Larkspur Company has been operating for several years, and on December 31, 2020, presented the following balance sheet. LARKSPUR COMPANY BALANCE SHEET DECEMBER 31, 2020

Cash $36,400 Accounts payable $78,100
Receivables 69,200 Mortgage payable 141,500
Inventory 99,300 Common stock ($1 par) 154,400
Plant assets (net) 237,700 Retained earnings 68,600
$442,600 $442,600

The net income for 2020 was $25,000. Assume that total assets are the same in 2016 and 2017.
Compute each of the following ratios. For each of the four, indicate the manner in which it is computed and its significance as a in the analysis of the financial soundness of the company.
a. Current ratio.
b. Acid-test ratio.
c. Debt to assets ratio.
d. Return on assets.

The bonds issued by the south foot bear a coupon rate of 7.5 percent, payable semiannually. the bonds mature in 6.5 years, sell at par, and have a $1,000 face value. what is the yield to maturity

Working with a word processor requires more than just a knowledge of typing. a good word processor includes a number of tools designed to aid in formatting documents to meet the needs of the reader. in this project you will use your word-processing skills and a basic knowledge of apa style to format a research paper. the skills you will need for this project include the following: adjusting line spacing (double-spacing) breaking text into pages (page break) centering text changing the font, style, and size of the text editing text inserting page numbers inserting a table using spell check

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g