Suppose that a company's equity is currently selling for $22.00 per share and that there are 4.00 million shares outstanding. If the firm also has 30 thousand bonds outstanding, which are selling at 101.00 percent of par, what are the firm's current capital structure weights for equity and debt respectively?

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Your company has a 35% tax rate and has $752 million in assets, currently financed entirely with equity. Equity is worth $50.20 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below:

State Recession Average Boom

Probability of State .20 .55 .25

Expect EBIT in State $102 million $177 million $237 million

The firm is considering switching to a 15-percent debt capital structure, and has determined that they would have to pay a 11 percent yield on perpetual debt in either event. What will be the standard deviation in EPS if they switch to the proposed capital structure? (Round your intermediate calculations and final answer to 2 decimal places except calculation of number of shares which should be rounded to nearest whole number.)

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Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using the average approach if it was determined that years 2013 and 2014 were "stale"?

Year 2013 2014 2015 2016 2017

Sales $1,900,000 $2,100,000 $2,700,000 $2,800,000 $3,000,000

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Hollywood Shoes would like to maintain their cash account at a minimum level of $66,000, but expect the standard deviation in net daily cash flows to be $5,600; the effective annual rate on marketable securities to be 6.25 percent per year; and the trading cost per sale or purchase of marketable securities to be $260 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.)