An old Wampanoag tale predicted that:

The prime mover for forearm extension is the [A] while an antagonistic muscle would be the [B].

The arrow is pointing at the open area called the:

What are agency costs? What are the two types of agency costs?

Jasmine has a taxable income of $120,000 as a single filer. Using the tax rate table below, compute her a) total tax liability, b) average tax rate, and c) marginal tax rate.Taxable IncomeTax Rate$0 – 11,00010%$11,000 – 44,72512%$44,725 – 95,37522%$95,375 – 182,10024%$182,100 – 231,25032%$231,250 – 578,12535%$578,125+37%

Pioneer Aviation has total liabilities of $23,800 and total equity of $46,200. Current assets are $8,600. What is the common-size percentage for the current assets?

Given the total debt ratio, what other two ratios can be computed? Explain how.

Use the following income statement to calculate 1) the dividend payout ratio and 2) the retention ratio for Crown Heights Co.Income Statement (Crown Heights Co.):Sales = $62,000Costs = $47,850Taxable income = $14,150Taxes (25%) = $3,537.50Net income = $10,612.50Dividends = $4,700Addition to retained earnings = $5,912.50

Based on the following information for Northlake Tools Company, a) what growth rate can the firm maintain if no external financing is used (that is, EFN = 0)?  b) What is the sustainable growth rate?NORTHLAKE TOOLS COMPANY2024 Income Statement (in millions)Sales$5,000.0Costs4,350.0Taxable income$650.0Taxes (21%)136.5Net income$513.5Dividends256.8Addition to retained earnings256.8NORTHLAKE TOOLS COMPANY2024 Balance Sheet (in millions)AssetsLiabilities & Owners’ EquityCurrent assets$1,200.0Current liabilities$700.0Net fixed assets3,000.0Long-term debt1,500.0Total assets$4,200.0Owners’ equity2,000.0Total liab. & equity$4,200.0Solution (Percentage of Sales Approach)

Based on the following information for the Northlake Tools Company, what is EFN if sales are predicted to grow by 15 percent? Use the percentage of sales approach and assume the company is operating at full capacity. The payout ratio is constant. Use a 21 percent tax rate.NORTHLAKE TOOLS COMPANY2024 Income Statement (in millions)Sales$5,000.0Costs4,350.0Taxable income$650.0Taxes (21%)136.5Net income$513.5Dividends256.8Addition to retained earnings256.8NORTHLAKE TOOLS COMPANY2024 Balance Sheet (in millions)AssetsLiabilities & Owners’ EquityCurrent assets$1,200.0Current liabilities$700.0Net fixed assets3,000.0Long-term debt1,500.0Total assets$4,200.0Owners’ equity2,000.0Total liab. & equity$4,200.0Solution (Percentage of Sales Approach)