Francis Corp. is coming to the market with a new offering of…

Francis Corp. is coming to the market with a new offering of 1,000,000 shares, at $20 to the public. Francis Corp. will receive $17 per share. The firm has 2 million shares outstanding and earnings of $8 million. What is the amount of dilution in earnings per share?

Officer Johnson prepared a warrant and affidavit and realize…

Officer Johnson prepared a warrant and affidavit and realized that he did not include a description of the red tracksuit and $1,000 cash in the warrant’s description of items to be seized. Accordingly, Officer Johnson cross-referenced on the face of the warrant information which was contained in the affidavit which specifically described the $1,000 and the red tracksuit. Both the warrant and the affidavit were served on the defendant.  If the warrant is challenged, the likely outcome will be

Officer Johnson was patrolling in an unmarked car on a highw…

Officer Johnson was patrolling in an unmarked car on a highway area under surveillance for drug trafficking and saw an overloaded camper truck traveling in tandem with a Pontiac. He radioed for help, and when Officer Kennedy responded, they attempted to stop the two vehicles. The Pontiac pulled over, but the truck continued on, pursued by Officer Kennedy. Once Officer Johnson obtained the identification of the driver of the Pontiac, he tried unsuccessfully to reach Officer Kennedy by radio. Officer Johnson then radioed for more assistance and when additional police officers arrived, he drove to where Officer Kennedy had stopped the truck. After smelling the odor of marijuana coming from the vehicle, Officer Johnson opened it, saw bales of marijuana, and arrested the driver. The entire encounter lasted around 20 minutes. Assume that marijuana is illegal in this jurisdiction.  Was this a valid investigative stop?

Jet To GO wants to lease production equipment from ABC Co. …

Jet To GO wants to lease production equipment from ABC Co.  The payments are $200,000 per year for 5 years payable at the beginning of each year. Encore won’t have to worry about annual maintenance costs if the equipment is leased; ABC Co. has agreed to service the equipment at no additional charge.   As an alternative, the bank offered to lend Jet To GO a loan of $950,000 to purchase the equipment.  The loan would be paid in equal instalments at the end of each year for 5 years at an annual interest rate of 11%.  At the end of 5 years, the equipment could be sold for an estimated $250,000.    However, Jet To GO would have to pay for annual maintenance fee of the machine estimated at $14,000 per year.    Jet To GO’s cost of capital is 13% and the tax rate is 40%.  The equipment belongs to a CCA class with a rate of 25%.    Required:   Should Jet To GO lease or borrow to purchase the equipment?  Show calculations to support your answer.  Access Excel Here.  

Officer Johnson was investigating a traffic accident and not…

Officer Johnson was investigating a traffic accident and noticed an orange/black motorcycle involved in the accident that looked like a bike that had been reported to be stolen. He discovered photos of the suspect on Facebook, obtained his address, and drove to the suspect’s residence. Officer Johnson noticed a cycle under a tarp parked in the driveway and then entered the property, lifted the tarp, and confirmed from a license plate check and VIN number that this was the stolen cycle. The suspect was arrested for theft.   The attorney for the suspect argues that this was an illegal search. Is he likely to prevail?