The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $10 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: $5.2 million with a 0.2 probability, $3.1 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.
Debt/Capital ratio is 0.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 10%, interest rate is 9%.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 50%, interest rate is 11%.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 60%, interest rate is 14%.
| RÔE = | % |
| σ = | % |
| CV = |
In: Finance
he 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, $2.9 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.
Debt/Capital ratio is 0.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 10%, interest rate is 9%.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 50%, interest rate is 11%.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 60%, interest rate is 14%.
| RÔE = | % |
| σ = | % |
| CV = |
In: Finance
FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $20 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: $4.2 million with a 0.2 probability, $3.1 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. Debt/Capital ratio is 0. RÔE = % σ = % CV = Debt/Capital ratio is 10%, interest rate is 9%. RÔE = % σ = % CV = Debt/Capital ratio is 50%, interest rate is 11%. RÔE = % σ = % CV = Debt/Capital ratio is 60%, interest rate is 14%. RÔE = % σ = % CV =
In: Finance
The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $15 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: $5.2 million with a 0.2 probability, $2.4 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.
Debt/Capital ratio is 0.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 10%, interest rate is 9%.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 50%, interest rate is 11%.
| RÔE = | % |
| σ = | % |
| CV = |
Debt/Capital ratio is 60%, interest rate is 14%.
| RÔE = | % |
| σ = | % |
| CV = |
In: Finance
A large group of mice is kept in a cage having compartments A, B, and C. Mice in compartment A move to B with probability 0.3 and to C with probability 0.4. Mice in B move to A or C with probabilities 0.35 and 0.55, respectively. Mice in C move to A or B with probabilities 0.3 and 0.2, respectively. Find the long-range prediction for the fraction of mice in each of the compartments.
The long-range prediction for the fraction of mice is___in compartment A,___in compartment B,____in compartment C, ____
In: Statistics and Probability
Function Return Value
In this program, you will be using C++ programming constructs, such as functions and loops.
main.cpp
Write a program that allows the user to enter the information for multiple packages to determine the shipping charges for each package. The program will exit when the user enters 0 or negative for the package weight.
Your program will ask the user to enter the weight of a package they want to ship. If the weight they enter is a positive number, your program will then prompt the user to enter the distance the package will be shipped. Your program will then output the shipping charges with a precision of 2 digits past the decimal point, and will prompt the user for the next package.
calculateCharge
Create a function called calculateCharge that contains 2 parameters: a double to represent the weight of the package, and an integer to represent the distance the package will be shipped. This function returns the shipping charge. See types.hpp for the function prototype for this function.
This function calculates the charge based on the package weight as well as the distance. The rates per weight are defined in types.hpp. And that rate is multiplied by how many 500 mile segments the package will be traveling. For instance, if the distance is 1-500 then the rate is multiplied by one. If the distance is 501-1000 then the rate is multiplied by two. 1001-1500, multiplied by three, and so forth.
Input Validation
Hints
Sample Output
Welcome to Fast Freight Shipping Company Enter the package weight in lbs (or 0 to exit): 0
Welcome to Fast Freight Shipping Company Enter the package weight in lbs (or 0 to exit): 33 Enter shipping distance in miles: 3 Shipping cost: $6.40 Enter the package weight in lbs (or 0 to exit): -1
Welcome to Fast Freight Shipping Company Enter the package weight in lbs (or 0 to exit): 3.4 Enter shipping distance in miles: 501 Shipping cost: $8.40 Enter the package weight in lbs (or 0 to exit): 3.4 Enter shipping distance in miles: 500 Shipping cost: $4.20 Enter the package weight in lbs (or 0 to exit): 1.1 Enter shipping distance in miles: 1100 Shipping cost: $9.30 Enter the package weight in lbs (or 0 to exit): 1.1 Enter shipping distance in miles: 1 Shipping cost: $3.10 Enter the package weight in lbs (or 0 to exit): 0
Here is is the information on the types.hpp file to be used:
//-----------
// Constants
//-----------
// shipping distance per segment
const int SEGMENT_MILES = 500;
// rates per 500 miles shipped
const double RATE1 = 3.10; // pkgs weighing <= 2 lb
const double RATE2 = 4.20; // pkgs > 2 lb but <= 6 lb
const double RATE3 = 5.30; // pkgs > 6 lb but <= 10 lb
const double RATE4 = 6.40; // pkgs > 10 lb
//---------------------
// Function prototypes
//---------------------
// This function receives a package weight in lbs and
// a shipping distance in miles. It uses these to compute
// and return the shipping charge.
