Abigail, Blake and Camila plan to launch a business. Abigail will fund the venture but wants to limit her liability to her initial investment. She has no interest in the daily operations. Blake will contribute his full efforts on a daily basis but has limited funds to invest in the business. Camila will be involved as a consultant and manager and will also contribute funds. Blake and Camila are willing to accept liability for the firm’s debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm’s profits and wish to minimize the initial costs of organizing the business. Which form of business entity should these individuals adopt?

For the past year, Zhao Events had taxable income of $198,600, beginning common stock of $68,000, beginning retained earnings of $318,750, ending common stock of $71,500, ending retained earnings of $316,940, interest expense of $11,300, and a tax rate of 21 percent. What is the amount of dividends paid during the year?

The stock of Singleton Builders pays a constant annual dividend, sells for $56.07 per share, and has a market rate of return of 12.2 percent. What is the amount of the next annual dividend?

At the beginning of the year, Smidovec Plumbing had current liabilities of $15,932 and total debt of $68,847. By year end, current liabilities were $13,870 and total debt was $72,415. What is the amount of net new borrowing for the year?

You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $38,000. You feel you can earn an APR of 10.6 percent compounded monthlyand plan to save $470 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation?

Financial planning:

Kiefer Service Company common stock sells for $36.84 per share and has a market rate of return of 15.8 percent. The company just paid an annual dividend of $1.61 per share. What is the dividend growth rate?

You have just received an offer in the mail from Friendly Loans. The company is offering to loan you$4,500 with low payments of $80 per month. If the interest rate on the loan is an APR of 14.3 percent compounded monthly, how long will it take for you to pay off the loan?

A Treasury bond is quoted at a price of 101.4621. What is the market price of this bond if the face value is $5,000?

You have just deposited $13,500 into an account that promises to pay you an annual interest rate of 7 percent each year for the next 6 years. You will leave the money invested in the account and 10 years from today, you need to have $26,400 in the account. What annual interest rate must you earn over the last 4 years to accomplish this goal?