Milano pizza club owns three identical restaurants popular for their specialty pizzas. each restaurant has a debt–equity ratio of 30 percent and makes interest payments of $59,000 at the end of each year. the cost of the firm’s levered equity is 15 percent. each store estimates that annual sales will be $1.66 million; annual cost of goods sold will be $850,000; and annual general and administrative costs will be $585,000. these cash flows are expected to remain the same forever. the corporate tax rate is 40 percent. use the flow to equity approach to determine the value of the company’s equity.

Max fischer is a beekeeper. his annual group insurance costs 11,700. his employer pays 60% of the cost. how much does max pay semimonthly for it?

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

The sec has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or group of clients because the sec staff believes this situation causes cpa firms to