Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Calculate return on equity, ROE, under each of the three economic scenarios after the recapitalization. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming the firm goes through with the proposed recapitalization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answer:

Explanation:

Dear student, this question is incomplete, and the beginning missing part is attached in the image below.

From the information attached below,

The market value             90000

No of shares                        3600

Debt expected to be

increased                           34000    

Tax rate                                 0.35

                                                                   Expansion     Recession

EBIT                                       8000             9600              5600

ROE = [tex]\dfrac{Net \ income }{Equity}[/tex]                   5.8%               6.9%               4.0%

% Change in ROE with

expansion and recession                              20%                 -30%

Stocks are offset by debt of equal liquidity in the current capital structure.

Therefore;

Debt                                         34000          Interest            6%

Equity is (market value -

debt expected to be raised)  56000

The net income is:

= (EBIT - Interest) (1 -tax)           3874            4914             2314

The new ROE = [tex]\dfrac{Net \ income }{Equity}[/tex]        6.9%         8.8%                4.1%

% Change in ROE with

expansion and recession                               27%                -40%

Branch Adjustment account is in the nature of :
Real account
O Nominal account
Personal account
>
O None of these
​

EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 4% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 2,500 shares of its own common stock at $14 per share.
Apr. 10 Reissued 1,250 shares of its common stock held in the treasury for $18 per share.
Jun. 12 Reissued 1,250 shares of common stock at $12 per share.
Journalize the transactions.

Stormy Corporation has two service departments (S1 and S2) and two production departments (P1 and P2), and uses the step-down method of cost allocation. Management has determined that S1 provides more service to the firm than S2, and has decided that the number of employees is the best allocation base to use for S1. The following data are available:
Department Number of Employees
S1 10
S2 20
P1 50
P2 70
Which of the following statements is (are) true if S1 and S2 have respective operating costs of $280,000 and $350,000?
Multiple Choice
A. S2 should allocate a portion of its $350,000 cost to S1.
B. S1's cost should be allocated (i.e., spread) over 140 employees.
C. S1's cost should be allocated (i.e., spread) over 150 employees.
D. S2 should allocate a total of $390,000 to P1 and P2.
E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.

Forever Ready Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May for the production of 34,000 batteries are budgeted as follows:
Direct materials $330,600
Direct labor 121,600
Variable factory overhead 34,000
Fixed factory overhead 68,000
Total manufacturing costs $554,200
The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses.
What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places.

The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies. Gecko pays no dividend, whereas Gordon has an expected dividend yield of 6 percent. Suppose the capital gains tax rate is zero, whereas the income tax rate is 40 percent. Gecko has an expected earnings growth rate of 10 percent annually, and its stock price is expected to grow at this same rate.

Required:
If the aftertax expected returns on the two stocks are equal (because they are in the same risk class), what is the pretax required return on Gordon’s stock?

Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 $948 December 31, Year 1 $60 $76 $16 964 December 31, Year 2 60 77 17 981 December 31, Year 3 60 79 19 1,000 Required: 1. What was the bond's issue price

In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are allocated on the basis of the number of purchase requisitions. The Payroll Department had costs of $62,928, and the Purchasing Department had expenses of $29,480 The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000

Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000

Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services.
c. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.

Suppose that the residents of Colgateville play golf incessantly. In fact, golf is the only thing they spend their money on. They buy golf balls, clubs, and tees. In 2019, they bought 1,000 golf balls for $2.00 each, 100 clubs for $50.00 each, and 500 tees for $0.10 each. In 2020, they bought 1,000 golf balls for $2.50 each, 100 clubs for $75.00 each, and 500 tees for $0.12 each. Using 2010 as the base year, answer the following questions.

a. What was the CPI for 2019?
b. What was the CPI for 2020?
c. What was the inflation rate in 2020?

