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# Mary Ticchione

108508
Jan 2011
• Responses: 4908

## Education

• PhD, Northcentral University, In Progress
• MS, Regis University , 2011
• CFE, Association of Certified Fraud Examiners, 2010

## Subjects

• Law
• International Development
• Statistics

Mary is an enrolled agent and is enrolled to practice before the Internal Revenue Service. She received her undergraduate and graduate accounting degrees from Regis University in Denver, Colorado, where she graduated in the top 1% of her class. She is the Chief Executive Officer of one of the largest privately owned public accounting firms in Northeast Ohio. Mary holds the CFE designation and has special training in the auditing and forensic accounting fields. She has worked as a BrainMass Expert since March 2011 and has answered over 7,000 student questions. Her special interests are tax fraud and Sarbanes-Oxley compliance.

## Solution Library

### Reacher Technology has consulted with investment bankers and determined the interest rate it would pay for different capital structures, as shown below. Data for the risk-free rate, the market risk premium, an estimate of Reacher's unlevered beta, and the tax rate are also shown below. Based on this information, what is the firm's optimal capital structure and what is the weighted average cost of capital at the optimal structure? Percent Financed with Debt (wd) Before-tax Cost Debt (rd) Input Data Risk-free rate 4.5% Market risk premium 5.5% Unlevered beta 0.8 0% 6.0% Tax rate 40.0% 10% 6.1% 20% 7.0% 30% 8.0% 40% 10.0% 50% 12.5% 60% 15.5% 70% 18.0% Fill in formulas in the yellow cells to find the optimum capital structure. Debt/Value Equity/Value Debt/Equity A-T Cost of Levered Cost of Ratio (wd) Ratio (ws) Ratio (wd/ws) Debt (rd) Beta Equity WACC 0% 1.0 0.00 10% 0.9 0.11 20% 0.8 0.25 30% 0.7 0.43 40% 0.6 0.67 50% 0.5 1.00 60% 0.4 1.50 70% 0.3 2.33 WACC at optimum debt ratio = Optimum debt ratio =

See attached file.

Chapter 15. Ch 15-12 Build a Model

Reacher Technology has consulted with investment bankers and determined the interest rate it would pay for different capital structures, as shown below. Data for the risk-free rate, the market risk premium, an estimate of Rea READ MORE »

Business / Finance / Weighted Average Cost of Capital (WACC) » 449920

### The best form of business ownership

1. For each of the following small businesses, describe the best form of business ownership: sole proprietor, partnership, or corporation. The small businesses include the following:

* Retail electronics
* Software developer

2. Justify and expl READ MORE »

### Subchapter S; S corporations; Lang Corporation; S corporation stock purchases

1. What are the eligibility requirements that a corporation must meet in order to qualify under Subchapter S?

2. What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships?

### Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The Federal Trade Commission is reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The Federal Trade Commission is reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase marke READ MORE »

Business / Finance / Capital Structure and Firm Value » 403515

### 20) If taxes or special assessments are levied by the General Fund and then-transferred to the debt service fund, they are: A. included as transfers out in the General Fund but are not budgeted as revenue in that fund B. recorded as revenues of the debt service fund C. recorded as an expense and voucher payable by the general fund and are recorded as a revenue and receivable by the debt service fund. D. included in the revenues budget of the general fund and budgeted by that fund as transfers out to the debt service fund 21) What type of serial bond schedules an increase each year in annual principal repayment approximately equivalent to the decrease in interest payments? A. Annuity B. Regular C. Irregular D. Deferred 22) A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of \$l,000,000; (2) a transfer from the General Fund to an enterprise fund in the amount of \$1,200,000; and (3) a transfer from the General Fund to an internal service fund in the amount of \$400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: A. \$1,200,000 B. \$2,600,000 C. \$ 800,000 D. \$1,400,000 23) A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of \$30 million, including capital outlay expenditures of \$2 million. Capital assets for that government cost \$70 million, including land of \$10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect: A. a decrease of \$3 million B. a decrease of \$1 million C. an increase of \$2 million D. an increase of \$ l million 24) A government's Statement of Revenues, Expenditures and Changes in Fund Balances reflected proceeds of bonds in the amount of \$1,000,000. That statement also reflected expenditures for debt service in the amount of \$3,000,000, including \$2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a: A. \$1,600,000 increase B. \$1,000,000 increase C. \$1,600,000 decrease D. \$1,000,000 decrease 25) What are the three major sections of the Comprehensive Annual Financial Report? A. Introductory Section, Financial Section, Budgetary Comparison. B. Introductory Section, Financial Section, Statistical Section. C. Introductory Section, Financial Section, Reporting Infrastructure. D. Introductory Section, Financial Section, Management Discussion and Analysis. 26) Under GASB rules for the financial reporting entity: A. blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements B. component units are included if the primary government is financially accountable for their operations C. component units must be reported in columns (discrete presentation) separate from the funds of a primary government D. counties are component units of the State Government 27) In governmental fund statements revenues are reported by ________ and expenditures are reported by _______ and by _________. A. Function, character, source B. Source, character, function C. Function, function, source D. Source, source, character 28) According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30? A. Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred B. Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted C. Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises D. Recognize the entire amount of revenues and expenses in the year in which the term began

20) If taxes or special assessments are levied by the General Fund and then-transferred to the debt service fund, they are:

A. included as transfers out in the General Fund but are not budgeted as revenue in that fund

B. recorded as revenues of the debt service fund

C. recorded as READ MORE »

Business / Business Philosophy and Ethics / The Role of Government and Regulation » 453787