Siebel incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 6 percent annually into the foreseeable future. the firm is debt-free, capital spending equals the firm's rate of depreciation; and the annual change in working capital is expected to be minimal. the firm's beta is estimated to be 2.5, the 10-year treasury bond is 5 percent, and the historical risk premium of stocks over the risk-free rate is 6.0 percent. publicly-traded rand technology, a direct competitor of siebel's, was sold recently at a purchase price of 10 times its 2009 after-tax earnings, which included a 25 percent premium over its current market price. aware of the premium paid for the purchase of rand, siebel's equity owners would like to determine what it might be worth if they were to attempt to sell the firm in the near future. they chose to value the firm using the discounted cash flow and comparable recent transactions methods. they believe that either method provides an equally valid. estimate of the firm's value.

a what is the value of siebel using the dcf method?
b what is the value using the comparable recent transactions method?
c what would be the value of the firm if we combine the results of both methods?

On july 1, 2016, killearn company acquired 103,000 of the outstanding shares of shaun company for $21 per share. this acquisition gave killearn a 40 percent ownership of shaun and allowed killearn to significantly influence the investee's decisions. as of july 1, 2016, the investee had assets with a book value of $6 million and liabilities of $1,468,500. at the time, shaun held equipment appraised at $140,000 above book value; it was considered to have a seven-year remaining life with no salvage value. shaun also held a copyright with a five-year remaining life on its books that was undervalued by $562,500. any remaining excess cost was attributable to goodwill. depreciation and amortization are computed using the straight-line method. killearn applies the equity method for its investment in shaun. shaun's policy is to declare and pay a $1 per share cash dividend every april 1 and october 1. shaun's income, earned evenly throughout each year, was $580,000 in 2016, $606,600 in 2017, and $649,200 in 2018. in addition, killearn sold inventory costing $93,000 to shaun for $155,000 during 2017. shaun resold $97,500 of this inventory during 2017 and the remaining $57,500 during 2018.a. determine the equity income to be recognized by killearn during each of these years. 2016 2017 2018b. compute killearn’s investment in shaun company’s balance as of december 31, 2018.

Alicia has a collision deductible of $500 and a bodily injury liability coverage limit of $50,000. she hits another driver and injures them severely. the case goes to trial and there is a verdict to compensate the injured person for $40,000 how much does she pay?

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was: