Scrubber, inc, presented the following information in a note to its financial statements for the year ending december 31, 2016.

the company has a loan agreement with mountain state bank that states:

1. the current ratio should remain at least 2.0 to 1 at all times.

2. the debt-to-equity ration should not exceed .7 to 1 at any times.

3. the company must maintain $75,000 cash at all times.

the ratios at year-end are: current ratio, 2.3. to 1 and debt-to-equity ratio, .2 to 1. the amount of cash on the bank statement is $75,400, but the cash account after the adjustments from the bank reconciliation has a balance of $74,900. has scrubber violated its loan agreement?

a. no

b. yes, the cash balance is less than $75,000

c. yes, the current ratio is .3 or 30% larger than the agreement indicates.

d. yes, the cash balance is less than $75,000, and the debt-to-equity ratio is overstated.

Select the correct answerwhat is the responsibility of each of the twelve federal reserve's banks in their districts? a.they set the prime rateob.they monitor functioning of banks in their through onsite and offsite reviewsc.they assess taxes in their destnictd.they write fiscal policies

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.