All of the following are common domestic risks faced by companies except:  

The income statement approach to measuring income tax expense:  

Santa CorporationSanta Corporation manufactures Christmas decorations and supplies throughout the world. The company owns property, plants, and equipment and also enters into leases for certain facilities. Assume that Santa’s incremental borrowing rate is 8%. The company’s tax rate is 40%. Listed below are selected financial data for Santa. Year 2 Year 1 Year 0 Property, Plant, & Equipment (net) $2,882,468 $2,717,453 $2,658,214 Total Assets 3,756,854 3,405,484 3,254,896 Common Shareholders’ Equity 867,992 652,626 587,951 Sales $2,922,915 $2,415,632 Cost of Goods Sold 2,016,811 1,642,630 Depreciation Expense 78,584 67,542 Interest Expense 106,663 90,343 Net Income 248,448 217,407    Using the information provided by Santa Corporation, calculate the company’s Year 2 fixed asset ratio.  

Below is selected information from Marker’s financial statements: Dec. 31, Year 1 Dec. 31, Year 0 Cash and short-term investments $ 958,245 $ 745,800 Accounts Receivable (net) 125,850 135,400 Inventories 195,650 175,840 Prepaid Expenses and other current assets 45,300 30,860 Total Current Assets $1,325,045 $1,087,900 Plant, Property and Equipment, net 1,478,320 1,358,700 Intangible Assets 125,600 120,400 Total Assets $2,928,965 $2,567,000 Short-term borrowings $ 25,190 $ 38,108 Current portion of long-term debt 45,000 40,000 Accounts payable 285,400 325,900 Accrued liabilities 916,722 705,891 Income taxes payable 125,400 115,600 Total Current Liabilities $1,397,712 $1,225,499 Long-term Debt 450,000 430,000 Total Liabilities $1,847,712 $1,655,499 Shareholders’ Equity $1,081,253 $ 911,501 Total Liabilities and Shareholders’ Equity $2,928,965 $2,567,000 Selected Income Statement Data – for the year ending December 31, Year 1: Net Sales $3,210,645 Cost of Goods Sold (2,310,210) Operating Income $ 900,435 Net Income $ 324,850 Selected Statement of Cash Flow Data – for the year ending December 31, Year 1: Cash Flows from Operations $584,750 Interest Expense 42,400 Income Tax Expense 114,200 Marker’s Year 1 Interest Coverage ratio is:  

Zonk Corp.The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): Total assets $7,460 Interest-bearing debt $3,652 Average pre-tax borrowing cost 10.5% Common equity: Book value $2,950 Market value $13,685 Income tax rate 35% Market equity beta 1.13 Assuming that riskless rate is 4.6% and the market premium is 7.3%, calculate Zonk’s cost of equity capital:  

Which of the following is not one of the GAAP classifications for derivatives?  

Carl IndustriesCarl Industries has condensed balance sheets as shown: Year 2 Year 1 Year 0 Assets: Current assets 65,000 $46,500 $80,000 Plant & equipment, net 600,000 420,000 410,000 Intangible assets, net 15,000 36,500 50,000 Total assets 680,000 $503,000 540,000 Liabilities & Stockholders’ Equity: Current liabilities $70,000 $25,000 $33,500 Long-term liabilities 420,000 290,000 400,000 Stockholders’ equity 190,000 188,000 106,500 Total liabilities & equity $680,000 $503,000 540,000 Refer to the information for Carl Industries. In a common size balance sheet for Year 0, total liabilities and equity are expressed as:  

Current assets are defined as:  

All of the following are firms that may experience a long lag between the expenditures of cash and the receipt of cash from customers, except:  

If a portfolio manager had to estimate the fair value of investments in timber, which of the following would he/she most likely identify as the level of inputs to determine this?