A pharmaceutical company claims that its new drug reduces systolic blood pressure. The systolic blood pressure (in millimeters of mercury) for nine patients before taking the new drug and 2 hours after taking the drug are shown in the table below. Using this data, find the 99% confidence interval for the true difference in blood pressure for each patient after taking the new drug. Assume that the blood pressures are normally distributed for the population of patients both before and after taking the new drug. Patient 1 2 3 4 5 6 7 8 9 Blood pressure (before) 187 186 176 203 182 168 199 167 204 Blood pressure (after) 178 166 158 187 157 159 192 148 196 Step 1 of 4 : Find the point estimate for the population mean of the paired differences. Let x1 be the blood pressure before taking the new drug and x2 be the blood pressure after taking the new drug and use the formula d=x2−x1 to calculate the paired differences. Round your answer to one decimal place.

Suppose that Firm D and Firm G both generate the same after‐tax return of 20%. Shares of firm G currently trade at $10 per share. Firm G does not pay a dividend. Firm D pays a dividend of $1.50 per share in one year. Both firms are identical except for their payout policies. Capital gains are taxed at 15%, and dividends are taxed at 25%. Assume that you can apply capital losses against future capital gains. ​

a) Calculate the price of firm G in one year. Explain your reasoning.

b) Calculate the before‐tax and after‐tax dollar return to owning firm G for one year.

c) Calculate the before‐tax and after‐tax percentage return to owning firm G for one year.

d) Calculate the price of firm D in one year.

e) Calculate the price of firm D today.

f) Calculate the before‐tax and after‐tax dollar return to owning firm D for one year.

g) Calculate the before‐tax and after‐tax percentage return to owning firm D for one year.

1. In a study examining whether taking a statistics course influences students’ reasoning skill, a researcher first gave a reasoning task to 5 students who have never taken a statistics course, and then the students took a brief statistics lecture which lasted 3 hours. After the lecture, the same five students took the reasoning task again. Their performance scores are summarized in the table below.

Perform an appropriate statistical test and provide your conclusion on whether or not their reasoning performance are different before and after taking the STATS lecture.

2. In the above (#9), the same 5 students took the test twice, before and after the lecture. Reanalyze the above data as the data obtained from two sets of independent samples. Now please perform an appropriate statistical test to compare the means, pretending that two different (independent) groups of five people took the same test, one before and one after the lecture.

ABC Ltd is a software producing entity, it recorded a software license in its books $5.65 million on 1 January 2017, it represented the development cost of software owned by it and generated revenue correspondingly. The price $3.5 million offered by interested buyer of the license is regarded as valid market price. Owing to the loss of customers and upgrading the software, it needs to prepare the cash flow projection for the software license in coming 4 years and calculate the recoverable amount at discount rate of 8%, the forecasted net cash inflows for the year ended 31 December 2017 up to 31 December 2020 were formulated as follows:

2

Question 1 part b (continued)

Year 2017 2018 2019 2020

Net cash inflow (in $000) 250
750
1,500
1,750

The expected disposal value of the software license is $800,000 as at 31 December 2020

Required
With reference to above information, determine whether the impairment losses were required to the software license on 1 January 2017 in accordance with HKAS 36. Prepare relevant journal entries if necessary.

Part c

GHI Ltd owned a building worth $1,386,000 purchased at 1 January 2016, estimated useful life for 30 years, and using straight line method for depreciation. After the usage of 4 years, at the beginning of 1 January 2020, GHI Ltd re-assessed the useful life of the building, after the professional valuer advise, the remaining useful life available should be 48 years.

Required
Calculate the depreciation expenses of above building as at 31 December 2020 and show the relevant journal entry. All workings must be shown

Forward contracts and futures contracts have similar functions and different features. Among those features are the fact that while forward contracts are closed out by specific performance, futures contracts are almost never closed out that way. Why not? Since the contracts are closed out in different ways, it is implied that the parties to these contracts have different goals. What types of entities get involved in each? How might their goals differ?

On January 1, 2020, Agent Z Company entered into a lease with Overlord Company for a new equipment.
The lease stipulates that annual payments of P1,000,000 will be made for five years starting December
31, 2020.
Agent Z Company guaranteed a residual value of P474,060 at the end of the 5-year period. The
equipment will revert to the lessor at the lease expiration. The implicit rate for the lease is 16% after
considering the guaranteed residual value. The economic life of the equipment is 10 years.
Questions:
1. How much is right-of-use asset account on January 1, 2020?
2. The carrying amount of lease liability on December 31, 2021 is
3. What is the carrying amount of right-of-use asset on December 31, 2022?
4. How much is the gain or loss on finance lease to be recognized at the end of the lease term?

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines:

After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $650 million.
The depreciation expense for 2020 is expected to be $110 million.
The capital expenditures for 2020 are expected to be $375 million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 6% per year.
The required return on equity is 13%.
The WACC is 12%.
The firm has $210 million of non-operating assets.
The market value of the company's debt is $3.940 billion.
180 million shares of stock are outstanding.

Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.

$  

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines:

After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $600 million.
The depreciation expense for 2020 is expected to be $70 million.
The capital expenditures for 2020 are expected to be $200 million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 7% per year.
The required return on equity is 13%.
The WACC is 11%.
The firm has $193 million of non-operating assets.
The market value of the company's debt is $3.690 billion.
90 million shares of stock are outstanding.

Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.

you manage a portfolio that receives dividends and makes payments in irregular intervals during the year. You begin on January 1 2020 with KES 10,000,000 in the portfolio. You invest it at a daily rate of 0.03%. On January 17, you receive a dividend of KES 500,000 on and on January 24, you make a payment of KES 250,000. Assume that the daily rate of 0.03% is constant throughout the month of January 2020.

Now answer the questions that follow

1) What is the ending value of the portfolio on January 31?

write to the nearest one e.g. 574203

2What is the geometric mean return for the month of January 2020? Write as a % to 2 d.p. e.g 10.92.

Don't include the % sign!

3)What is the value of the portfolio after 17 days? Answer to the nearest one