1. XYZ Manufacturing Company buys 50 tons of coal per month. The price of 50 tons...

1. XYZ Manufacturing Company buys 50 tons of coal per month. The price of 50 tons of coal can vary from month to month according to the table shown below:

Price of 50 Tons of Coal	Probability
$1500	0.20
$2000	0.50
$2500	0.30

How much should XYZ budget for coal in 2020? Your answer should be an integer.

2.

Replacement times for computer displays players are normally distributed with a mean of 7.1 years and a standard deviation of 1.4 years.

If you want to provide a warranty so that only 2% of the computer displays will be replaced before the warranty expires, what is the time length of the warranty? Include 1 decimal place in your answer.

3. The amount of time a person waits for an elevator in a building is known to follow a uniform distribution between 0 and 60 seconds. What is the expected value of the wait time for an elevator? Your answer should be an integer. What is the probability that a person will wait between 20 and 35 seconds? Include 2 decimal laces in your answer.

Expert Solution

2)

µ=   7.1
σ =    1.4
proportion=   0.9800

Z value at    0.98   =   2.054   (excel formula =NORMSINV(   0.98   ) )
z=(x-µ)/σ
so, X=zσ+µ=   2.054   *   1.4   +   7.1
X   = 10.0 years (answer)

3)it is uniform distribution

here a=   0
b=   60

a) expected value of the wait time for an elevator=mean = (a+b)/2 = 30 seconds

b) P ( 20 ≤ X ≤ 35 ) =(x2-x1)/(b-a) = (35-20)/60-0)= 0.25 seconds

orchestra answered 1 year ago

The current price of the shares of Company XYZ is $50. There are N = 1...

The current price of the shares of Company XYZ is $50. There are N = 1 million shares outstanding. Next year’s (year 1) earnings and dividends per share are $4 and $2, respectively. Investors expected perpetual dividend growth at g = 8% per year. The expected rate of return demanded by investors is r=12%. Suppose that the company announces that it will increase its dividend from $2 per share to $4 per share next year （year1）, and the extra cash...

A coal fired plant burns 1000 metric tons of coal per day at 2% sulfur. (...

A coal fired plant burns 1000 metric tons of coal per day at 2% sulfur. ( 1 metric ton = 1000 kg). a. What is the SO2 emission rate? b. What is the SO2 concentration 1.0 km downwind (x = 1000m)? c. 0.1 km off centerline in y direction (y = 100m)? and d. At ground level (z = 0) wind speed is 4 m/s and it’s a cloudy day? Stability =D; σy = 68m; σz = 37m

The current (year 0) price of the shares of Company XYZ is $50. There are 1...

The current (year 0) price of the shares of Company XYZ is $50. There are 1 million shares outstanding. Next year (year 1)’s dividend per share is $2, which represents a 60% payout from earnings (net income). Investors expect a ROE of 20%, and a constant growth. (12 points) What will be the dividend per share in year 2 and year 3? (2 points) What is the current market value of the firm? (1 point) What will be the value...

A typical coal-fired electric generating plant will burn about 3 metric tons of coal per hour....

A typical coal-fired electric generating plant will burn about 3 metric tons of coal per hour. Most of the coal burned in the United States contains 1 to 4 % by weight sulfur in the form of pyrite, which is oxidized as the coal burns: 4FeS2(s) + 11 O2(g) = 2 Fe2O3(s) + 8 SO2(g) Once in the atmosphere, the SO2 is oxidized to SO3, which then reacts with water in the atmosphere to form sulfuric acid: SO3(g) + H2O(l)...

The current price of XYZ stock is $50, and two-month European call options with a strike...

The current price of XYZ stock is $50, and two-month European call options with a strike price of $51 currently sell for $10. As a financial analyst at Merrill Lynch, you are considering two trading strategies regarding stocks and options. Strategy A involves buying 100 shares and Strategy B includes buying 500 call options. Both strategies involve an investment of $5,000. a. How much is the profit (loss) for strategy A if the stock closes at $65? (sample answer: $100.25...

Engle Manufacturing Company established the following standard price and cost information: sales price $50 per unit...

Engle Manufacturing Company established the following standard price and cost information: sales price $50 per unit variable Manufacturing cost 32 per unit fixed manufacturing cost $100,000 total fixed selling and administrative cost $40,000 tota Engle expected to produce and sell 15,000 units. Actual production and sales amounted to 16,000 units. Required: (a) Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost. (b) Classify the...

2.A. The current market price for XYZ is $48 per share. Initial margin is 50%, maintenance...

2.A. The current market price for XYZ is $48 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.50% per year. XYZ pays annual cash dividends of $2.25 per share. 2.A.1) You believe the stock price will increase over the next year and wish to trade exactly one round lot. What trade should you make (2 points)? How much margin would you have to post to your account (4 points)? At what price would you...

Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can...

Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can produce 25 tons of fish or 20 tons of rice per month. a) Assuming both countries are using the same amount of capital and labor, which country has the absolute advantage in producing fish? In producing rice? b) What is the opportunity cost of producing one ton of fish for Malaysia? For Thailand? Show work. c) What is the opportunity cost of producing one...

Consider two cities, each of which initially experiences 100 tons of pollution per day (50 tons...

Consider two cities, each of which initially experiences 100 tons of pollution per day (50 tons from each polluting firm). City T imposes a pollution tax, resulting in an overall pollution reduction of 20 percent and a decrease in equilibrium employment. City U implements a uniform-reduction policy under which each firm cuts its pollution by 20 percent. Which city will experience a larger reduction in equilibrium employment? Illustrate.

a) The price company A’s stock is $50 and the price of its 3-month European call...

a) The price company A’s stock is $50 and the price of its 3-month European call option on the stock with a strike price of $52 is $2. Draw the payoff graph for the option buyer. b)The risk-free rate is 4% (compounded quarterly). The 3-month European put option with a strike price of $52 is sold for $3. The stock pays a quarterly dividend of $0.5. Given the call option information in a), describe the arbitrage strategy and calculate the...

Question