Hawar international is a shipping firm with a current share price of $ 4.95 and 9.2 million shares outstanding. suppose that hawar announces plans to lower its corporate taxes by borrowing $ 19.3 million and repurchasing shares, that hawar pays a corporate tax rate of 30 %, and that shareholders expect the change in debt to be permanent. a. if the only imperfection is corporate taxes, what will be the share price after this announcement? b. suppose the only imperfections are corporate taxes and financial distress costs. if the share price rises to $ 5.20 after this announcement, what is the pv of financial distress costs hawar will incur as the result of this new debt?

Money from an allowance or job is known as .

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

(30 total points) suppose a firm’s production function is given by q = l1/2*k1/2. the marginal product of labor and the marginal product of capital are given by: mpl = 1/ 2 1/ 2 2l k , and mpk = 1/ 2 1/ 2 2k l . a) (12 points) if the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output q = 18?