The Wong Company produces and sells a product for which variable costs are $1.50 per unit. Annual fixed costs are $60,000, and annual capacity is 40,000 units. The company presently sells 30,000 units at $6 per unit. The company receives an order to produce and sell 10,000 units for which the buyer will pay $22,500. a. What will be the company's net income if it does not accept the order? b. What will its net income be if it decides to accept the order?

a. You are thinking about investing your money in the stock market. You have thefollowing two stocks in mind: stock A and stock B. You know that the economycan either go in recession or it will boom. Being an optimistic investor, youbelieve the likelihood of observing an economic boom is two times as high asobserving an economic depression. You also know the following about your twostocks: i. Calculate the expected return for stock A and stock B. ii. Calculate the total risk (variance and standard deviation) for stock A and for stock b. A portfolio consists of the following assets with associated betas:

a. A finance manager plays a key role in the organization. Explain any four functions of a financial manager to support the statement.(12 marks) b. Wealth management is a more reasonable argument for financial management than profit maximization. Discuss.(8 marks)

4- (15 pts.) A midsize corporation is considering purchase of Cyber Li- ability Insurance Policy. The following table provides the probability distribution of yearly cost coverage associated with different level of Cyber Security IT network interruptions for this corporation.

Required a. Develop a monthly plan that indicates the number of customers Maria should call on in each clas- sification to maximize her monthly sales commissions. b. Determine the monthly commissions Maria will earn if she implements this plan. c. Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely

The following information is available for two firms, Cheetah Limited and Lion Limited. a. Calculate the market values of equity, debt and firm for both Cheetah Limited and Lion Limited.(8 marks) b. What is the Weighted Average Cost of Capital (WACC) for each of the two firms? c. What happens to the average cost of Cheetah Limited if it employs $30 million of debt to finance a project that yields an operating income of $4 million? (8 marks) d. What are the likely implications for the cost of equity, and thus the WACC, if the debt increases significantly such that the long-term gearing changes? (2 marks)