Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt−equity ratio of .60. It’s considering building a new $65 million manufacturing facility. This new plant is expected to generate aftertax cash flows of$9.4 million in perpetuity. The company raises all equity from outside financing. There are three financing options:

1. A new issue of common stock: The flotation costs of the new common stock would be 8% of the amount raised. The required return on the company’s new equity is 14%.
2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 4% of the proceeds. If the company issues these new bonds at an annual coupon rate of 8%, they will sell at par.
3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .15. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

What is the NPV of the new plant? Consider that PC has a 35% tax rate.

The molecules in the rods and cones in the eye are turned to absorb photons of particular energies. The retinal molecule, like many molecules, is a long chain. Electrons can freely move along one stretch of the chain but are reflected at the ends, thus behaving like a particle in a one-dimensional box. The absorption of a photon lifts an electron from the ground state into the first excited state. Do the molecules in a red cone (which are turned to absorb red light) or the molecules in a blue cone (tuned to absorb blue light) have a longer "box"?

During a thunderstorm, some cows gather under a large tree. One cow stands facing directly toward the tree. Another cow stands at about the same distance from the tree, but it faces sideways (tangent to a circle centered on the tree). Which cow do you think is more likely to be killed if lightning strikes the tree? [Hint: Think about the potential difference between the cows' front and hind legs in the two positions.]

A spark will jump between two conductors separated by air when the electric field between the two conductors is approximately $3.0 \times 10^4 \mathrm{~V} / \mathrm{cm}$. This is known as the dielectric breakdown, and the exact value can vary depending on the conditions of the air. Determine the potential difference between two conductors in the following situations. (a) Two students send a $6 \mathrm{~mm}$ spark between their fingertips. (b) A Van de Graaff generator and a spherical grounding wand receive a $12 \mathrm{~cm}$ spark. (c) A thundercloud and the top of a mountain receive a $950 \mathrm{~m}$ lightning bolt.

(a) When an object, such as a rod, is heated, what factors determine how much its length increases? (b) Suppose two rods are made from materials that have different coefficients of linear expansion, but their lengths change by the same amount when their temperatures change by the same amount. Are their initial lengths the same or different? Explain. One rod is made from lead and another from quartz. They are heated and experience the same change in temperature. If the initial length of the lead rod is 0.10 m, what is the initial length of the quartz rod?

Circle the BEST answer.
Which keeps the heels and ankles off the bed?
a Bed cradles
b Pillows
c Air flotation bed
d Trochanter rolls

With your team, define the specific question to be answered. Identify all of the factors you will explore to answer the question and the characteristics a complete answer should have.

Suppose Team C won 32 out of 50 games. What percent of the games they played did they win? How does this compare to the percents for Teams A and B?

What ability is key to reaching higher levels of moral thinking?

Zeta Products Company reported the following stockholders’ equity on its balance sheet:

$$\begin{matrix} \text{Stockholders’ Equity (Dollars and shares in millions)} & \text{December 31,}\\ & \text{2013} & \text{2012}\\ \text{Preferred stock—\$1.00 par value; authorized 20 shares; Convertible Preferred Stock; issued and outstanding: }\\ \text{2013 and 2012—4 and 8 shares, respectively} & \text{\$ 4} & \text{\$ 8}\\ \text{Common stock—\$1 per share par value; authorized 1,500 shares; issued: 2013 and 2012—200 and 100 shares, respectively } & \text{200} & \text{100}\\ \text{Additional paid-in capital } & \text{1,400 } & \text{650}\\ \text{Retained earnings} & \text{6,280} & \text{5,075}\\ \text{Treasury stock, common—at cost 2013—20 shares; 2012—10 shares } & \text{(400) } & \text{(160) }\\ \text{Total stockholders’ equity} & \text{7,484 } & \text{5,673 }\\ \text{Total liabilities and stockholders’ equity} & \text{\$48,484} & \text{\$42,673}\\ \end{matrix}$$

What caused Zeta’s preferred stock to decrease during 2013? Cite all possible causes. What caused Zeta’s common stock to increase during 2013? Identify all possible causes. How many shares of Zeta’s common stock were outstanding at December 31, 2013? Zeta’s net income during 2013 was $1,375 million. How much were Zeta’s dividends during the year? During 2013, Zeta sold no treasury stock. What average price per share did Zeta pay for the treasury stock that the company purchased during the year?

MJO Inc. has the following stockholders’ equity section of the balance sheet:

$$\begin{array}{c} \textbf{MJO Inc.}\\ \textbf{Balance Sheet (Partial)}\\ \begin{array}{lrr} \text{Stockholders’ equity:}\\ \quad\text{Preferred stock, 100,000 shares authorized; 30,000}\\ \quad\quad\text{issued and outstanding}& &\$~~~~300,000\\ \quad\text{Common stock, 1,000,000 shares authorized;}\\ \quad\quad\text{600,000 issued; 550,000 outstanding}& &1,200,000\\ \quad\text{Additional paid-in capital:}\\ \quad\quad\text{Preferred stock}& \$~~~~~~90,000\\ \quad\quad\text{Common stock}& \underline{~~4,800,000}& \underline{~~4,890,000}\\ \quad\quad\quad\text{Total capital stock}& &\$6,390,000\\ \quad\text{Retained earnings}& &450,000\\ \quad\quad\text{Accumulated other comprehensive income} &&22,000\\ \quad\quad\text{Less: Treasury stock, at cost} &&\underline{~~~(800,000)}\\ \quad\quad\quad\text{Total stockholders’ equity} &&\$6,062,000\\ \end{array} \end{array}$$

On the balance sheet date, MJO’s stock was selling for $25 per share.

Required:

Assuming MJO’s dividend yield is 1% and its dividend payout is 20%, what is MJO’s net income?

Complete the sentence in a way that shows you understand the meaning of the italicized vocabulary word. The linebackers on the football team looked like $\mathit{ogres}$ compared to...

Access the fiscal 2017 I 0-K for Nike at the SEC's EDGAR database or financial reports. Using its consolidated statement of stockholders' equity, prepare a table similar to the exhibit showing the articulation of its retained (reinvested) earnings for the year ended May 31.2017. Was Nike more or less profitable in 2018 compared to 2017?

Kohler Corporation reports the following components of stockholders' equity at December 31, 2018.

$$\begin{array}{lrr} \text{Common stock-\$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding}&\text{\$\hspace{1pt}400,000}\\ \text{Paid-in capital in excess of par value, common stock}&\text{60,000}\\ \text{Retained earnings}&\underline{\text{\hspace{6pt}270,000}}\\ \text{Total stockholders' equity}&\underline{\underline{\$\text{\hspace{1pt}730,000}}}\\ \end{array}$$

During 2019, the following transactions affected its stockholders' equity accounts.

Jan.  2 Purchased 4,000 shares of its own stock at $20 cash per share.
Jan.  5 Directors declared a$2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5. 
July  6 Sold 1,500 of its treasury shares at $24 cash per share. 
Aug. 22 Sold 2,500 of its treasury shares at$17 cash per share. 
Sep.  5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. 
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the$388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required

1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the year ended December 31, 2019.
3. Prepare the stockholders' equity section of the company's balance sheet as or December 31, 2019.