Suppose you are a building contractor and you sign a contract to build a home for the Smiths. Performance was to begin on July 15, 2019. On July 1, 2019 Acme Enterprises offers you a position that will yield you two and a half times the amount of net income you could earn as an independent builder. To take the job you have to start on July 15. Since you cannot be in two places at the same time you must breach the contract with the Smiths in order to accept the new position. Assume also for the exercise that the price quoted by the building contractor was $550,000.00 which was the lowest market bid by a quality builder available and that the present bids run from the $610,000.00 to $640,000.00 range for a comparable home. What are your options in this situation as the building contractor? What remedy do the Smiths have?

Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?

You decide that structural changes must be made at holden evans immediately to deal with the additional product lines. equipment and employees will have to be moved around to optimize production of all of the products in house. this shouldn't be too difficult because many of the vitamins and supplements are produced using similar processes. you have several options available to facilitate this process. which of the following methods do you think is the best choice? select an option from the choices below and click submit. because the changes may result in the loss of several key employees, you hire outside consultants who specialize in hr law. this way any employee terminations will not result in lawsuits. you select an outside consulting firm that your company has never worked with before, but it has a reputation for using new technology in product lines that are similar to yours. you select several trusted managers to facilitate the transition of operations from overseas. these individuals can gather information and also smooth any rough spots that may occur.

73. calculate the weighted average cost of capital (wacc) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%. (a) 15.6% (b) 16.0% (c) 15.0% (d) 16.6% (e) none of the above