The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $14 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 40%. The CFO has estimated next year's EBIT for three possible states of the world: $4.9 million with a 0.2 probability, $2.5 million with a 0.5 probability, and $0.7 million with a 0.3 probability. Calculate Neal's expected ROE, standard deviation, and coefficient of variation for each of the following debt-to-capital ratios. Do not round intermediate calculations. Round your answers to two decimal places at the end of the calculations.

1) Debt/Capital ratio is 0.

2)Debt/Capital ratio is 10%, interest rate is 9%.

3) Debt/Capital ratio is 50%, interest rate is 11%.

4) Debt/Capital ratio is 60%, interest rate is 14%.

A 4.5m4.5m foundation carries a load of 3000 kN. The foundation rests at a depth of 1.5m
below the ground surface. The bearing soil is an extended sand with a saturated unit weight
(γsat) of 19 kN/m3
, modulus of elasticity (E) of 35 MPa, and Poisson’s ratio (µ) of 0.3. The
water level coincides with the ground surface.
a) Determine the effective vertical stresses (σ̍v) for points underneath the corner and
center of the foundation and located at a depth of 6.0 m from the ground surface.
Note: for estimating Δσ̍v (i.e., the additional vertical stresses), use both of the
influence coefficient and approximate methods. Comment on your results.
b) If we consider this foundation as a rigid element, what would be its uniform
settlement under the given load? Is it safe (and why)?
c) Calculate the time-dependent maximum, minimum, and differential settlements of the
foundation if sand is interrupted by a 2m-thick clay layer that starts at a depth of 5m
below the ground surface. Is it safe (and why)?
Note: For the clay, take Cc = 0.2 and e = 0.7.

Below is a set of data collected

at 0.95 atm

for the formation of CO

2

gas produced when calcium

carbonate is reacted with aqueous HCl:

Time (min)

Volume CO

2

(mL)

1

0.2

0

2

0.3

0

3

0.5

0

4

0.7

0

5

0.9

0

6

1

.00

7

1.2

0

8

1.3

0

9

1.5

0

10

1.7

0

11

1.9

0

12

2

.00

13

2.2

0

14

2.4

0

15

2.5

0

16

2.7

0

17

2.9

0

18

3

.00

19

3.2

0

20

3.4

0

Your assignment is as follows:

1. Create a spreadsheet in Excel (or equivalent) that

contains this data and does the following

calculations

automatically:

a. Converts each gas volume measurement to

moles of CO

2

produced

(Use a

PV = nRT to

solve

). Do this twice: one column for 0

1. An insurance company is planning to launch three life insurance policies namely: Standards (s), Preferred (p) and Ultra- Preferred (u). The Manager presents the following information with four scenarios of selling prices and the future profits for each product under the four scenarios:

What would be the managers decisions based on

1. Mamimin criterion selling price of K5
2. Maximax Criterion selling price of k2

Minimax regret criterion

1. Here is some information on tomato weights W gathered separately on all of the fertilized tomato plots (F=1) and unfertilized (F=0) plots for studying the effect of fertilizer.

Suppose there are 20 fertilized tomato plots and 20 unfertilized tomato plots in the field,

1. (1 point) what is the expected average tomato weight of the whole field?
2. (1 point) Compare the yield of tomato plots based on mean, variance and skewness and give a brief interpretation of the results.

a. Expected Return: Discrete Distribution

A stock's return has the following distribution:

Calculate the standard deviation. Round your answer to nearest two decimal places.

b. The market and Stock J have the following probability distributions:

Calculate the standard deviation for the market and Stock J. Round your answer to nearest two decimal places.

Part A:  The number of cars arriving at a self-service gasoline station during the last 50 hours of operation are as follows:

The following random numbers have been generated: 44, 30, 26, 09, 49, 13, 33, 89, 13, 37. Simulate 10 hours of arrivals at this station. What is the average number of arrivals during this period?

Part B:  The time between arrivals at a drive-through window of a fast-food restaurant follows the distribution given below. The service time distribution is also given in the table in the right column. Use the random numbers provided to simulate the activity of the first five arrivals. Assume that the window opens at 11:00 a.m. and the first arrival is after this, based on the first interarrival time generated.

Random numbers for arrivals: 14, 74, 27, 03

Random numbers for service times: 88, 32, 36, 24

What time does the fourth customer leave the system?

a) Use XLSTAT to compute a 95% confidence interval for the average percent audited of districts with an average adjusted gross income of $35,000. Interpret the interval in the context of the application.

b) Use XLSTAT to compute a 95% prediction interval for the percent audited of an individual district with an average adjusted gross income of $35,000. Interpret the interval in the context of the application.

c) Use the regression output in XLSTAT to calculate the coefficient of determination, r2r2 from the sum of squares due to regression (SSR) and the total sum of squares (SST). Interpret your calculated value of r2r2 in the context of the application.

a) Use XLSTAT to compute a 95% confidence interval for the average percent audited of districts with an average adjusted gross income of $35,000. Interpret the interval in the context of the application.

b) Use XLSTAT to compute a 95% prediction interval for the percent audited of an individual district with an average adjusted gross income of $35,000. Interpret the interval in the context of the application.

c) Use the regression output in XLSTAT to calculate the coefficient of determination, r2r2 from the sum of squares due to regression (SSR) and the total sum of squares (SST). Interpret your calculated value of r2r2 in the context of the application.