You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $33.50 million in assets with $30.75 million in debt and $2.75 million in equity. LotsofEquity, Inc. finances its $33.50 million in assets with $2.75 million in debt and $30.75 million in equity.

1.Calculate the debt ratio. (Round your answers to 2 decimal places.)

Debt ratio Lots of Debt %

Lots of Equity %

2.Calculate the equity multiplier. (Round your answers to 2 decimal places.)

Equity multiplier Lots of Debt times

Lots of Equity times

3.Calculate the debt-to-equity. (Round your answers to 2 decimal places.)

Debt-to-equity Lots of Debt times

Lots of Equity times

The distinction between a normal and an inferior good is

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.