Jack and Jill are the only two residents in a neighborhood, and they would like to hire a security guard. The value of a security guard is $50 per month to Jack and $150 per month to Jill. The competitive wage for a security guard is $120 per month, and irrespective of who pays the guard, the guard will protect the entire neighborhood. Furthermore, suppose Jack earns $1,000 per month and Jill earns $11,000 per month.

Required:
a. What is the most a guard can charge per month and still be assured of being hired by at least one of them?
b. Suppose the competitive wage for a security guard is $120 per month. The local government proposes a plan whereby Jack and Jill each pays 50 percent of this monthly fee, and asks them to vote on this plan. Will the plan be voted in? Would economic surplus be higher if the neighborhood had a guard?

Answer:

Jack and Jill

a. The most a guard can charge per month and still be assured of being hired by at least one of them = $120

b. The vote will be 50 - 50.  The local authority will decide since there is a 50 - 50 chance.

The economic surplus would be higher if the neighborhood had a guard by $80 ($200 - $120).

Explanation:

a) Data and Calculations:

Value of a security guard to Jack = $50 per month

Value of a security guard to Jill = $150 per month

Total value = $200 per month

Competitive wage for a security guard = $120 per month

Which era came immediately after World War II?

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $64,000; 20Y2, $128,000; 20Y3, $288,000; 20Y4, $368,000; 20Y5, $448,000; and 20Y6, $576,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 4% stock, $100 par, and 100,000 shares of common stock, $10 par.
Required:
Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years.

A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital market. Flotation costs are expected to total $1 per share. The dividends paid on the outstanding stock over the past five years are as follows: The cost of this new issue of common stock is ________.

Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients.
Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 72,500 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $652,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $671,800 and its actual total direct labor was 77,550 hours.
Required:
1. Compute the predetermined overhead rate.
2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:
Direct materials $ 43,500
Direct labor cost $ 23,400
Direct labor hours worked 300
Compute the total job cost for the Xavier Company engagement.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
Predetermined overhead rate per DLH
Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.)
Direct materials
Direct labor
Overhead applied
Total manufacturing cost

the wacc approach to valuation is not as useful as the apv approach in leveraged buyouts because: the capital structure is changing. there is no tax shield with the wacc. the value of the levered and unlevered firms are equal. the unlevered and levered cash flows are separated which cannot be used with the wacc approach. there is greater risk with a lbo.

Holtzman Clothiers's stock currently sells for $19.00 a share. It just paid a dividend of $4.00 a share (i.e., D0 = $4.00). The dividend is expected to grow at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

On January 8, Quastrar, Inc. sent Hylian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian: A. was not formed because the revocation was effective before the acceptance was sent. B. was not formed because the revocation was effective before the acceptance was received. C. was formed on January 18. D. was formed on January 20

1. The petty cash fund of the Brooks Agency is established at $280. At the end of the current period, the fund contained $198 and had the following receipts: entertainment, $50; postage, $24; and printing, $8. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.

Normally you will see US Labor Productivity Increasing at an annual rate of around 6%. In reading the book you should see that it must continue to increase for our country to continue to have the standard of living that we do. What seemed odd to me was that in the 3rd Quarter of 2009, while our country is in the midst of a very deep recession, this number went to 14.8%. In the 4th Quarter it dropped to 6.4% and in the 1st Quarter of this year it was at 2.5%. Why the Big Spike in the 3rd Quarter of 2009

The following information is available for a company's utility cost for operating its machines over the last four months. Month Machine hours Utility cost January 940 $ 5,490 February 1,840 $ 6,980 March 2,480 $ 8,100 April 640 $ 3,900 Using the high-low method, the estimated variable cost per machine hour for utilities is:

A wine bar entrepreneur sells cases of her private-label wine for $335 per case.For an annual fee of $300, customers may also choose to enroll in a WineAppreciation Club, which o????ers private tastings and entitles members to buy casesof wine for $200. What is the minimum number of cases a club member need topurchase for the membership to be economically advantageous?

Suppose that Ava withdraws $300 from her savings account at Second Bank. The reserve requirement facing Second Bank is 10%. Assume the bank does not wish to hold any excess reserves of new deposits. Use this information to complete the balance sheet below to show how Second Bank's assets and liabilities change when Ava withdraws the $300 from the bank. Instructions:
Write your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
A Simple Bank Balance Sheet
Assets Liabilities
Change in Reserves: Change in Deposits:
Change in Loans:

Suppose that Toyota operates two large plants: one in Japan and one in the United States. In the Japanese plant it takes Toyota 4 hours to produce a sedan and 3 hours to produce a truck. In the plant in the United States it take Toyota 6 hours to produce a sedan and 4 hours to produce a truck. This implies that ___________ has the absolute advantage in producing sedans and _____________ has the absolute advantage in producing trucks. Japan ; Japan Japan ; United States United States ; Japan United States ; United States no one ; Japan no one ; United States Japan ; no one United States ; no one no one ; no one

1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
a) true
b) false
2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
a) true
b) false
3. When a corporation is formed, organization costs are recorded as an asset.
a) true
b) false
4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
a) true
b) false
5. The number of issued shares is always greater than or equal to the number of authorized shares.
a) true
b) false
6. A journal entry is required for the authorization of capital stock.
a) true
b) false
7. Publicly held corporations usually issue stock directly to investors.
a) true
b) false
8. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
a) true
b) false
9. The market price of common stock is usually the same as its par value.
a) true
b) false
10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
a) true
b) false

Consumption expenditures $ 4,150 Federal government purchases of goods and services 850 State and local government’s purchases 331 Investment 751 Proprietors income 150 Compensation of employees 4,080 Corporate profits 134 Taxes on corporate profits 23 Rental income 31 Capital consumption allowance 295 Indirect business taxes 130 Net interest 147 Exports 300 Imports 320 Undistributed corporate profits 111 Transfer payments 66 Personal taxes 45 Dividends 0 Income Earned from the Rest of the World 252 Income Earned by the Rest of the World 1,347 Social insurance taxes 222 Statistical discrepancy 5 Refer to Exhibit 7-1. What is the value of disposable income?

Matching Items Reported to Cash Flow Statement Categories (Indirect Method)
Reebok International Ltd. is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using theindirect method are listed here.
Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.)
_____ 1. Dividends paid
_____ 2. Repayments of long-term debt
_____ 3. Depreciation and amortization
_____ 4. Proceeds from issuance of common stock to employees
_____ 5. [Change in] Accounts payable and accrued expenses
_____ 6. Cash collections from customers
_____ 7. Net repayments of notes payable to banks
_____ 8. Net income
_____ 9. Payments to acquire property and equipment
_____ 10. [Change in] Inventory

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $287,000 after deducting Robert's $86,100 salary. In addition to his compensation, ABC pays Robert dividends of $200,900.
a. What is Robert's qualified business income?
b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050?

The following selected account balances are taken from the records of Cooper Corporation for the past two years.
December 31
2018 2017
Equipment $750 $400
Accumulated depreciation 160 225
Land 92 50
Bonds payable 30 50
Common stock 120 100
Additional paid in capital 400 320
Retained earnings 825 675
Other information available for 2018:
Net income for the year was $200.
Depreciation expense on plant and equipment was $70.
Equipment with an original cost of $200 and Accum. Dep. of $135 was sold at a gain of $5.
No land was sold during the year.
Both new equipment and land were purchased during the year.
Bonds payable were retired
Common stock was issued for cash.
Cash dividends were declared and paid.
1. How much cash did Cooper Corp. receive from the sale of equipment?
a. 60
b. 135
c. 195
d. 70
e. None of the above
2. What is Cooper Corp's net increase (decrease) in cash from investing activities?
a. 18
b. (522)
c. (397)
d. (480)
e. None of the above
3. What is Cooper Corp's net increase (decrease) in cash from financing activities?
a. 50
b. (80)
c. 30
d. (50)
e. None of the above

Kari is a limited partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000, and she received a cash distribution of $30,000. Kari's tax basis in her partnership interest at the beginning of the year was $50,000. Her marginal tax rate is 22 percent. Kari qualifies for the QBI deduction, without regard to the wage or taxable income limitations.
a. Calculate the tax cost of Kari's partnership earnings this year Tax cost
b. Compute Kari's after-tax cash flow from her partnership activity this year After-tax cash flow
c. Compute Kari's tax basis in her partnership interest at the ending of the year. Assume no change in her share of partnership during the year.

present value of bonds payable; premium moss co. issued $740,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. determine the present value of the bonds payable, using the present value tables in exhibit 5 and exhibit 7. round to the nearest dollar. $fill in the blank 1

