Control inc. has no debt and a total market value of $100,000. ebit are projected to be 6,000 if economic conditions are normal. if there is an expansion in the economy, then ebit will be 30% higher. if there is a recession, then ebit will be 60% lower. control inc. is considering a $40,000 debt issue with a 5% interest rate. the proceeds will be used to repurchase shares of stock. currently there are 2500 shares outstanding. ignore taxes.

1. calculate earning per share for the case of strong expansion period before any debt is issued:

3.12

3.95

4.82

5.18

6.02

The amberssen specialty company is a chain of twelve retail stores that sell a variety of imported gift items, gourmet chocolates, cheeses, and wines in the toronto area. amberssen has an is staff of three people who have created a simple but effective information system of networked point-of-sale registers at the stores and a centralized accounting system at the company head- quarters. harry hilman, the head of amberssens is group, has just received the following memo from bill amberssen, sales director (and son of amberssen’s founder). harry—it’s time amberssen specialty launched itself on the internet. many of our competitors are already there, selling to customers without the expense of a retail storefront, and we should be there too. i project that we could double or triple our annual revenues by selling our products on the internet. i’d like to have this ready by - giving, in time for the prime holiday gift-shopping season. bill after pondering this memo for several days, harry scheduled a meeting with bill so that he could clarify bill’s vision of this venture. using the standard con- tent of a system request as your guide, prepare a list of questions that harry needs to have answered about this project.

The farmer's market just paid an annual dividend of $5 on its stock. the growth rate in dividends is expected to be a constant 5 percent per year indefinitely. investors require a 13 percent return on the stock for the first 3 years, a 9 percent return for the next 3 years, a 7 percent return thereafter. what is the current price per share? select one: a. $212.40 b. $220.54 c. $223.09 d. $226.84 e. $227.50 previous pagenext page

Both a demand curve and a demand schedule show how a. prices affect consumer demand. b. consumer demand affects income. c. prices affect complementary goods. d. consumer demand affects substitute goods.