NEED ASAP pleeeeeeeeeessssssssssssseeeeeeeeee

1.) Fixed cost are $60,000 and variable cost are 40% of sales. Break
even sales equal ?


2.)The breakeven point in units increases when unit cost ? 


3.) You take out a 10 year mortgage today and will make equal monthly
payments over the next 10 years at a specifiend interest rate.  which
table would be used to solve this problem?

a. present value of $1
b. future value of a $1 
c. present value of an annuity of $1
d. future value of an annuity of $1 


4. A graphic description of sequence of possible outcomes is referred to as:

a. simulation 
b. decision tree
c. sensitivy anaylsis 
d captial budgeting 

5.
The capital budgeting model that is ordinarily considered the best
model for long range decision making is :
a. payback model 
b. accounting rate of return 
c. unadjusted rate of return model 
d. net present value model 

6.
Using financial leverage is a good financial strategy from the
viewpoint of stockholders of companies having?
a. high debt ratio 
b. cyclical highs and lows
c. steady or rising profits 
d. a steadily declining current ratio 


7.
You purchased a bond 3 years ago . The bond was purchased at par value $1000
The interest rate on the bond is 8%. It matures in 3 years. 
You want to sell the bond now.  what do you expect to get if the
current interest rate is 6%

8. 
as the director for capital budgeting for a big corporation you are
evaluating two mutually exclusive projects with the following net cash
flows:


year       project X          project z
0        -$100,000            -$100,000
1          $50,000             $10,000
2          $40,000             $30,000
3          $30,000             $40,000
4          $10,000             $60,000

if the required return rate is 12% which company project would you choose? 


9. 
The seattle corporation has a capital structure of: 

type          percent of structure            required return 

debt           30%                             8%

preferred stock  10%                           12%

common stock     60%                          15%


what is the wacc for seattle corp? 


10.
the comfort company makes lawn chairs. there fixed cost are $80,000
the chairs cost $45 to produce. they sell for $55

a.) they need to know how many chairs they need to sell to break even 
b.)they also need to know how many chairs they need to sell to clear $5,000
c.) if they decrease overhead by $10,000 how many chairs do they need
to sell to clear $5,000?

11.)
you want to issue 500,000 shares of preferred stock that will pay
$10.00 a year in perpetuity, if the market expectation is 10% how much
money would you expect the corporation to get for a public offering?

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Clarification of Question by sxyblondeambition-ga on 18 May 2005 13:16 PDT

I don't need questions (see below)



As the director of capital budgeting for Denver Corporation, you are
evaluating two mutually exclusive projects with the following net cash
flows:

      Year      Project X      Project Z
        0       -$100,000      -$100,000
        1          50,000         10,000
        2          40,000         30,000
        3          30,000         40,000
        4          10,000         60,000

If Denver's required rate of return is 12 percent, which would you choose?

4.The Seattle Corporation has a capital structure of;

Type	Percent of Structure	Required Return
Debt	30%	8%
Preferred Stock	10%	12%
Common Stock	60%	15%

What is the WACC for Seattle Corporation?


5.The Comfort Company makes lawn chairs.  There fixed costs are
$80,000. The chairs cost     $45.00 to produce. They sell for $ 55.00.
a.	 They would like to know how many chairs they need to sell to break-even. 
b.	 They also want to know how many chairs they need to sell to clear $ 5,000.00
c.	 If they decrease overhead by $ 10,000 how many chairs do they need
to sell to clear $5,000.00

6.You want to issue 500,000 shares of preferred stock that will pay
$10.00 a year in perpetuity. If the market expectation is 10% how much
money would you expect the corporation to get for the public offering?
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3.  NPV of Project X is $4239.20.  NPV of Project Z is -$553.32. 
Choose Project X.  Formula for the present value of a future sum is P
= F [1/(1+i) ^n].  So, convert each cash flow back to time zero and
then add them together for each project to find the NPV.

4.  (30%*8%) + (10%*12%) + (60%*15%) = 12.6%

5.a.  They earn $10 per chair.  Therefore, to cover their fixed costs,
they must sell 8000 chairs ($80,000/$10).
b.  They must sell an additional 500 chairs beyond the breakeven
point, or 13,000 chairs total.
c.  They must sell 7000 shares to cover the fixed costs plus an
additional 500 chairs to clear $5,000, or 12,000 chairs total.

6.  The value of a perpetuity of one dollar per year is 1/r. 
Therefore, the value of each share will be $10/0 .1 or $100.  The
total value of the 500,000 shares will be $50 million.

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Clarification of Question by sxyblondeambition-ga on 18 May 2005 13:22 PDT

I STILL NEED #1  THROUGH #7 ANSWERED ASAP PLEASE THANK YOU VERY MUCH !

Sounds like your Final or homework :-)

I'm doing the pre test and have answers to most of them but want to do
a check to make sure I've learned the material