Fresh out of harvard business school, john thompson, the new cfo of joe's southern cornbread company, wants to shake things up at the sleepy little food company headquartered in birmingham, alabama. the firm is currently an allminusequity firm because "that's the way we've always done it." under pressure from a new group of major stockholders, however, walker is considering acquiring some debt (leverage) in an effort to boost earnings per share. the company currently has 8000 shares of common stock outstanding, but he is thinking about borrowing $16,000 at 8% per year and buying back 2000 of those shares. john thompson is currently living in a world with no taxes. refer to the scenario above. if southern cornbread's ebit is $6,000, compare eps before and after the new debt.

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?

Swathmore clothing corporation grants its customers 30 days' credit. the company uses the allowance method for its uncollectible accounts receivable. during the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. at the fiscal year-end of december 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. at the end of 2012, accounts receivable were dollar 586.000 and the allowance account had a credit balance of dollar 50,000. accounts receivable activity for 2013 was as follows: the company's controller prepared the following aging summary of year-end accounts receivable: prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (if no entry is required for a particular event, select "no journal entry required" in the first account field.) prepare the necessary year-end adjusting entry for bad debt expense. (if no entry is required for an event, select "no journal entry required" in the first account field.) what is total bad debt expense for 2013? calculate the amount of accounts receivable that would appear in the 2013 balance sheet?

Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivityb. attitude of governmental unitsc. location of marketsd. zoning regulationse. exchange rates