Questions
Consider the following stock price and shares outstanding information. Consider the following stock price and shares...

Consider the following stock price and shares outstanding information.

Consider the following stock price and shares outstanding information.

DECEMBER 31, Year 1 DECEMBER 31, Year 2

Price
Shares
Outstanding

Price
Shares
Outstanding
Stock K $19 100,000,000 $28 100,000,000
Stock M 76 2,400,000 40 4,800,000a
Stock R 44 25,000,000 49 25,000,000
aStock split two-for-one during the year.
  1. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places.

              PWIYear 1:

              PWIYear 2:

              VWIYear 1:

              VWIYear 2:

  2. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.

    Percentage change in PWI:   %

    Percentage change in VWI:   %

  3. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.

      %

In: Finance

1.When probabilities are assigned based on the assumption that all the possible outcomes are equally likely,...

1.When probabilities are assigned based on the assumption that all the possible outcomes are equally likely, the method used to assign the probabilities is called the

A.conditional method B.relative frequency method C.subjective method D.Venn diagram method E.classical method

2.You study the number of cups of coffee consumer per day by students and discover that it follows a discrete uniform probability distribution with possible values for x of 0, 1, 2 and 3. What is the standard deviation of the random variable x? (You can round your final answer to two decimals, but do not do any rounding when you are doing the intermediate calculations.)

3. The number of gallons of gasoline sold at your gas station on any one day has a (continuous) uniform distribution with a minimum of 500 and a maximum of 1500. What is the probability that you will sell more than 1300 gallons of gasoline on any particular day? You may round your answer to two decimal places.

4. Assume that the mean debt for credit cards at your bank is $12,000. The population standard deviation is $4000 and the debt amounts have a normal distribution. What is the probability that the debt for one of your credit card holders is between $10,000 and $15,000? You should provide four numbers past the decimal point in your answer.

5. You run an experiment where you weigh shipments of boxes from a warehouse. The random variable, x, is the number of pounds in the shipment. Identify the possible values that the random variable can assume. Give your answer as a mathematical expression based on x.

6. A florist looks at his sales and discovers that the probability that a randomly selected flower sold is a rose is 0.40. The probability that a randomly selected flower sold is white is 0.10. The probability that a randomly selected flower sold is a white rose is 0.03. Given that a randomly selected flower sold is white, what is the probability that it is also a rose? You can round your answer to two decimal places.

7. Based on historical statistics, a climatologist has determined that the probability of rain on Feb. 1 in San Francisco is 0.4. Use the normal approximate to the binomial to calculate the probability that it will rain in San Francisco on exactly 40 of the next 100 Feb. 1 dates. Round your answer to four decimal places.

8. Customers arrive at your store based on a Poisson process with a mean of 4 arrivals per hour.It is currently 3:00 pm and the last customer came in at 2:15 pm.What is the probability that no new customers will arrive before 3:15 pm? Include 4 places past the decimal in your answer.

9. I flip three fair coins, each with a 50-50 probability of getting heads or tails. I do not show you the results, but I tell you that at least one of the three coins shows heads. Given this information, calculate the conditional probability that exactly two of the three coins show heads.You can round your answer to two decimal places.

10. A deck of 52 playing cards consists of four suits, each with thirteen cards.In the game called bridge, a hand consists of thirteen cards selected randomly without replacement.What is the probability that a bridge hand will have exactly 7 cards in the same suit?Round your answer to three decimal places.

I need help with questions 1-10 please!!!


In: Statistics and Probability

2. APGAR scores are assigned to newborns between one and five minutes after birth and indicate...

2. APGAR scores are assigned to newborns between one and five minutes after birth and indicate the general state of the wellbeing of the baby. Scores of seven to ten are typical and indicate that the baby requires only routine post-natal care. Scores of four to six indicate that the baby may require assistance while scores of three or less indicate that the baby requires immediate assistance if life is to be sustained. Suppose a study is conducted to determine the consistency of APGAR scores and NNIT scores, which has the same scale and also indicates needed level of post-natal care but is set to come out next year. To this end, each baby has their current APGAR score and a NNIT score (table below). Use the following data to answer the below questions.

  1. Calculate and interpret the Pearson correlation coefficient between APGAR and NNIT scores.
  2. Please test if the correlation coefficient is different from zero.

Baby ID

APGAR score

NNIT score

1

9

7

2

8

9

3

7

8

4

8

8

5

6

7

6

4

4

7

9

8

8

7

7

9

2

3

10

8

6

11

7

8

12

5

5

13

6

9

14

4

5

In: Statistics and Probability

McCormick & Company is considering a project that requires an initial investment of $24 million to...

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500 thousand. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax). To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

9. Find the IRR

In: Finance

Details of McCormick Plant Proposal McCormick & Company is considering a project that requires an initial...

Details of McCormick Plant Proposal McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax). To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent. Should the project be accepted?

In: Finance

McCormick & Company is considering a project that requires an initial investment of $24 million to...

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million.

The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax).

To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

Find the NPV using the after-tax WACC as the discount rate.

In: Finance

McCormick & Company is considering a project that requires an initial investment of $24 million to...

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax). To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent. Should the project be accepted? question: . Find the IRR.

In: Finance

A company attempts to evaluate the potential for a new bonus plan by selecting a sample...

A company attempts to evaluate the potential for a new bonus plan by selecting a sample of 4 salespersons to use the bonus plan for a trial period. The weekly sales volume before and after implementing the bonus plan is shown below. (For the following matched samples, let the difference "d" be d = after - before.)

Weekly Sales

Salesperson

Before

After

1

48

44

2

48

40

3

38

36

4

44

50

a. State the hypotheses.
b. Compute the test statistic.
c. Use Alpha = .05 and test to see if the bonus plan will result in an increase in the mean weekly sales.

In: Statistics and Probability

A company attempts to evaluate the potential for a new bonus plan by selecting a sample...

A company attempts to evaluate the potential for a new bonus plan by selecting a sample of 4 salespersons to use the bonus plan for a trial period. The weekly sales volume before and after implementing the bonus plan is shown below. (For the following matched samples, let the difference "d" be d = after - before.)

Weekly Sales

Salesperson

Before

After

1

48

44

2

48

40

3

38

36

4

44

50

a. State the hypotheses.
b. Compute the test statistic.
c. Use Alpha = .05 and test to see if the bonus plan will result in an increase in the mean weekly sales.

In: Statistics and Probability

You are examining two stock options of equal cost. Stock for Green Industries rises 6% of...

You are examining two stock options of equal cost. Stock for Green Industries rises 6% of the time by $3, 7% of the time drops by $2, otherwise has no change. Stock for Purple Corp. loses $5 4% of the time, gains $3 8% of the time, otherwise has no change. Calculate the expected value, variance, and standard deviation. Last decide which is the better stock to invest in using the data you calculated and explain your choice.

In: Statistics and Probability