Mastertech is a new software company that develops and markets productivity software for municipal government applications. net sales are uniformly distributed between $600,000 and $1,200,000. cost of sales is normally distributed with a mean of $540,000 and a standard deviation of $20,000. selling expenses has a fixed component of that is uniformly distributed between $75,000 and $110,000. administrative expenses are normal with a mean of $50,000 and standard deviation of $3,500. variable expenses are estimated to be 7% of net sales and interest expenses are $10,000. the company is taxed at a 50% rate and the company is interested in a risk profile of net income. net income can be found using the following set of equations: gross profit = net sales – cost of sales net operating profit = gross profit – administrative expenses – selling expenses net income before taxes = net operating profit – interest expenses net income = net income before taxes – taxes which of the inputs is uncertain and what parameters are associated with those uncertain inputs?

Sam robinson borrowed $21,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. sam’s friend would like to be reimbursed for the time value of money at a 9% annual rate. what is the annual payment sam must make to pay back his friend?

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.