I have 10 Questions for My Finance Lab Assignment #8 that need answered.

1. Toni's Typesetters is analyzing a possible merger with Pete's Print Shop. Toni's has a tax loss carryforward of $450,000, which it could apply to Pete's expected earnings before taxes of $225,000 per year for the next 5 years. Using a 35% tax rate, compare the earnings after taxes for Pete's over the next 5 years both without and with the merger. Without the merger, Pete's Print Shop's earnings after taxes in years 1 through 5 is: With the merger, Pete's Print Shop's earnings after taxes in years 1 through 5 is: 2. Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $140,000. Cautionary would immediately sell some of Danger's assets for $14,000 if it makes the acquisition. Danger has a cash balance of $1,400 at the time of the acquisition. If Cautionary believes it can generate after-tax cash inflows of $30,000 per year for the next 88 years from the Danger acquisition, should the firm make the acquisition? Base your recommendation on the net present value of the outlay using Cautionary's 88% cost of capital. The net present value of the acquisition is: 3. Ratio of exchange and EPSMarla's Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Item Marla's Cafe Victory Club Earnings available for common stock $45,000 $5,000 Number of shares of common stock 30,000 5,000 outstanding Market price per share $18 $30 Marla's Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.6, what will be the earnings per share (EPS) based on the original shares of each firm? The EPS for Marla's original shareholders after the merger is: 4. All-Stores, Inc., is a holding company that has voting control over both General Stores and Star Stores. All-Stores owns General Stores and Star Stores common stock valued at $15,000 and $12,000, respectively. General's balance sheet lists $ 130,000 of total assets; Star has total assets of $110,000. All-Stores has total common stock equity of $20,000. a. What percentage of the total assets controlled by All-Stores does its common stock equity represent? b. If a stockholder holds $5,000 worth of All-Stores common stock equity, and this amount gives this stockholder voting control, what percentage of the total assets controlled does this stockholder's equity investment represent? 5. Bankruptcy legislationlong dashwage-earner planPersonal Finance Problem Jon Morgan is in a financial position where he owes more than he earns each month. Due to his lack of financial planning and a heavy debt load, Jon started missing payments and saw his credit rating plunge. Unless corrective action is taken, personal bankruptcy will follow. Jon recently contacted his lawyer in order to set up a wage earner plan with his creditors and establish a debt repayment schedule that is workable in light of his personal income. His creditors have all agreed to a plan under which interest payments and late fees will be waived during the repayment period. The process would have Jon make payments to the court, which then will pay off his creditors. Jon has outstanding debt of $ 28,000. His creditors have set a repayment period of 44 years during which monthly principal payments are required. They have waived all interest charges and late fees. Jon's yearly take-home income is $ 30,100. a.Calculate the monthly debt repayment amount. b.Determine how much excess income Jon will have each month after making these payments. 6. Tax creditsA U.S.-based MNC has a foreign subsidiary that earns $ 24,000 before local taxes, with all the after-tax funds to be available to the parent in the form of dividends. The applicable taxes consist of a 35 % foreign income tax rate, a foreign dividend withholding tax rate of 9.6 %, and a U.S. tax rate of 32 %. Calculate the net funds available to the parent MNC if: a.Foreign taxes can be applied as a credit against the MNC's U.S. tax liability. b.No tax credits are allowed. 7. Assume that the Mexican peso currently trades at 15 pesos to the U.S. dollar. During the year U.S. inflation is expected to average 3%, while Mexican inflation is expected to average 4%. What is the current value of one peso in terms of U.S. dollars? Given the relative inflation rates, what will the exchange rates be 1 year fromnow? Which currency is expected to appreciate and which currency is expected to depreciate over the next year? The current value of one Mexican peso in terms of U.S. dollars, US$, is US$ /MP. (Round to six decimal places.) 8. International investment diversificationPersonal Finance ProblemThe economies of the world tend to rise and fall in cycles that offset each other. International stocks can provide possible diversification for a portfolio heavy on U.S. equities. Because research on foreign companies is usually difficult for individual investors to track on their own, a foreign equity mutual fund offers the investor the expertise of a global fund manager. Foreign-stock funds provide exposure to overseas markets at varying levels of risk. Economic and currency risk can swing in a positive or negative direction. Hence, diversification is the key to managing risk. Funds that invest overseas fall into four basic categories: global, international, emerging-market, and country-specific. The wider the reach of the fund, the less risky it is likely to be. Brief explain the differences between the four funds. Which of the following funds has enormous growth potential, but also poses significant risks?(Select the best answer below.) A. Global fund B. International fund C. Emerging-market fund D. Country-specific fund 9. If Like A Lot Corp. borrows yen at a nominal annual interest rate of 4.85% and during the year the yen appreciates by 11.59 % what will the effective annual interest rate be for the loan? The effective annual interest rate, E, is _ % 10. Denim Industries can borrow its needed financing for expansion using one of two foreign lending facilities. It can borrow at a nominal annual interest rate of 9% in Mexican pesos or it can borrow at 4% in Canadian dollars. If the peso is expected to depreciate by 11.89% and the Canadian dollar is expected to appreciate by 3%, which loan has the lower effective annual interest rate? The effective annual interest rate of the loan in Mexican pesos is _%