Swifty drilling company has leased property on which oil has been discovered. the oil wells on this property produced 16,700 barrels of oil during the past year that sold at an average sales price of $61 per barrel. total oil resources of this property are estimated to be 238,500 barrels. the lease provided for an outright payment of $548,550 to the lessor (owner) before drilling could be commenced and an annual rental of $27,555. a premium of 5% of the sales price of every barrel of oil removed is to be paid annually to the lessor. in addition, swifty (lessee) is to clean up all the waste and debris from drilling and to bear the costs of reconditioning the land for farming when the wells are abandoned. the estimated fair value, at the time of the lease, of this clean-up and reconditioning is $33,390. from the provisions of the lease agreement, compute the cost per barrel for the past year, exclusive of operating costs, to swifty drilling company.

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

The federal reserve's organization while all members of the federal reserve board of governors vote at federal open market committee (fomc) meetings, only of the regional bank presidents are members of the fomc. the federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? u.s. banks that cannot borrow elsewhere governments in developing countries during currency crises u.s. state governments when they run short on tax revenues the federal reserve's primary tool for changing the money supply is . in order to decrease the number of dollars in the u.s. economy (the money supply), the federal reserve will government bonds.

Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.