Question: Zeke bought a $2,300 bobsled on

> Define each of the following terms: a. Operating plan; financial plan b. Spontaneous liabilities; profit margin; payout ratio c. Additional funds needed (AFN); AFN equation; capital intensity ratio; self-supporting growth rate d. Forecasted financial sta

> What is an agent, and what is a principal? What kinds of situations in companies give rise to conflicts between these two, called agency conflicts?

> Spencer Supplies’s stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60. a. If investors require a 9% return, what rate of growth must be expected for Spencer? b. If Sp

> Four economic classifications of mergers are: (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibili

> Shi Import-Export’s balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi’s tax rate is 40%, rd 5 6%, rps 5 5.8%, and rs 5 12%. If Shi has a target capital structure of 30% debt, 5% preferr

> During the last few years, Jana Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion prog

> Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Because both forklifts perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The

> Define each of the following terms: a. Capital budgeting; payback period; discounted payback period b. Independent projects; mutually exclusive projects c. Net present value (NPV) method; internal rate of return (IRR) method; profitability index (PI) d.

> Wansley Lumber is considering the purchase of a paper company, which would require an initial investment of $300 million. Wansley estimates that the paper company would provide net cash flows of $40 million at the end of each of the next 20 years. The co

> Integrated Waveguide Technologies (IWT) is a 6-yearold company founded by Hunt Jackson and David Smithfield to exploit meta material plasmonic technology to develop and manufacture miniature microwave frequency directional transmitters and receivers for

> Assume you have just been hired as a business manager of Pizza Palace, a regional pizza restaurant chain. The company’s EBIT was $50 million last year and is not expected to grow. The firm is currently financed with all equity, and it h

> What is the Free Cash Flow to Equity (FCFE) model? How might it be applied? When is it not appropriate?

> A company’s most recent free cash flow to equity was $100 and is expected to grow at 5% thereafter. The company’s cost of equity is 10%. Its WACC is 8.72%. What is its current intrinsic value?

> What’s the difference between an IPO and an SEO? Would you view purchasing a stock in an SEO to be more or less risky than purchasing a stock in an IPO? Would you expect the same first-day returns for an SEO purchase as for an IPO purchase? Why?

> In 1983, the Japanese yen–U.S. dollar exchange rate (USD/JPY) was 245 yen per dollar, and the dollar cost of a compact Japanese-manufactured car was $8,000. Suppose that now the exchange rate is 80 yen per dollar. Assume there has been no inflation in th

> Gary earns $42,990 per year. He is paid weekly. He currently has a $456-per-month car loan payment, and he pays $1,277.00 per year for auto insurance. Is one week’s paycheck enough to pay for his monthly auto loan and his monthly insurance bill? Explain.

> Max works x hours per week and has a 3-week vacation each year. Mindy works y hours per week and has a 4-week vacation each year. Express their combined number of work hours per year.

> Manuel works at Cheesecake King. He earns $15 per hour as a busboy. The waiters he helps give him 25% of their tips. a. If Manuel worked 6 hours today, how much did he earn, without tips? b. The waiters Manuel assisted waited on 16 tables, and the tota

> Julianne works as a waitress. She earns $13 per hour plus tips. a. Today she worked x hours. Express her pay for these hours algebraically. b. She served nine tables. The total bill for these nine tables was y dollars. Julianne received 18% in tips fro

> Jennifer did not pay her FlashCard bill in full in September. Her October bill showed a finance charge, and she wants to see whether or not it is correct. The average daily balance is $970.50, and the APR is 15.6%. Find the finance charge for her October

> Jim worked 40 regular hours last week, plus 8 overtime hours at the time-anda-half rate. His gross pay was $884. a. What was his hourly rate? b. What was his hourly overtime rate?

> Michael earns $21 per hour and works 40 hours per week. How many overtime hours would he have to work in a week for his time-and-a-half overtime pay to be greater than his regular gross pay?

> Ron earns x dollars per hour. He regularly works 40 hours per week. Express his annual salary algebraically.

> Colby and Cheryl work in different local factories. Colby regularly earns $18 per hour, and he is paid time-and-a-half for each hour of overtime he works. Cheryl regularly earns $16.60 per hour, and she is paid double time for an hour of overtime. Who ea

> Pedro works 35 regular hours per week at the Meadow Deli. His hours over 35 are considered overtime. He earns $15 per hour and receives time-and-a-half pay for each hour of overtime he works. Last week he worked 41 hours and received a gross pay of $305.

> Suni needs to repay her school loan in 4 years. How much must she semiannually deposit into an account that pays 0.9% interest, compounded semiannually, to have $100,000 to repay the loan?

> You can receive Social Security payments for being disabled even if you have not retired or reached age 62. You need a certain number of Social Security credits to qualify for this. • If you become disabled before age 24, you generally need six credits

> Desta wants to purchase “The Ultimate Plan” from her cell phone provider. If she enrolls in this plan, she can purchase the latest cell phone from the provider for $250. The plan consists of unlimited talk and text and 18GB of data for $100 per month. It

> The piecewise function below gives the cost f(x) of x text messages per month. Which would be the least expensive plan for a person who had d text messages: a plan in which 5 c 31 or a plan in which 5 c 40? Explain when x sd c + p(x – d) when x >d f

> Throughout this lesson you have used the greatest integer function 5yx [] . Use your graphing calculator to view the graph of this function and find the y-coordinate for each of the following x-values. a. 2.3 b. 2.99 c. 3 d. 3.01 e. 3.99

> The Fi-Zone cable TV/Internet/phone provider charges $100 per month for all three services for a new customer’s first year. Tobi normally pays p dollars for her monthly home phone service, i dollars for Internet service, and c dollars for cable televisio

> Lauren did not pay her January FlashCard bill in full, so her February bill has a finance charge added on. The average daily balance is $510.44, and the monthly periodic rate is 1.3%. What should Lauren’s finance charge be on her February statement?

> Write the profit function for the given expense and revenue functions. E = 22,500p +180,000 R = 2330p2 +19,000p

> Text-Time charges $45 for an international texting plan with 300 text messages included. If the customer goes over the 300 messages, the cost is $0.10 per message. They have an unlimited plan for $59 per month. a. If x represents the number of text mess

> A cable TV/Internet/phone provider charges Janet $110 per month for all three services. In addition, Janet’s monthly cell phone bill averages $98 per month. a. What does Janet pay annually for these services? b. What is her average cost per day for the

> A local cable TV/Internet/phone provider charges new customers $129 for all three services, per month, for the first year under their “3 for 129” promotion. Joanne normally pays $74 for her monthly home phone service, $59 for Internet service, and $69 fo

> Danielle is examining the change in the money flow for Yahoo! Inc. (YHOO) shares on two consecutive dates. The information is given in the table. Do the December 1 numbers reflect a positive or negative money flow? Explain. Date High Low Close Volum

> Vicki’s phone company charges x dollars for unlimited texting per month, or t dollars per text message sent or received. If she has m text messages for the month, express the difference in cost between the per-text plan and the unlimited plan algebraical

> Riley purchased a 30-day international cell phone plan for use during winter break. There is a one-time fee of $35 and it includes 150 MB of data usage. Each extra megabyte, or part thereof, of data costs $0.28. Find the cost of the plan if he uses 388 M

> The Tell-All Phone Company prepaid phone card has charges of $0.58 for the first 2 minutes and $0.21 for each extra minute (or part of a minute). Express their rate schedule as a piecewise function. Let m represent the number of minutes and let c(m) repr

> A phone company set the following rate schedule for an m-minute call from any of its pay phones. a. What is the cost of a call that is under 6 minutes? b. What is the cost of a 14-minute call? c. What is the cost of a 9½-minute call?

> A pay phone at a shopping mall charges $0.68 for the first 4 minutes and $0.21 for each extra minute (or part of a minute). a. Find the cost of a 10-minute call on this phone. b. Find the cost of a 13.44-minute call on this phone.

> Parisa’s cell phone plan has a monthly fee of $95, which includes unlimited free text messages and phone calls and 5GB of data. Each extra gigabyte of data, or part thereof, costs $14. a. Find the cost of a month in which Parisa used 6.2GB of data. b.

> Aaron’s cell phone plan includes 3GB of data. On the 21st day of his billing period, Aaron received a message from his service provider that he had already used 75% of his data allowance for the 31-day billing period. At this rate, will he use more than

> Ralph just received his June Flash Card bill. He did not pay his May bill in full, so his June bill shows a previous balance and a finance charge. The average daily balance is $470, and the monthly periodic rate is 1.5%. What should Ralph’s finance charg

> President Carter’s quote could have been revised in 2016 since, at that point in time, 46% of the world had Internet access. Interpret the quote in the context of what you know about the standard of living throughout the world today.

> Mazzeo’s Appliance Store requires a down payment of 13 on all installment purchases. Norton’s Depot requires a 30% down payment on installment purchases. Which store’s down payment rate is lower?

> Janine is 21 years old. She opens an account that pays 1.25% interest, compounded monthly. She sets a goal of saving $10,000 by the time she is 24 years old. How much must she deposit each month?

> Gary is buying a $1,250 computer on an installment plan. He makes a down payment of $150. He has to make monthly payments of $48.25 for 212 years. What is the total finance charge?

> Interpret the quote in terms of what you have learned about essential and discretionary expenses.

> Jean bought a $1,980 snow thrower on an installment plan. The installment agreement included a 10% down payment and 18 monthly payments of $116 each. a. How much is the down payment? b. What is the total amount of the monthly payments? c. How much did

> Craig wants to purchase a boat that costs $1,420. He signs an installment agreement requiring a 20% down payment. He currently has $250 saved. Does he have enough for the down payment?

> Monique buys a $4,700 air conditioning system using an installment plan that requires 15% down. How much is the down payment?

> Bernie bought a refrigerator at a special sale. The refrigerator regularly sold for $986. No down payment was required. Bernie has to pay $69 per month for 1½ years. What is the average amount Bernie pays in interest each month?

> Chris purchases living room furniture for $4,345 from Halloran Gallery. She has a 1-year, no-interest, no-money-down, deferred payment plan. She does have to make a $15 monthly payment for the first 11 months. a. What is the sum of these monthly paymen

> How might the quote apply to what you have learned?

> If Tanya purchased a $1,700 set of golf clubs on a 9-month layaway plan and had to pay a monthly payment of $201, what is the sum of the monthly payments? What was the fee charged for the layaway plan?

> Mary wants to go on a $10,000 vacation in 6 months. She has a bank account that pays 2.25% interest, compounded monthly. How much must she deposit each month to afford the vacation?

> Kate is a professional musician. She wants to make an essential purchase of an upgraded used bass guitar for her work. She found the following prices for the same make and model bass guitar from various sellers: $699, $599, $699, $680, $590, $720, $650,

> Adam bought a $1,670 custom video game/sound system on a special no-interest plan. He made a $100 down payment and agreed to pay the entire purchase off in 1½ years. The minimum monthly payment is $10. If he makes the minimum monthly payment up until the

> Interpret the quote in the context of what you learned about consumer credit in this section. Solve each problem. Round monetary amounts to the nearest cent.

> Nick and Liz have decided to move from the city to the suburbs. This means that they will have to make the essential purchase of a car in order to get to work. They researched used 2-year-old cars of the same make, model, condition, and equipped with the

> Medications are essential expenses. DeWitt has composed a price list of antibiotics available at different pharmacies in his neighborhood. In reviewing his list, he can’t find the number of pharmacies selling the antibiotics for $8. Examine the frequency

> The following arithmetic sequence models an installment purchase. Give the down payment, monthly payment, and length of the plan. 400, 510, 620, 730, 840, 950, 1,060.

> Samantha’s grandfather is debt-free—he bought his car and his house without taking out a loan. He saved and paid cash. He wanted to take out a loan to buy Samantha a car for college graduation. The bank turned him down. Explain why.

> The following inequalities give information on your credit scores. Let x represent your credit score. • If x > 700, your credit score is excellent. • If 680 < x < 700, your credit score is good. • If 620 < x < 680, your credit score should be watched car

> Write the sigma notation mean formula for the 4 consecutive days that would have the lowest mean of the week. Elizabeth wants to change cell phone plans. Before contacting the service provider, she makes a table of her cell phone minutes used over the co

> Darlene purchases $20,000 worth of stock on her broker’s advice and pays her broker a 1.5% broker fee. She sells her stock when it increases to $28,600 two years later, and uses a discount broker who charges $21 per trade. Compute Darlene’s net proceeds

> Omar wants to open an account for his grandchildren that he hopes will have $80,000 in it after 20 years. How much must he deposit now into an account that yields 1.75% interest, compounded monthly, so he can be assured of reaching his goal?

> The piecewise function describes a newspaper&acirc;&#128;&#153;s classified ad rates. a. If x represents the number of lines, and y represents the cost, translate the function into words. b. If the function is graphed, what are the coordinates of the

> Some stores offer a rent-to-own plan. The customer makes a down payment, receives the merchandise at time of purchase, and makes monthly payments. The sum of the monthly payments is lower than the cost of the item. When the last payment is made, customer

> Audrey purchases a riding lawnmower using a 2-year, no-interest deferred payment plan at Lawn Depot for x dollars. There was a down payment of d dollars and a monthly payment of m dollars. Express the amount of the last payment algebraically.

> Online Car Auctioneer charges a commission for classified ads. If the car sells, the seller is charged 4% of the advertised price, not of the price for which the car actually sells. If the car doesn’t sell, the seller pays nothing. If Barbara advertises

> Leslie placed this ad in Collector Car Monthly. a. If the publication charges $48 for the first three lines and $5 for each extra line, how much will this ad cost Leslie? b. Ruth buys the car for 8% less than the advertised price. How much does she pa

> The Good Ole Times magazine charges for ads by the “column inch.” A column inch is as wide as one column, and it is 1 inch high. The cost is $67 per column inch. How much would the magazine charge to print a 2½-inch ad?

