimal solution.
Write your answer in a form of a report to be submitted to the
management.
(d) Advice the management about objective function value
corresponding to your answer in (b).

In: Computer Science

Research the System Stability Index (SSI). Write a brief summary of its purpose and why it...

Research the System Stability Index (SSI). Write a brief summary of its purpose and why it might be a useful tool for a server admin.

Research the netstat command-line tool. Write a brief summary of its usage, options, and why it might be a useful tool for a server admin

In: Computer Science

In C++, Mrs. Jones wishes to computerize her grading system. She gives 5 tests but only...

  1. In C++, Mrs. Jones wishes to computerize her grading system. She gives 5 tests but only counts the 4 highest scores. Input the 5 test scores and output the average of the highest four. And using the following grading scale, 90-100 A, 80-89 B, 70-79 C, 60-69 D, and below 60 F, output the student’s letter grade. After creating this code, Modify the above to calculate the grade for all students in the class. The first input value will be the number of students in the class. You will then need to use a loop to input the students’ names as well as their 5 grades. Inside the loop (after calculating the average for the student) you will need to add each student’s average to a sum variable because at the end, you will need to print out the class average as well as each students’ names and letter grades.

In: Computer Science

Adamson Corporation is considering four average-risk projects with the following costs and rates of return: Project...

Adamson Corporation is considering four average-risk projects with the following costs and rates of return:

Project Cost Expected Rate of Return
1 $2,000 16.00%
2 3,000 15.00   
3 5,000 13.75   
4 2,000 12.50   

The company estimates that it can issue debt at a rate of rd = 9%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $4.00 per year at $55.00 per share. Also, its common stock currently sells for $43.00 per share; the next expected dividend, D1, is $5.75; and the dividend is expected to grow at a constant rate of 4% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock.

  1. What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal places.

    Cost of debt:   %

    Cost of preferred stock:   %

    Cost of retained earnings:   %

  2. What is Adamson's WACC? Do not round intermediate calculations. Round your answer to two decimal places.

      %

  3. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept? Project1, Project 2, Project 3, Project 4

In: Finance

Summarize the action(s) taken by the FOMC as per its Press Release and the Decisions Regarding...

Summarize the action(s) taken by the FOMC as per its Press Release and the Decisions Regarding Monetary Policy Implementation on March 15th, 2020.

In: Finance