Howard cooper, the president of finch computer services, needs your . he wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its customers. the following basic data pertain to fiscal year 2019: standard rate and variable costs service rate per hour $ 87.00 labor cost 37.00 overhead cost 7.10 selling, general, and administrative cost 3.60 expected fixed costs facility maintenance $ 520,000 selling, general, and administrative 150,000 required: prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in 2019. a marketing consultant suggests to mr. cooper that the service rate may affect the number of service hours that the firm can achieve. according to the consultant’s analysis, if finch charges customers $82 per hour, the firm can achieve 38,000 hours of services. prepare a flexible budget using the consultant’s assumption. the same consultant also suggests that if the firm raises its rate to $92 per hour, the number of service hours will decline to 27,000. prepare a flexible budget using the new assumption.

If his parents cannot alex with college, and two of his scholarships will be awarded to other students if he does not accept them immediately, which is the best option for him?

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.