(20-3). warrants maese industries inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $25. calculate the exercise value of the firm’s warrants if the common sells at each of the following prices: (1) $20, (2) $25, (3) $30, (4) $100. (hint: a warrant exercise value is the difference between the stock price and the purchase price specified by the warrant if the warrant were to be exercised.) assume the firm’s stock now sells for $20 per share. the company wants to sell some 20-year, $1,000 par value bonds with interest paid annually. each bond will have attached 50 warrants, each exercisable into 1 share of stock at an exercise price of $25. the firm’s straight bonds yield 12%. assume that each warrant will have a market value of $3 when the stock sells at $20. what coupon interest rate, and dollar coupon, must the company set on the bonds with warrants if they are to clear the market

Baker industries’s net income is $24,000, its interest expense is $5,000, and its tax rate is 40%. its notes payable equals $27,000, long-term debt equals $75,000, and common equity equals $250,000. the firm finances with only debt and common equity, so it has no preferred stock. what are the firm’s roe and roic?

Gino's restaurant is a popular restaurant in boston, massachusetts. the owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. the intern, in consultation with the owner, identified the following major activities: activity cost pool activity measure serving a party of diners number of parties served serving a diner number of diners served serving drinks number of drinks ordered some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. data concerning these activities are shown below. serving a party serving a dinner serving drinks total total cost $47,600 $153,000 $59,800 $260,400 total activity 7,000 parties 30,000 diners 46,000 drinks prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. she knew that the total cost for the month was $260,400 and that 30,000 diners had been served. therefore, the average cost per diner was $8.68.required: 1. compute the activity rates for each of the three activities 2. according to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. a party of four diners who ordered three drinks in total b. a party of two diners who do not order any drinks c. a lone diner who orders two drinks 3. convert the total costs you computed in part (1) above to costs per diner. in other words, what is the average cost per diner for serving each of the following parties: a. a party of four diners who order three drinks in total b. a party of two diner who do not order any drinks c. a lone diner who orders two drinks 4. why do the costs per diner for the three different parties differ from each other and from the overall average coast of $9.80 per diner?

For each example identify the most appropriate ctso