Joseph reads a lot about people who are success oriented. He loves to learn about courage, risk taking, and as he describes it, "the road less traveled." His local bookstore has a large business section where he has found biographies of entrepreneurs and maverick corporate leaders. He also finds fascinating some of the books he has seen on financial planning and ways to accumulate wealth. One interesting savings plan he read about challenges the reader to put aside one full paycheck at the end of the year as a "holiday present to yourself." Joseph had never thought about saving in that way, and wondered if it would really accumulate much savings.

Joseph was amazed at how much he could save in this manner and decided to design a detailed savings plan based on projected yearly increases. He realized that he could not start depositing $\$ 1,500$ now, but that he would be able to deposit more than that in the future. If he were able to deposit $\$ 1,000$ at the end of each year for the next 5 years at $8 \%$ compounded annually, $\$ 1,500$ at the end of years $6-10$ at $8 \%$ compounded annually, and $\$ 2,000$ at the end of years $11-35$ at $5 \%$ compounded annually, how much would he accumulate at the end of $35$ years? Assume that any balances from earlier depositing periods would continue to earn the same rate of annual interest. Use the tables for future value of annuities and compound amount.

Medical Research Corporation is expanding its research and production capacity to introduce a new line of products. Current plans call for the expenditure of $\$ 100$ million on four projects of equal size ( $\$ 25$ million each), but different returns. Project $\mathrm{A}$ is in blood clotting proteins and has an expected return of 18 percent. Project B relates to a hepatitis vaccine and carries a potential return of 14 percent. Project $\mathrm{C}$, dealing with a cardiovascular compound, is expected to earn $11.8$ percent, and Project D, an investment in orthopedic implants, is expected to show a $10.9$ percent return. The firm has $\$ 15$ million in retained earnings. After a capital structure with $\$ 15$ million in retained earnings is reached (in which retained earnings represent 60 percent of the financing), all additional equity financing must come in the form of new common stock. Common stock is selling for $\$ 25$ per share and underwriting costs are estimated at $\$ 3$ if new shares are issued. Dividends for the next year will be $\$ .90$ per share $\left(D_1\right)$, and earnings and dividends have grown consistently at 11 percent per year. The yield on comparative bonds has been hovering at 11 percent. The investment banker feels that the first $\$ 20$ million of bonds could be sold to yield 11 percent while additional debt might require a 2 percent premium and be sold to yield 13 percent. The corporate tax rate is 30 percent. Debt represents 40 percent of the capital structure. At what size capital structure will there be a change in the cost of debt?

Poom Manufacturing used cash to acquire 75 percent of the voting stock of Satellite Industries on January 1, 20X3, at underlying book value. At that date, the fair value of the non-controlling interest was equal to 25 percent of Satellite's book value. Poom accounts for its investment in Satellite using the equity method.

Poom had no inventory on hand on January 1, 20X5. During 20X5, Poom purchased $300,000 of goods from Satellite and had$100,000 remaining on hand at the end of 20X5. Satellite normally prices its items so that their cost is 70 percent of sale price. On January 1, 20X5, Satellite held inventory that it had purchased from Poom for $50,000. Poom's cost of producing the items was$30,000. Satellite sold all of the merchandise in 20X5 and made no inventory purchases from Poom during 20X5.

On July 15,20X5, Satellite sold land that it had purchased for $240,000 to Poom for$360,000. The companies file separate tax returns and have a 40 percent income tax rate. Poom does not record tax expense on its portion of Satellite's undistributed earnings. Tax expense recorded by Poom in 20X5 with regard to its investment in Satellite is based on dividends received from Satellite in 20X5. In computing taxable income, 80 percent of inter-corporate dividend payments are exempt from tax. Satellite reported net income of $190,000 for 20X5 and net assets of$900,000 on December 31, 20X5. Poom's reported income before investment income from Satellite and income tax expense of $700,000 for 20X5. Satellite and Poom paid dividends of$150,000 and $400,000, respectively, in 20X5.

Required

Compute consolidated net income and income to the controlling interest for 20X5.

On a sheet of paper, use each of these key terms and academic vocabulary terms in a sentence.

Just Carpets has eight different quality grades of carpeting. Three types are being selected for a corporate test on durability. a. How many different samples of size 3 can be taken, without replacement? b. How many different samples of size 5 can be taken without replacement?