Lucci Inc. is a retailing firm specializing in high-end merchandise. Each of Lucci's stores uses the retail inventory method by applying the average-LCM alternative. The information below pertains to one department within its Scottsdale, Arizona store. You will use this information to determine ending inventory and cost of goods sold for financial reporting purposes. Assume no inventory shrinkage, and a periodic inventory system.
Beginning inventory of merchandise
Cost, $40,000
Retail, $360,000
Purchases during the period
Cost, $1,000,000
Retail, $10,000,000
Transportation in, $50,000
Transportation out, $32,000
Purchase returns
Cost, $20,000
Retail, $196,000
Net additional markups, $800,000
Net markdowns, $500,000
Sales, $9,800,000
Using the information above, compute the amounts to be reported in the financial statements for ending inventory and cost of goods sold for the department. The spreadsheet below has been started for you. Line items have been entered in column A. In columns B and C, enter appropriate amounts as well as intermediate subtotals directly below the amounts leading to the subtotal. Include the cost to retail calculation as well as your two amounts for financial statement reporting. Round the cost to retail ratio to four decimal places and include the "0" preceding the decimal point. Enter 0 where no other entry is appropriate.
A1 lock copy cut paste
A B C
1 Line Item Description Cost Retail
2 Beginning inventory $40,000
3 Purchases
4 Transportation in
5 Purchases returns
6 Net purchases
7 Net additional markups
8 Cost to retail ratio components
9 Net markdowns
10 Sales
11 Ending inventory, retail
12 Set up Calculation
13 Cost to retail ratio
14 Ending inventory, cost
15 Cost of goods sold

Imagine that in the current year the economy is in long-run equilibrium. Then the federal government reduces its purchases of goods by 50%. In the long run, what happens to the expected price level and what impact does this have on wage bargaining

Total quality management (TQM) is defined as a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction. TQM is led by top management and supported throughout the organization. This activity is important because TQM requires hard work, and managers should understand its core principles in order to properly instill and support TQM in their organizations.
1. Employees, suppliers, and customers are all entrusted with decision-making power.
(Click to select) People orientation Improvement orientation
2. The way to success in business is through continuous, small enhancements to products.
(Click to select) People orientation Improvement orientation
3. Is driven by strong support at the highest levels of the organization.
(Click to select) People orientation Improvement orientation
4. The focus is on creating the most value possible for customers.
(Click to select) People orientation Improvement orientation
5. Assumes that it is better to expend more resources getting something right the first time than to have to engage in costly repairs and reworking after the fact.
(Click to select) People orientation Improvement orientation
6. Executives and researchers at the corporate level frequently interact with front-line salespeople to garner information on customer and product issues.
(Click to select) People orientation Improvement orientation

An all equity capitalized firm (i.e., no debt in the capital structure) is expected to produce a cash flow in the amount of $900,000 in its first year of operation. Cash flow is expected to grow at 2% annually for the foreseeable future each year thereafter. If the firm's investors require a 10% return, what is the estimated Market Value of the Firm

The distributable net income (DNI) of a fiduciary taxpayer: a.Marks the maximum amount of gross income that income beneficiaries must report when receiving distributions. b.Specifies the character of the distributions in the hands of the year's income beneficiaries. c.Constitutes the maximum amount for the fiduciary's distribution deduction. d.All of these choices are correct.

On December 31, 2018, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long- term investments.

Common Stock Shares Cost
C Co. 1,050 $50,400
D Co. 5,090 38,175
E Co. 1,199 25,179

On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2019, the following transactions occurred.

July 1 Received $2 per share semiannual cash dividend on D Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on C Co. common stock.
Sept. 1 Sold 1,020 shares of D Co. common stock for cash at $9 per share.
Oct. 1 Sold 274 shares of C Co. common stock for cash at $54 per share.
Nov. 1 Received $1 per share cash dividend on E Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on C Co. common stock.
31 Received $2.30 per share semiannual cash dividend on D Co. common stock.

At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7.30, and E Co. $25. These investments should be classified as long-term.

Requried:
Journalize the 2019 transactions

The Clean Water Act (CWA) of 1972 did all of the following except _____.


take over the EPA's authority to impose pollution control programs

not permit pollutants to be discharged from pipes or man-made ditches into navigable waters

regulate pollutants discharged into US waters

set water-quality standards

Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sunland has 200 kilos of plastic in beginning inventory and wants to have 300 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

Rippelmeyer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During June, the kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Fixed element per month Variable element per tenant day
Revenue _____________ $34,80
Wages and salaries $3900 $6
Expendables 400 9.7
Facility expenses 9400 4.5
Administrative expenses 7400 0.20
Total expenses 21,100 20.40

Actual results for May:
Revenue $73540
Wages and salaries 16170
Expendables 19735
Facility expenses 18125
Administrative expenses 7600

The net operating income in the planning budget for May would be closest to:
a. $9,140
b. $11,626
c. $12,200
d. $8,420

The net operating income in the flexible budget for May would be closest to:
a. $9,140
b. $8,420
c. $11,626
d. $12,200

Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 11% as long as it finances at its target capital structure, which calls for 45% debt and 55% common equity. Its last dividend (D0) was $1.85, its expected constant growth rate is 3%, and its common stock sells for $22. EEC's tax rate is 25%. Two projects are available: Project A has a rate of return of 13%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's existing assets. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the WACC? Do not round intermediate calculations. Round your answer to two decimal places. % Which projects should Empire accept? -Select-