Write a paragraph about Bad customer service

The Wiz Co. owes $60 to its bondholders for the payment of principal and interest. The company expects to have a cash flow of $136 if the economy continues as it is but that cash flow will decrease to $54 if the economy enters a recession. Should the company ever face the real possibility of bankruptcy, it will incur legal and other fees of $30. What amount will the bondholders be paid in the case of a recession

Match the title of the employment-related law to its description. Each label is used only once.

a. This law protects the workers from physical dangers while performing their jobs.
b. This law states that pensions need to be funded properly and directs that employees be kept informed about their pensions.
c. This law placed limits on child labor and set a minimum wage in the United States.
d. This law gives workers the right to take up to 12 weeks of unpaid leave per year for family reasons.

1. Pension Protection Act of 2006
2. Family and Medical Leave Act of 1993
3. Occupational Health and Safety Act of 1970
4. Fair Labor Standards Act of 1938

Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. $fill in the blank ed11a103ff82045_1 b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 396e8209705d02e_2 fill in the blank 396e8209705d02e_3 fill in the blank 396e8209705d02e_5 fill in the blank 396e8209705d02e_6

Last year, Valley Manufacturing reported sales of $800,000, net operating income of $40,000, and average operating assets of $400,000. The company is considering the purchase of equipment that will reduce expenses by $20,000. The equipment will increase average operating assets by $100,000 and be purchased by issuing a notes payable. Sales will remain unchanged. If Valley accepts the project, its return on investment (ROI) after the purchase is projected to

The statement of cash flows (as well as the balance sheet) includes within cash the notion of cash equivalents. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on cash equivalents using the FASB Accounting Standards Codification at the FASB website (www.fasb.org). What is the specific seven-digit Codification citation (XXX-XX-XX) that describes the guidelines for determining what items should be deemed cash equivalents

Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $150,800 (including cash spent for capital assets of $206,000), and net cash provided by financing activities of $78,900. Dividends of $126,900 were paid.

The following wordy, inefficient, and disorganized e-mail message invites department managers to three interviewing sessions to select student interns. However, to be effective, this message desperately needs a radical rewrite.

Your Task. Study the e-mail message and the list of ten weaknesses below the message. Then revise the message to correct each weakness. You revision needs to condense this sloppy 14-sentence message into 6 efficient sentences plus a list, and convey all the necessary information. Make all of your corrections directly to the message.

To: Management Staff
From: Nathan Weintraub

Subject: Interns
Staff:

As you may be aware, we have for the past year been considering changing our approach to interns. Your management council recently made a decision to offer compensation to the interns in our internship program because we learned that in two fields (computer science and information systems) interns are usually paid, which is the norm. However, we will be unable to offer any more than three internships.

In collaboration with our nearby college, we have narrowed the field to six excellent candidates. These six candidates will be interviewed. This is to inform you that you are required to attend three interviewing sessions for these student candidates. Your presence is needed at these sessions to help us avoid making poor selections.

You should mark your calendars for the following three times. We are scheduling the first set of interviews for April 5 to meet in the conference room. Please examine all the candidates’ résumés, which are attached, and send me your ranking lists.

The second interviewing session is scheduled for April 8 in Office 22 (the conference room was already scheduled). On April 11 we can finish up in the conference room. All of the meetings will start at 2 p.m. In view of the fact that your projects need fresh ideas and talented new team members, I should not have to urge you to attend and be well prepared.

Nathan Weintraub
Director, Human Resources

1. Does not provide a helpful subject line.
2. Starts indirectly with an explanation instead of the main idea: scheduling interviews.
3. Fails to develop reader benefits, such as explaining why the readers should be interested.
4. Sounds negative (unable to offer; avoid making poor selections; should not have to urge you).
5. Buries a verb (made a decision instead of decided).
6. Has a long lead-in (This is to inform you that).
7. Suffers from flabby expression (in view of the fact that), other wordiness, repetition, and a demanding tone.
8. Fails to make the interview dates and rooms highly readable with a list.
9. Inserts request (send me your ranking lists) in the middle of a paragraph instead of at the end of the message where action items should go.
10. Does not include an end date and reason for returning the ranking lists.

Why do governments usually support and regulate natural monopolies?

A two or more firms are cost-prohibitive

B competition makes prices lower in a natural monopoly

C owners of natural monopolies do not know how to manage them efficiently

D itis difficult to keep up with advancing technology

What is one specific requirement of a negotiable instrument?
O A. It must involve an exchange of goods.
B. It must provide for a fixed amount of money.
O C. It must be agreed to orally.
O D. It must involve two parties who are friends.

