A summary of cash flows for Parker Consulting Group for the year ended January 31, 20Y4, follows: Cash receipts:

Cash received from customers $647,500
Cash received from issuing common stock 63,500
Cash payments:

Cash paid for operating expenses 485,500
Cash paid for land 90,000
Cash paid for dividends 14,500

The cash balance as of February 1, 20Y3, was $57,000.

Labels
Cash flows from financing activities
Cash flows from operating activities
Cash flows from investing activities
Cash flows used for financing activities
Cash flows used for operating activities
Cash flows used for investing activities
For the Year Ended January 31, 20Y4
January 31, 20Y4
Amount Descriptions
Cash balance, February 1, 20Y3
Cash balance, January 31, 20Y4
Cash received from customers
Cash received from issuing common stock
Cash paid for operating expenses
Cash paid for land
Cash paid for dividends
Net cash flows from financing activities
Net cash flows from investing activities
Net cash flows from operating activities
Net cash flows used for financing activities
Net cash flows used for investing activities
Net cash flows used for operating activities
Net decrease in cash
Net increase in cash

Required:
Prepare a statement of cash flows for Parker Consulting Group for the year ended January 31, 20Y4.

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity. calculate the cost of new stock using the dividend growth approach. what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics. each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings. equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.