I need help answering a few corporate finance questions.

3. SA Boot Inc. had sales of $15,000 in 2005. The cost of goods sold was $5,500m general and administrative expenses were $2,000, interest expense was $500, and deprecation was $2,000. The firm's tax rate is 40%. What are earnings before interest and taxes? What is net income? What is cash flow from operation? 4. You believe that you will have the kind of lifestyle in 40 years when you plan on retiring that will require $150,000 a year for about 20 years. If the current rate of return on your retirement portfolio is 10% per year, and you are starting with no money, how much will you have to save each month until retirement in order to meet your retirement goal knowing that inflation will probably average around 5%? You don't plan on leaving any money after you pass away to your \"greedy\" offspring. 5. Several years ago, AMGN issues new bonds at face value with a yield-to-maturity of 8%. Now, with 8 years left until the maturity of the bonds, the company has run into some hard times and the rating on their bonds has had a negative impact on their bond prices. The yield-to-maturity is not at 12%. What has happened tot her price of the bond? If investors believe that the company will make good on their coupon payments but MIGHT go bankrupt before the full balance on their principal is returned, they now think that all the most, they might get back only 75% of the face value at maturity. Knowing all this, if they were to buy this bond TODAY, what yield-to-maturity would they expect to receive? 6. Here are the data on two stocks. The discount rate is 9%. Valero Tesoro Return on Equity 15% 10% Earnings per Share $2.00 $1.50 Dividend per Share $1.00 $1.00 What are the dividend payout ratios for each? What are the expected dividend growth rates for each firm? What is the proper stock price for each company? Valero Tesoro Div Payout Ratio _______ _______ Div Growth Rate _______ _______ Price of Stock _______ _______ 8. SA Printing Services is considering the purchase of new type-setting equipment for $6,000 and selling their old one for $2,000. The new equipment will last for 6 years and save $1,200 a year in expenses. The opportunity cost of capital is 16% and the company's tax rate is 35% A. Using a straight-line deprecation schedule with zero salvage value at the end of a 6 year life, what are the cash flows of the project each year?(the old equipment is fully depreciated). B. What is the project's NPV? C. What is the NPV and IRR if using the 5-year MACRS schedule? 9. SA Precious Stone fabricates artificial emeralds and sells them for $120 a stone. It costs $65 to make them. The fixed cost each year to run the factory is $200,000. The machinery to make these emeralds costs $1 million and is depreciated straight-line over 10 years with zero salvage value. What is the accounting break-even? What is the NPV break-even given a 35% corporate tax rate with an opportunity cost of capital at 12%? 10. Use the following information to solve for both the average variance and standard deviation of returns for the market: Year Returns 1999 27.52 2000 12.9 2001 -34.0 2002 11.9 2003 23.6 2004 36.6 If I had $500,000 to invest, how would you as the Wealth Manager explain this risk-return relationship in a way that I would understand? 12. A corporate project under consideration has an IRR of 12% and a beta of 0.9. The risk-free rate is 6% (T-Bill Rate). The expected rate of return for the market portfolio this year is 17%. Should those project be accepted? Should it be accepted if now the Beta is 1.6? Explain, what might have caused an increase in beta