Refer to the Business and Society (Mar. 2011) study on the sustainability behaviors of CPA corporations. Recall that corporate sustainability refers to business practices designed around social and environmental considerations. The level of support senior managers have for corporate sustainability was measured quantitatively on a scale ranging from 0 to 160 points, where higher point values indicate a higher level of support for sustainability. The study provided the following information on the distribution of levels of support for sustainability: $\mu=68, \sigma=27$. Now consider a random sample of 30 senior managers and let $\bar{x}$ represent the sample mean level of support. Give the value of $\sigma_{\bar{x}}$, the standard deviation of the sampling distribution of $\bar{x}$, and interpret the result.

Medical Research Corporation is expanding its research and production capacity to introduce a new line of products. Current plans call for the expenditure of $\$ 100$ million on four projects of equal size ( $\$ 25$ million each), but different returns. Project $\mathrm{A}$ is in blood clotting proteins and has an expected return of 18 percent. Project B relates to a hepatitis vaccine and carries a potential return of 14 percent. Project $\mathrm{C}$, dealing with a cardiovascular compound, is expected to earn $11.8$ percent, and Project D, an investment in orthopedic implants, is expected to show a $10.9$ percent return. The firm has $\$ 15$ million in retained earnings. After a capital structure with $\$ 15$ million in retained earnings is reached (in which retained earnings represent 60 percent of the financing), all additional equity financing must come in the form of new common stock. Common stock is selling for $\$ 25$ per share and underwriting costs are estimated at $\$ 3$ if new shares are issued. Dividends for the next year will be $\$ .90$ per share $\left(D_1\right)$, and earnings and dividends have grown consistently at 11 percent per year. The yield on comparative bonds has been hovering at 11 percent. The investment banker feels that the first $\$ 20$ million of bonds could be sold to yield 11 percent while additional debt might require a 2 percent premium and be sold to yield 13 percent. The corporate tax rate is 30 percent. Debt represents 40 percent of the capital structure. At what size capital structure will the firm run out of retained earnings?

Explain why you agree or disagree with the following statements:
(a) everyone has the right to have as many children as they want;
(b) all people have a right to use as many resources as they want;
(c) individuals should have the right to do whatever they want with the land they own, regardless of whether such actions harm the environment, their neighbors, or the local community;
(d) other species exist to be used by humans;
(e) all forms of life have a right to exist:
(f) we have ethical obligations to maintain a livable world for future generations of humans and other species. Are your answers consistent with the beliefs that make up your environmental worldview?

Edna Millay Inc. is a manufacturer of electronic components and accessories with total assets of $20,000,000. Selected financial ratios for Millay and the industry averages for firms of similar size are presented below.

Millay is being reviewed by several entities whose interests vary, and the company's financial ratios are a part of the data being considered. Each of the parties listed below must recommend an action based on its evaluation of Millay's financial position.

Archibald MacLeish Bank. The bank is processing Millay's application for a new 5-year term note. Archibald MacLeish has been Millay's banker for several years but must reevaluate the company's financial position for each major transaction.

Robert Lowell Company. Lowell is a new supplier to Millay and must decide on the appropriate credit terms to extend to the company.

Robert Penn Warren. A brokerage firm specializing in the stock of electronics firms that are sold over-the-counter, Robert Penn Warren must decide if it will include Millay in a new fund being established for sale to Robert Penn Warren's clients.

Working Capital Management Committee. This is a committee of Millay's management personnel chaired by the chief operating officer. The committee is charged with the responsibility of periodically reviewing the company's working capital position, comparing actual data against budgets, and recommending changes in strategy as needed.

Instructions

a. Describe the analytical use of each of the six ratios presented above.

b. For each of the four entities, identify two financial ratios, from the ratios presented above, that would be most valuable as a basis for its decision regarding Millay.

c. Discuss what the financial ratios presented in the question reveal about Millay. Support your answer by citing specific ratio levels and trends as well as the interrelationships between these ratios.

What is the difference between gender and gender roles?

self-satisfaction

Lipid bilayers are self-sealing. If a hole is introduced, the hole is filled in immediately. What is the energetic basis of this self-sealing?

Brian has narrowed his choice of bond purchases to two: Me/Mac is a $70,000, 7 percent corporate bond selling for 102; BrgPort is a$10,000, 5 percent municipal bond selling for 95. Compute the current yield of each bond and advise him about which bond to choose.

Corporate Split [LO3] In $2016$, activist investor Elliott Management was pressuring Marathon Petroleum to split up the company. Elliott felt that Marathon should sell off its Speedway gas and retail stores. Why might investors prefer that a company split into multiple companies? Is there a possibility of reverse synergy?