double calculateCharge(double weight, int distance);
In: Computer Science
we have been using and use the P-VALUE METHOD to make your decision. For confidence intervals, there are not specific steps, but there is a specific Excel tool for each interval. They should not be done by-hand for this set, nor should you simply use Excel formulas to use it as a calculator. Treat each question as a separate problem -- we use the same data set but are answering different “research questions”.
Many parts of cars are mechanically tested to be certain that they do not fail prematurely. In an experiment to determine which one of two types of metal alloy produces superior door hinges, 40 of each type were tested until they failed. Car manufacturers consider any hinge that does not survive 1 million openings and closings to be a failure. The number of openings and closings as observed and recorded in the accompanying table (to the closest 0.1 million). A statistician has determined that the number of openings and closings is normally distributed.
NOTE: use ONLY the P-value method for hypothesis tests. If you include both rules in step 4 or include both in your decision step, I will have to conclude that you do not yet understand the p-value rule.
Number of Openings and Closings
|
Alloy 1 |
Alloy 2 |
||||||
|
1.5 |
1.5 |
0.9 |
1.3 |
1.4 |
0.9 |
1.3 |
0.8 |
|
1.8 |
1.6 |
1.3 |
1.5 |
1.3 |
1.3 |
0.9 |
1.4 |
|
1.6 |
1.2 |
1.2 |
1.8 |
0.7 |
1.2 |
1.1 |
0.9 |
|
1.3 |
0.9 |
1.5 |
1.6 |
1.2 |
0.8 |
1.2 |
1.1 |
|
1.2 |
1.3 |
1.4 |
1.4 |
0.8 |
0.7 |
1.1 |
1.4 |
|
1.1 |
1.5 |
1.1 |
1.5 |
1.1 |
1.4 |
0.8 |
0.8 |
|
1.3 |
0.8 |
0.8 |
1.1 |
1.3 |
1.1 |
1.5 |
0.9 |
|
1.1 |
1.6 |
1.6 |
1.3 |
1.4 |
1.2 |
1.3 |
1.6 |
|
0.9 |
1.4 |
1.7 |
0.9 |
0.6 |
0.9 |
1.8 |
1.4 |
|
1.1 |
1.3 |
1.9 |
1.3 |
1.5 |
0.8 |
1.6 |
1.3 |
Do the data provide enough evidence to allow us to infer at the 5% significance level that hinges made with Alloy 1 last longer than hinges made with Alloy 2?
In: Statistics and Probability
PLEASE USE PYTHON CODE
Compute the zero of the function y(x) from the following data:
x = 0.2, 0.4, 0.6, 0.8, 1.0
y = 1.150, 0.855, 0.377, -0.266, -1.049
Use inverse interpolation with the natural cubic spline
In: Computer Science
In: Statistics and Probability
Suppose you are in the market to purchase a used car. To make an informed decision regarding your purchase, you would like to collect as much information as possible. Among the information you might consider are the typical price of the car, the typical number of miles the car should have, and its crash test results, insurance costs, and expected repair costs.
Make a list of at least three cars that you would consider purchasing. To be fair, the cars should be in the same class (compact, midsize, etc). They should also be of the same age.
Collect information regarding the three cars in your list by finding at eight cars of each that are for sale. Obtain such information as the asking price and the number of miles the car has. Sources of data include your local newspaper, classified ads, and car websites (www.cars.com and www.vehix.com). Compute the summary statistics for asking price, number of miles, and other variables of interest. Remember, the summary statistics include min, max, mean, median, mode, range, variance, standard deviation, and so on.
Write a report (4 paragraphs) in Microsoft Word with supporting data supporting your conclusion regarding which car you would purchase and why.
Attach the Excel sheet used for the primary data source.
You’ll submit both the Word document and Excel file.
In: Statistics and Probability