On January 1, 20X1, Maroon Company paid $710,000 to acquire all of Gold Company's common stock. The $166,000 excess paid above Gold's book value was attributed to a building with a 20-year life whose book value was $103,000 below its market value and to unrecorded in process R & D whose market value was $63,000 with a 6-year life. As of December 31, 20X3, Gold reported its year-end values as follows: Revenues $200,000 Expenses $160,000 Dividends declared $ 10,000 Part 1 For the year ended 20X3: A. Determine the year-end value of Maroon's Equity Income account. B. Determine the year-end consolidated value of in process R&D. C. Determine the 20x3 consolidation adjustment (entry A) for the building. Part 2 In preparation for the consolidated financial statements, prepare worksheet entries: D A E. I F. E G. P

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

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