Northern wood products is an all-equity firm with 14,000 shares of stock outstanding and a total market value of $585,480. based on its current capital structure, the firm is expected to have earnings before interest and taxes of $46,800 if the economy is normal, $21,200 if the economy is in a recession, and $56,000 if the economy booms. ignore taxes. management is considering issuing $150,000 of debt at a coupon rate of 7 percent. if the firm issues the debt, the proceeds will be used to repurchase stock. what will the earnings per share be if the debt is issued and the economy is in a recession? (round the number of shares repurchased down to the nearest whole share.)

Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers. customers pay a deposit for each container received. the deposit is equal to the container’s cost. they receive a refund when the container is returned. during 2018, deposits collected on containers shipped were $856,000. deposits are forfeited if containers are not returned within 18 months. containers held by customers at january 1, 2018, represented deposits of $587,000. in 2018, $811,000 was refunded and deposits forfeited were $41,000. required: 1. prepare the appropriate journal entries for the deposits received and returned during 2018. 2. determine the liability for refundable deposits to be reported on the december 31, 2018, balance sheet.

Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?

Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?