Question 1
Answers need to be done in excel full works showed 7-2 Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e. D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of Boehm?s stock? 7-4 Nick?s Enchiladas Inc has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock?s required rate of return? 7-5 A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company?s dividend will grow at a rate of 20% a year for the next 2 years, then at a constant rate of 7% thereafter. The company?s stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock?s current price? 9-2 LL Incorporated?s currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL?s after-tax cost of debt? 9-4 Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on the market for $70. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock? 9-5 Summerdahl Resort?s common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 = $3), and the dividend is expected to grow at a constant rate of 5% a year. What is its cost of common equity? 9-6 Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4% and the yield on a 10 year T-bond is 6%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 15%. What is the estimate cost of common equity using the CAPM? 9-7 Shi Importer?s balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi?s tax rate is 40%, rd = 6%, rps = 5.8% and rs = 12%. If Shi has a target capital structure of 30% debt, 5% preferred stock and 65% common stock, what is its WACC?
Question 2
Balance Sheet Cash 3.5 Accounts Payable 9 Receivables 26 Notes Payable 18 Inventories 58 Accruals 8.5 Total Current Assets 87.5 Total Current Liabilities 35.5 Net Fixed Assets 35 Long Term Debt 6 Common Stock 15 Retained Earnings 66 Total Assets 122.5 Total Liabilities & Equity 122.5 Sales for 2010 were $350,000,000 and net income for the year was $10.5 million, so the firm?s profit margin was 3.0%. Upton paid dividends of $4.2 million to the common shareholders so its payout ratio was 40%. Its tax rate is 40%., and it operated at full capacity. Assume that all assets/sales ratios, spontaneous liabilities/sales ratios, the profit margin, and the payout ratio remain constant in 2011. Sales are projected to increase to $70,000,000, or by 20%, during 2011. Assuming all existing relationships remain constant: a. Calculate the required assets that will be required to support the projected increase in sales. b. Calculate the spontaneous liabilities that will arise with the increase in sales c. Calculate the AFN to determine Upton?s projected external capital requirements. d. Use the forecasted financial statement method to forecast Upton?s balance sheet for December 31 2011. Assume that all additional external capital is raised as a bank loan at the end of the year and is reflected in notes payable (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt), assume of pens profit margin and dividend payout ratio will be the same in 2011 as they were in 2010. What is the amount of the notes payable reported on 2011 forecasted balance sheet? (Hint: you don?t need to forecast the income statements because you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate 2000 weapon addition to retained earnings for the balance sheet.) This is my first time using this site. I am not really sure how it works. Can I pay for only this question or do I need to sign up monthly because I just needed these answers. Please let me know. How much would you charge for this problem?
Question 3
Church Company completes the following transactions during March, its first month of operations (terms for all its credit sales are 2/10, n/30). Mar. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $17,800 plus sales tax of $1,246. 3 Sold merchandise on credit to Linda Witt, Invoice No. 855, for $9,300 plus sales tax of $651. 10 Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $5,600 plus sales tax of $392. 27 Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $14,310 plus sales tax of $1,002. 28 Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,345 plus sales tax of $304. In addition to the above transactions, Church has the following nonsales transactions. Mar. 12 Received cash payment from Min Cho for the March 2 sale less the 2% cash discount. 13 Received cash payment from Linda Witt for the March 3 sale less the 2% cash discount. 20 Received cash payment from Jovita Albany for the March 10 sale less the 2% cash discount. 30 Issued a credit memorandum of $400 (plus a $28 sales tax refund) for damaged goods from the sale to Linda Witt made on March 28. Required: Record each cash receipt (less any cash discount) as a general journal entry. Also, record any sales return as a general journal entry. (Round your answers to the nearest whole dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit Mar. 12 Mar. 13 Mar. 20 Mar. 30
Question 4
In this assignment, you will engage in analyzing the marketing research process and ethical concerns that marketing research managers must consider while conducting research. Write a 2-3 page APA style formatted critical essay, answer the following questions: Question 1. Using the steps of the research process to structure your thinking, analyze the following marketing research scenario based on your understanding of the Chapter 1 and Chapter 2 readings: The FlyRight Airline Company was interested in altering the interior layout of its aircraft to suit the tastes and needs of an increasing segment of its market businesspeople. Management was planning to reduce the number of seats and install small tables to enable businesspeople to work during long flights. Prior to the renovation, management decided to do some research to ensure that these changes would suit the needs of the passengers. To keep expenses to a minimum, the following strategy was employed: Questionnaires were completed by passengers during flights. Due to the ease of administration and collection, the questionnaires were distributed only on the short flights (those less than one hour). The study was conducted during the second and third week of December, as that was when flights were full. To increase the response rate, each flight attendant was responsible for a certain number of questionnaires. Management thought this was a good time to acquire as much information as possible; hence, the questionnaire included issues apart from the new seating arrangement. As a result, the questionnaire took 20 minutes to complete. Question 2. In marketing as in other aspects of business, it is critical that professionals make sure to act in an ethical manner both legally and socially. In this age of interconnectedness, one unethical move can become an Internet video or comment that spreads rapidly, not just locally but potentially throughout the world. From a marketing standpoint, it is critical to take into account the impact of an organization?s decisions on other people and the environment. Consider the following situations. For each, discuss whether or not the action was morally ethical under the three methods of ethical reasoning (i.e., utility, rights, and justice approaches). a. The director of research for a financial institution, noting that the deadline for an important research report was fast approaching, decided to cut the required sample size in half and instructed her researchers not to mention the sample size on any of the slides that would be prepared for presentation to decision makers. She justified her actions by explaining that the research wasn?t all that important anyway and ?certainly not worth the cost of potentially having to fire workers if the report wasn?t issued in time.? b. One of the researchers in the previous example also recognized that the project wasn?t going to be completed by the deadline. Fearing for his job?and working on his own?he proceeded to complete a number of surveys ?106 in total?at home so that the project could move forward much more quickly. c. Knowing that many respondents want to ?help? a researcher by supplying the answers that they think the researcher wants to hear, a marketing researcher for a well-known department store began sending surveys from the unknown ?Taylor Research Group? instead of using the company?s name on the cover letter. He noted that after making the change, the responses to customer satisfaction questions became less positive.
Question 5
Wade (SS# XXXXX) and Maddy (SS# XXXXX) Brown are married and file a joint income tax return. Their address isXXXXX Melrose, Florida. They have a six-year old child, Linda (SS# XXXXX) who is a full-time first-grader and they provide 100% of her support. Wade is employed as a steelworker, and Maddy operates a small, unincorporated tee-shirt printing business (EIN 59-1234567, Business Identification Code 541130). She rents a small office at 1313 MockingBird Lane, Lowell, Florida. Wade and Maddy come to your office to have their 2011 federal income tax return completed. They provide you with the following information: 1. Wade's W-2 showed gross income of $50,000, with $8,200 withheld for federal income tax, and $2,100 withheld for social security taxes (FICA). 2. Maddy's business generated gross receipts of $150,000. During the year, she wrote checks for $104,994 related to her business. Maddy uses the cash method of accounting and she keeps a separate bank account for her business. An Excel spreadsheet that includes a detailed list of Maddy?s expenditures (and a template for computing tax depreciation) is available on my web page. 3. Additional business-related information: ? She received $4,000 on November 11th, from the sale of an old printing machine (the machine was purchased in February 2008). 4. Maddy began her tee-shirt printing business in 2008 and purchased several assets during that year. She did not elect Section 179 expensing (and she elected out of bonus depreciation) at that time because her business was just beginning (with little cash inflow) and her accountant advised her that it would be better to stretch out the deductions over the depreciable lives of the assets. She did not make any capital purchases during 2009 or 2010. The following assets, purchased in 2008, are used 100% for business and have been depreciated using MACRS: ? Printing machine purchased in February 2008 for $16,000 (7-year property). ? Office furniture purchased in April 2008for $5,500 (7-year property). ? Office computer purchased in August 2008, for $3,800 (5-year property). 5. In April, Maddy purchased a light-duty delivery truck (less than 6,000 pounds) to be used exclusively for the business. She did not make any modifications to the truck. The cost of the truck was $24,000. She financed the entire purchase price and has been making $483/month payments since May. Of the total payments made during the year, $875 was for interest. For the current year, they wish to take the maximum Sec. 179 deduction, but do not wish to claim any additional first year depreciation. 6. In July, she purchased a new printing machine for $7,000 cash ? see assumptions for #5 which also apply here. 7. The Brown?s investment activities during the year resulted in the following items of income (or loss): ? Interest received on Ocean Trust Savings Bank account 78 ? Interest received on State of Florida Water District bonds 100 ? ?Qualified? dividends received on Sterling International stock 1,200 These dividends are also ordinary dividends that should be reported on line 9a of Form 1040 8. Wade?s father died during the year. Wade and Maddy collected the $100,000 face value from a life insurance policy on Wade?s father. 9. Maddy's parents gave $25,000 to Maddy, and $15,000 to Linda. 10. The Brown?s itemized deductions totaled $16,700 (do not prepare Schedule A). 11. During the year, the Brown?s sold the following capital assets: Asset Acquired Sold Selling price Adjusted Basis A stock 2-15-11 8-13-11 5,000 11,500 B stock 3-2-05 7-7-11 22,400 21,700 C stock 6-8-01 4-10-11 9,000 12,000 D Stock 2-17-05 12-7-11 5,000 4,500 E Stock 5-11-11 10-11-11 5,000 4,000 Sail boat 12-3-04 3-3-11 2,000 8,500 Note1: The C stock was sold to Maddy?s brother. Note2: The sail boat was used for personal recreation. Required: Prepare the Brown's 2011 federal income tax return. They have asked you to minimize their tax liability to the extent legally possible. Round numbers to the nearest dollar. Clearly state any assumptions made in completing the tax return. Include a depreciation schedule and any supporting schedules. The following 2011 tax forms are required: ? Form 1040: U.S. Individual Income Tax Return ? Schedule C: Profit or Loss from Business ? Schedule D: Capital Gains and Losses ? Schedule SE: Self-Employment Taxes ? Form 4562: Depreciation and Amortization (remember to include a supporting schedule) Optional Information: State/Country relating to question: Florida More info: Client: Maddy (& Wade) Brown Schedule: Cash disbursements Date: December 31, 2011 Description Amount Purchases of T-shirts $50,000 Purchases of printing supplies 14,000 Purchase of new printing machine (July 2011) 7,000 Advertising 1,750 Telephone & utilities 1,495 Gas, oil, insurance, repairs & maintenance on truck 3,500 Truck payments ($483 x 8 months) 3,864 Office rent 9,500 Liability & property insurance 1,300 Purchases of miscellaneous office supplies 1,960 Routine repairs made to old printing machine 650 Wages paid to part-time workers 7,000 Payroll taxes (for part-time employees) 500 Business Meals (with customers) 2,400 Estimated federal tax payments 7,000 Contribution to political campaign of friend who is running for city council 1,500 Contibution to National Libertarian Party 2,000 Occupational license 525 Total cash disbursements $115,944,cancel, already solved this
