Brian Klaas Consulting, Inc. has capital structure based on 50 percent debt, 15 percent preferred stock, 35 percent common stock. The pre-tax cost of debt 9.4 percent, the cost of preferred is 10.2 percent , and the cost of common stock 17.2 percent. The tax rate is 20 percent. Brian is considering adding a payroll division that is equally risky as the oveeerall company. The cost of forming the new division is $327,000. The expected anual cash flows from the new division are $102,000, $221,000, and $265,000. What is the expected net present value of the investment in the new division.
a. $43,222.
b. $56,878.
c. $78,351.
d. $135,158.
e. $188,152.

Ronald works for a small biotech firm. when the firm presents the results of its clinical trials to the fda, ronald realizes that the results are not accurate. he reports this to the fda. ronald is a(n)

Spirula trading inc sublets a part of its offices building to jade inc. for a period of ten years . where will the company disclose this information?

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.