Year   Percentage
2000   28
2001   32
2002   36
2003   40
2004   44
2005   51
2006   53
2007   57
2008   60
2009   66

Forecast the percentage of tax returns that will be electronically filed for 2010 using exponential smoothing with trend adjustment.

alpha= 0.3 and beta= 0.4. Then calculate MAD.

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Quarter   Price
Q1 2017   186.3
Q2 2017   190.9
Q3 2017   195.2
Q4 2017   195.2
Q1 2018   198.7
Q2 2018   201.2

Forecast the price index for Q3 2018 using a​ three-period simple moving average. Then calculate MAD.

A relatively new firm has the dividend payment history. Suppose this stock sells for $8 per share. Estimate the shareholders' required rate of return using the dividend discount model with the following:

A. The dividend growth rate calculated over the firm's entire history.

B. The growth rate calculated over the actual dividend paying history only.

C. Why are the two answers different? Which do you think is most meaningful?

Table 9-10

Year dividends

2000 0

2001 0

2002 0

2003 0

2004 .10

2005 .13

2006 .15

2007 .18

Do new entrants and employees affect the Healthcare industry for the years 2000-2018?

Dependent variable - industry's revenue

Independent variable - the number of new entrants and employees + omitted variables

Using the above table create:

- Hypothesis testing

- P-value

- T-test

- Level of significance

- Scatter Plot

- Regression analysis

1.) What are the four basic areas of Finance Study?

a.) Corporate, Investments, Institutions, and Personal

b.) Personal, Taxes, Stocks, and Interest Rates

c.) Corporate, Personal, Taxes, and Insurance

d.) Capital Budgeting, Structure, Leverage, and Working Capital

2.) Shares of a company's stock can be traded by any member if the public are said to be publicly traded. Shares of a company's stock that are not publicly traded are considered to be:

a.) closely held

b.) risk free

c.) a good buy

d.) bonds

3.) What is a company's effective tax rate?

a.) total tax dollars owed for the current year

b.) the tax rate paid on the company's first income bracket

c.) the tax rate applied to the company's next dollar income

d.) the average rate of tax which a company pays as determined by dividing its tax liability by taxable income

1) All of the following are “red flags” when analyzing the quality of a company’s earnings except for:

2) What of the following data are important when analyzing a company?

(1) Income statement

(2) Balance sheet

(3) Statement of cash flows

(4) Footnotes to the financial statements

3) The ABC Corporation achieved annual net profit margins of 3.5% in 2005, 3.75% in 2006, and 4.2% in 2007. Which of the following statements is incorrect?

Using the Altman’s Original Z-Score Model, if the calculated Z-score for a publicly traded company is 1.57, what can you conclude?

For the following problems, use this information from Thompson Corporation’s annual reports:

These data are included in the file Thompson Data Spring 2019

1. Compute a simple index for the revenue each year of Thompson. Use 2003 as the base period. (4 pts)
2. Compute a simple index for the revenue each year of Thompson using the period 2003–05 as the base. (4 pts)
3. What can you conclude about the change in revenue over this time period? (2 pts.)
4. Compute a simple index for the number of employees each year for Thompson. Use 2003 as the base period. (4 pts)
5. Compute a simple index for the number of employees each year for Thompson using the period 2003–05 as the base. (4 pts)
6. What can you conclude about the change in the number of employees over the period? (2 pts)