The following information was taken from Sigmund Company's balance sheet:

$$\begin{array}{lr}\text { Fixed assets (net) } & \$ 1,050,000 \\ \text { Long-term liabilities } & 750,000 \\ \text { Total liabilities } & 850,000 \\ \text { Total stockholders' equity } & 500,000\end{array}$$

Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. Round to one decimal place.

The Graber Corporation’s common stock has a beta of 1.15. If the risk-free rate is 3.5% and the expected return on the market is 11%, determine the company’s cost of equity capital.

On January 1, 2017, Vahsholtz Corporation purchased 5,000 shares of treasury stock. Other information regarding Vahsholtz Corporation is provided as follows.

$$\begin{array}{lrr} &\textbf{\underline{~~2016~~}}&\textbf{\underline{~~2017~~}}\\ \text{Net income}&\$100,000&\$110,000\\ \text{Dividends on preferred stock}&\$30,000&\$30,000\\ \text{Dividends on common stock}&\$20,000&\$25,000\\ \text{Weighted-average number of common shares outstanding}&50,000&45,000\\ \text{Common stockholders' equity beginning of the year}&\$600,000&\$750,000\\ \text{Common stockholders' equity end of the year}&\$750,000&\$830,000\\ \end{array}$$

Compute (a) return on common stockholders’ equity for each year.

Best Buy Co., Inc., reported the following amounts in its February 3, 2018, and January 28, 2017, financial statements.

Compute Best Buy's debt-to-equity ratio as of February 3, 2018.

The Nolan Corporation finds it is necessary to determine its marginal cost of capital. Nolan's current capital structure calls for 50 percent debt, 30 percent preferred stock, and 20 percent common equity. Initially, common equity will be in the form of retained earnings $\left(K_e\right)$ and then new common stock $\left(K_n\right)$. The costs of the various sources of financing are as follows: debt, $9.6$ percent; preferred stock, 9 percent; retained earnings, 10 percent; and new common stock, $11.2$ percent. What is the initial weighted average cost of capital? (Include debt, preferred stock, and common equity in the form of retained earnings, $K_e$.)

a. Show that the logistic function $f(x)=\frac{N}{1+A b^{-x}}$ can be written in the form $f(x)=\frac{N b^{x}}{A+b^{x}}$. b. Use the result of part (a) and a suitable substitution to show that $\int \frac{N}{1+A b^{-x}} d x=\frac{N \ln \left(A+b^{x}\right)}{\ln b}+C$. The rate of graduation of private high school students in the United States for the period 1994-2008 was approximately $r(t)=220+\frac{110}{1+3.8(1.27)^{-t}}$ thousand students per year $(0 \leq t \leq 14)$ t years since 1994. Use the result of part (b) to estimate the total number of private high school graduates over the period 2000-2008.

Company A and Company B both start 2012 with $1 million of shareholders’ equity and 100,000 shares of common stock outstanding. During 2012, both companies earn net income of$100,000, a return of 10% on common shareholders’ equity at the beginning of 2012. Company A declares and pays $100,000 of dividends to common shareholders at the end of 2012, whereas Company B retains all its earnings and declares no dividends. During 2013, both companies earn net income equal to 10% of shareholders’ equity at the beginning of 2013.

b. Compute the rate of growth in earning per share for Company A and Company B, comparing earnings per share in 2013 with earnings per share in 2012

The following information was taken from Charu Company's balance sheet:

$$\begin{array}{lr}\text { Fixed assets (net) } & \$ 860,000 \\ \text { Long-term liabilities } & 200,000 \\ \text { Total liabilities } & 600,000 \\ \text { Total stockholders' equity } & 250,000\end{array}$$

Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. Round to one decimal place.

Patton Paints Corporation has a target capital structure of $40 \%$ debt and $60 \%$ common equity, with no preferred stock. Its before-tax cost of debt is $12 \%$, and its marginal tax rate is $40 \%$. The current stock price is $\mathrm{P}_0=\$ 22.50$. The last dividend was $\mathrm{D}_0=\$ 2.00$, and it is expected to grow at a $7 \%$ constant rate. What is its cost of common equity and its WACC?

The following information was taken from Charu Company’s balance sheet:

$$\begin{array}{llr} \text{Fixed assets (net)}&\text{\$2,000,000}\\ \text{Long-term liabilities}&\text{800,000}\\ \text{Total liabilities}&\text{1,000,000}\\ \text{Total stockholders’ equity}&\text{625,000}\\ \end{array}$$

Determine the company’s (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders’ equity.

You’ve collected the following information about Molino, Inc.:

Sales $= \$215,000$
Net income $= \$17,300$
Dividends $= \$9,400$
Total debt $= \$77,000$
Total equity $= \$59,000$

What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? What growth rate could be supported with no outside financing at all?

Two items are eliminated from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2017, Greene’s Goods and Solar Enterprises.

Instructions
Determine the missing amounts.

At the moment, Charter Enterprises is entirely funded by equity and has assets worth $1 million. It's thinking about altering its capital structure. Calculate the debt and equity balances that would exist if the company switched to the following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%. (Note: The total number of assets would remain the same.) Does the debt ratio have a maximum value?

Determine the financial statement on which the item below appears. Use I for income statement. E for statement of owner's equity, and B for balance sheet.
 Owner Withdrawals