Vector Technology is suffering from cyber-loafing, which is employee use of work internet access for personal use. Can you lead a task force in creating a new social media policy for Vector before productivity drops even further? Keep in mind that you don't want to create employee backlash! Instructor Instructions: Please review the instruction and respond to the questions for this homework assignment.

Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Choose the items that meet the qualifications to be treated as an intangible asset on the balance sheet.
a. Unsuccessful legal defense costs of trademark
b. Legal costs in securing copyright
c. Purchased patent
d. Investment in subsidiary
e. Filing fees for patent
f. Purchase of a franchise
g. Successful legal defense costs for copyright
h. Research costs for new drug
i. Sale of a franchise
j. Internal development costs for patent
k. Purchased copyright
l. Initial training costs for startup of new business

Question 10 (5 points)
Company policy for internal control should include all of the following except for
which one?
Employees will be rotated.
Monthly bank statements should be sent to and reconciled by the same
employees who authorize payments and write checks.
At time of payment, all supporting invoices or documents will be stamped "paid."
The owner (or responsible employee) signs all checks after receiving
authorization to pay from the departments concerned.

17. Andy Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Andy uses the perpetual inventory system. The journal entries that Andy will make on October 1 will include: A) Debit to Accounts Receivable for $4,000 B) Credit to Merchandise Inventory for $5,800 C) Debit to Cost of Goods Sold for $5,800 D) Credit to Merchandise Inventory for $4,000 E) Credit to Net Income for $1,800

You are Heidi Ganahl, CEO and Founder of Camp Bow Wow, and you are intending to expand the brand to new global locations. If you are expanding into a country that values humane-oriented leadership, which of the following behaviors is most in line with that perspective?
a. You implement weekly team building session to create a collaborative work environment.
b. You involve all employees in all decisions, ensuring that everyone participates in the decision making process.
c. You articulate a dear vision for changing the organization so that it will focus on consistently delivering high levels of performance.
d. You provide compassionate support when an employee is having difficulty with family issues.

Dixie Chicken is about to close one of its fast food franchises. As part of the closing, the firm will sell a refrigeration unit and its cooking units. The book value of the refrigeration unit is currently $18,203.00, while the book value of the cooking unit is $3,713.00. A buyer has offered $12,454.00 for the refrigerator and $6,116.00 for the cooking unit. The tax rate facing the firm is 35.00%. What is the cash flow from selling these assets

Trends such as more frequent shipments, lighter-weight shipments, and higher-value shipments:_________

a. help standardize rates on air and ocean shipments for incoming and outgoing freight
b. make ocean freight more effective than it has been in the past
c. increase the growth of airfreight traffic
d. have decreased the cost of containerization

Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities:

Net income $5,135
Purchase of property, plant, and equipment 1,071
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Cash received from customers 37,164
Payments to reduce long-term debt 46
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Dividends paid 277
Interest paid 90
Purchase of treasury stock (stock repurchase) 2,583

Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)

7.) Geometry: Which set of ordered pairs can be connected in order to
form a right triangle?*
A. (-1,3), (-1,-1), (2, -1)
B. (-4, 0), (0, 1), (1,2)
O C. (2, 2), (2, -2), (-2,-2), (-2, 2)
D. (0,5), (-3, 3), (3,-3)
What’s the answer

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:

Direct materials used $87,000
Direct labor used 160,000
Predetermined overhead rate (based on direct labor) 155%
Goods transferred to finished goods 432,000
Cost of goods sold 444,000
Credit sales 810,000

a. Debit Factory Overhead $248,000; credit Cash $248,000.
b. Debit Work in Process Inventory $160,000; credit Factory Payroll $160,000.
c. Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
d. Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000.
e. Debit Work in Process Inventory $160,000; credit Cash $160,000.

can anyone share important questions on Managerial Information Systems??
i need it for preparing
for my exams​

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $4.60 each and then sold for the full price of $8.90 each. What is the incremental income from selling the units as scrap and reworking and selling the units