Please help with the following: If a company has 10 million shares outstanding, now trading at $55 per share and the rate of return for the stock holders is about 12%. The company also issued long term bonds at a 7% interest rate. It pays 35% in taxes What is after tax cost of WACC? How much higher would the WACC be
The following data describes an economy: Transfer Payments $72 Interest paid by consumers 4 Net exports 4 Indirect Business taxes 47 Net foreign Factor Income 2 Net Nonbusiness Interest Income 10 Contribution for Social Insurance 35 Personal Taxe
What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves? Explain what happens if a household looses half of their income, using a budget constraint and indifference curves in your discussion.
2) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). national income Y = 5,200 budget deficit BuD = 150 disposable income YD = 4,400 trade deficit TD = 110 consumption C = 4,100
You are given the following info about a companies Long term debt outstanding $300,000 Current yield to maturity 8% # of shares of common stock 10,000 Price per share $50.00 book value $25 expected rate of return of stock 15% What is the companies cost of capital? Ignore tax
A consumer must divide $250 between teh consumption of product X and product Y. The relevant market prices are Px= $5 and Py= $10. a. Write the equation for the consumers budget line. b. Illustrate the consumers oppurtuinity set in a carefully labeled diagram. c. Show how the consumers opportuinity set changes when the p
Need some ideas for a paper about 750 words on this topic..... You are an economics advisor to a U.S. Senator. The Senator is interested in sponsoring legislation to address the impact of rapidly rising medical costs, and has commissioned you to write a briefing paper on the subject. You know medical costs have risen faster
AC556 Week 6 Problem Flexible Budget and Variances NOTE: It is expected that this problem will be completed using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Grant Company had developed a Static Budget for 2005 for one of its major departments. By the
Watson Leisure Time Sporting Goods has improved operations over time and the company needs to make a decision related to an equipment decision . The company plans to purchase a new piece of equipment (to be used over a six year period) for $320,000. Assume the cash flows and depreciation (based upon the use of the 5-year MAC
1 page You have been hired at a new job and will earn $30,000 in wages. Assume you are single and receive no deduction or any other credits. The current income tax table is the following: The tax rate on Social Security is 6.2%. The tax rate on Medicare is 1.45%. Calculate the total you will pay in income, Social Security
AC556 Week 5 Problem Cash Budget Note: It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Hale Company is currently working on its cash budget for the coming year. The following information is availab
Should I lease or buy a car? Provide an Executive Summary,definition, factors or Costs,measurement, analysis and Summary.
Please help with the following finance problems. Provide at least 100 words. Analyze the impact of excise taxes on gasoline. 1. Find the excise (and other taxes) on a gallon of gasoline in your home state. 2. Find the excise (and other taxes) on a gallon of gasoline in two neighboring (or nearby) states. ( INDIANA AND OHI
A summary of the categories of externalities (positive and negative, production and consumption) and how the affect the efficiency of markets.
AC556 Week 3 Problem Production Budgets Note: It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Hale Company finished their sales projections for the coming year. The company produces one product. Par
Earnings are extremely important to a publicly traded company and the creditors and investors of that company. However, looking at earnings without regard to the quality of those earnings is hazardous to the health of creditors and investors. 1. Why is the determination of earnings quality and persistence importa
At the end of 2005, Uma Corporation was considering undertaking a major long-term project in an effort to remain competitive in its industry. The production and sales departments determined the potential annual cash flow savings that could accrue to he firm if it acts soon. Specifically, they estimate that a mixed strea
Deflections, LLC, currently net leases its headquarters office building for $70,000 per month, and this lease has two years left to run. (Under a commercial fully net lease, the tenant pays for all maintenance, repairs, insurance and property taxes.) Deflections considers the rent to be less than the current market rate, but ex
Managers are very interested in how a consumer makes choice among alternatives. In this exercise, we ask you to consider the price of gasoline you may purchase to operate your automobile in any month and any alternatives available to you assuming your net income available to make those purchases. Also assume gasoline prices for
1. (1 point) Key Financial Data Dreamscape, Inc. Industry Average Ratio For the Year Ended For the Year Ended (% of Sales) December 31, 2004 December 31, 2005 Cost of goods sold 74.5% 70.0% Gross profits 25.5 30.0 Selling expense 8.0 7.0 Gen. & admin. expense 5.1 4.9 Depreciation expense 2.4 2.0 Total operating expens
AIDS INSURANCE Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus. The third policy does not cover HIV or AIDS related illnesses. All insurance pol
Go to the following Web site, www.census.gov, and select Poverty. Then use the information on this site to answer the following questions: What is the official poverty line? Is the number of people higher or lower than it was last year? Ten years ago? Why? How many states had an increase in the poverty rate compared t
Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). National income Y = 5,200 Budget deficit BuD = 150 Disposable income YD = 4,400 Trade deficit TD = 110 Consumption C = 4,100
What's wrong with the following statement? The most important attribute of any government budget is that it be a balanced budget, regardless of how that fiscal balance is achieved.
Majestic Mining Corporation (MMC) is negotiating the purchase of a new piece of equipment for its current operations. MMC wants to know the maximum price that it should be willing to pay for the equipment. You are given the following facts: a. The new equipment would replace existing equipment with a current market value of
Please see attached word doc, with full details. DataPoint Engineering is considering the purchase of a new piece of equipment for $220,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require and additional initial investment of $120,000 in nondepreciable working capital. Thirty thousand dollar
Budget Constraints What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves? Explain what happens if a household looses half of their income, using a budget constraint and indifference curves in your discussion.
I need an example on how to perform an income statement, a balance sheet and a cash budget. I have attached an example very similar to the assignment I most complete.
1. Many executives will save an organizations money by not having auto insurance on the fleet of company vehicles, whereas, in their personal finances, they will carry insurance on their family car. Take something from your experience that illustrates the difference in attitude from the point of view for an individual to an orga
In Moline, Il, a man busted his windshield when a one pound piece of hail smashed into his car windshield. He had his car repaired by Safe Auto Glass, which advertised that it provided a free box of AB steaks with every windshield repair. The value of the AB steaks was $60. Safe Auto Glass charged the man's car insurance comp