Amazing Brentwood Inc bought a long$-$term asset for $$100,000.$ The asset has a $30\%$ CCA rate. At the end of year $5,$ the firm sold the asset for $25\%$ of its original value

In the year of $2018,$ The firm just paid $$420$ in dividends and $$611$ in interest expense. The addition to retained earnings is $$397\mathrm{.}74$ and net new equity is $$750.$ The tax rate is $34$ percent. Sales are $$6,250$ and depreciation is $$710.$

$1.$ Given this information, determine the value of the terminal loss or recapture at the end of year.

$2.$ What are the earnings before interest and taxes in the year of $2018?$

$3.$ What is the after$-$tax net profit for the year $2018?$

The company plans to efficiently maintain the assets in the long run. The average total assets of the firm are $$45,000.$ The firm also plans to cover the solvency ratios in a reasonable manner to seek additional refinancing from the capital providers. The company has $50,000$ shares outstanding. The company plans to raise more capital by issuing shares. The company$$s ROE has been determined to be $10\%$ which is likely to go up in the next year. The company is concerned about the profitability ratios of the company and it is seeking your advice to improve them. The sales of the recent quarter of $2019$ have gone down to $$5,800$ whereas the net earnings are $ $3,200.$

The company is planning to expand in the future. It is planning to open one more branch in Greater Vancouver region. The shareholders, Board of Directors $($BOD$)$ and the managers may have disagreement on its decision though.

$4.$ What is the Asset turnover for the company?

$5.$ Calculate the TIE ratio and also respond whether it is satisfactory or not?

$6.$ How will issuing more shares affect the capital structure of the company?

$7.$ What does the firm need to do to raise its ROE?

$8.$ Calculate the profit margin ratio of the company and comment on the profitability performance of the company.

$9.$ What type of financial decision is the company making with the expansion?

$10.$ The disagreement among the shareholders, BOD and the managers is popularly points to what in finance?