> The Kings Park Register gives senior citizens a 10% discount on automotive ads. Mr. Quadrino, a senior citizen, is selling his car and wants to take out a four-line ad. The paper charges $6.50 per line. What is the price of the ad for Mr. Quadrino?

> Ari purchased a microwave oven on an installment plan for m dollars. He made a 20% down payment and agreed to pay x dollars per month for two years. Express the finance charge (interest) algebraically.

> The Bayside Bugle charges by the word to run automotive ads. The newspaper charges $18 for the first 20 words and $0.35 for each additional word. How much would a 27-word ad cost?

> Ralph placed a classified ad to sell his used SUV for $18,500. After 2 weeks, he didn’t sell the SUV, and the newspaper suggested lowering the price 5%. What would the new price be if Ralph reduced it according to the suggestion?

> Bob wants $50,000 at the end of 7 years in order to buy a car. If his bank pays 1.2% interest, compounded annually, how much must he deposit each year in order to reach his goal?

> Fierro Brothers, a discount broker, charges their customers a $19 flat fee per trade. The Sondo Investment House charges a 2% commission. For what amount of stock would both brokers charge the same commission?

> Samantha purchased a used car for $4,200. Her state charges 4% tax for the car, $47 for registration, $50 for a new title certificate, and $35 for a state safety and emissions inspection. How much does Samantha need to pay for these extra charges, not in

> The Auto Times charges g dollars for a classified ad with m or less lines. Each additional line is d dollars. If x . m, express the cost of an x-line ad algebraically.

> A local newspaper charges g dollars for a four-line classified ad. Each additional line costs d dollars. Write an expression for the cost of a seven-line ad.

> The Antique Auto News charges $10 for a 10-word classified ad. Each additional word costs $0.40. For an extra $40, a seller can include a photo in the ad. How much would a 20-word ad with a photo cost?

> The North Shore News charges $19.50 for a two-line automotive ad. Each additional line costs $7. How much does a six-line ad cost?

> Interpret the quote in the context of what you learned about buying and selling cars in this lesson.

> Bob can afford to deposit $400 a month into a retirement account that compounds interest monthly with an APR of 1.8%. His plan is to have $200,000 saved so that he can then retire. Approximately how long will it take him to reach this goal?

> John is 60 years old. He plans to retire in 2 years. He now has $400,000 in a savings account that yields 2.1% interest compounded monthly. He has calculated that his final working year’s salary will be $88,000. He has been told by his financial advisor

> Fiona opened a retirement account that has an annual rate of 2.2%. She is planning on retiring in 20 years. How much must she deposit into that account each year so that she can have a total of $600,000 by the time she retires?

> Complete the table to find the periodic deposit investment amounts. Future Value Interest Rate Time Deposit $50,000 2%, compounded annually 8 years 4 years a. $25,000 1.5%, compounded semiannually 1.25% compounded quarterly 0.94% compounded monthly

> Laura has been contributing to a retirement account that pays 1.75% interest with pre-tax dollars. This account compounds interest monthly. She has put $500 per month into the account. At the end of 10 years, she needed to pay some medical bills and had

> Mackin Investing charges its customers a 1% commission. The Ross Group, a discount broker, charges $25 per trade. For what amount of stock would both brokers charge the same commission?

> A taxpayer who pays 22% in taxes each year has these two accounts. Account 1: $10,000 is placed in a tax-deferred account that pays 2.1% interest compounded annually for 25 years. Account 2: $10,000 is placed in a taxable account that pays 2.1% interest

> At the age of 30, Jasmine started a retirement account with $50,000, which compounded interest semi-annually with an APR of 1.75%. She made no further deposits. After 25 years, she decided to withdraw 50% of what had accumulated in the account so that sh

> Jay just graduated from college and he has decided to open a retirement account that pays 1.75% interest compounded monthly. If he has direct deposits of $100 per month taken out of his paycheck, how much will he have in the account after 42 years?

> Airline flights can be either discretionary or essential. For most people, the price you pay for where you sit in the plane is a discretionary expense. The seat map for a particular flight is shown here. There are a total of 149 seats on this flight. A

> Ricky is 35 years old. He plans to retire when he is 63. He has opened a traditional retirement account that pays 1% interest compounded monthly. If he makes monthly deposits of $400, how much will he have in the account by the time he retires?

> Is there a difference in the tax in Exercises 17 and 18? If so, how much and which method favors the taxpayer?

> Four people invested in a restaurant. One person invested $100,000. Two others invested in the ratio x:2x, and the fourth person invested an amount equal to the other three investors combined. The total investment was $1,100,000. a. Write an expression