On January 2, 2002, Heather Ltd. signed a ten-year noncancelable lease for a passenger ferry. The lease stipulated annual payments of $68,353 starting at the end of the first year, with title passing to
Heather at the expiration of the lease. Heather treated this transaction as a capital lease.
The ferry has an estimated useful life of 15 years, with no residual value. Heather uses straight-line amortization for all of its capital assets. Aggregate lease payments were determined to have a present value of $420,000, based on implicit interest of 10%.
In its 2002 income statement, what amount of interest expense should Heather report from this lease transaction?

Which of the following conditions exist in long-run competitive equilibrium?
I). P = LRAC
II). Individual firms operate at the most efficient scale of plant.
III). The level of output produced coincides with the minimum point on the LRAC curve.

As a portfolio manager, you are comparing the yields on investment grade 10-year corporate bonds and the 10-year on-the-run Treasury. You notice that a bond issued by Ink, Inc. has a yield of 7.8% while the Treasury yields 6.02%. Calculate the yield ratio.

A consumer group wants to prove that the average hospital costs are more than $931 per day. The group randomly samples 60 accounts and finds a sample mean of $950. The hypothesis test at an a-level of 5% and assumes a o of $50. With a test value of 2.94 standard deviations and a critical value of 1.645, the decision should be _______.

An analyst makes the following estimates about an income-producing property.
Annual gross potential rental income = $800,000 Annual property operating expenses = 200,000 Annual vacancy and collection losses = 125,000 Capitalization rate = 10% Expected rate of inflation = 4%
Using the direct capitalization approach, the property's estimated market value would be: