Interpreting stock quotes

Assume that the following quote for the Walt Disney Company, a NYSE stock, appeared on May 1, 2015 (Friday) on Yahoo! Finance ( http://finance.yahoo.com/q?s=DIS&ql=1):

The Walt Disney Company (DIS) - NYSE

110.52 ↑ 1.80(1.66%) 4:01PM EDT

Given this information, answer the following questions.

1. At what price did the stock sell at the time of the quote?
   $ _________
2. What is the stock's price/earnings ratio?
   ___________
   What does that indicate? Round your answers to the nearest whole number.
   This means that investors are willing to pay more than $ _________ for every $1 of earnings per share that the company generated last year.
   
3. What is the last price at which the stock traded on the prior trading day?
   $ ______________
   
4. What's the stock's dividend yield?
   __________%
   
5. What are the highest and lowest prices at which the stock traded during the latest 52-week period?

   Highest price	$
   Lowest price	$

6. How large is the market capitalization of the company?
   $ __________ billion

The following financial statement information is for an investor company and an investee company on January 1, 2013. On January 1, 2013, the investor company's common stock had a traded market value of $10.5 per share, and the investee company's common stock had a traded market value of $19 per share.

Asset acquisition (market value is different from book value)
Assume that the investor company issued 18,000 new shares of the investor company's common stock in exchange for all of the individually identifiable assets and liabilities of the investee company, in a transaction that qualifies as a business combination. The financial information presented, above, was prepared immediately before this transaction. Provide the Investor Company's balance (i.e., on the investor's books, before consolidation) for "Goodwill" immediately following the acquisition of the investee's net assets:

Gulf Delivery Service, Inc. completed the following transactions during January, 2018:

1Shareholders invested in the business $25,000 cash and a delivery truck valued at $35,000 in exchange for common stock.

2.Purchased supplies for $1,000 cash.

3.Paid $2,400 for a one-year insurance policy, effective January1.

3.Performed delivery services for a customer and received $2,500 cash.

4.Completed a large delivery job for a customer on account for $8,000.

5.Paid $6,000 for employee salaries.

6.Performed delivery services for customers and received $55,000 cash.

7.Collected $4,000 in advance for delivery service to be performed later.

8.Collected $3,000 cash from a customer on account.

9.Purchased fuel for the truck , paying $1,500 with a company credit card (Credit accounts payable).

10.Performed delivery services on account, $4,500.

11.Paid office rent $2,500.

12.Paid $500 for accounts payable.

13.Paid cash dividends of $10,000.

a.

Record each transaction in the journal. Key each transaction by its letter (Explanations are not required).

b.Post the transactions that you recorded in requirement 1 to the ledger accounts using T-accounts. The ledger for Gulf Delivery Service contains the following accounts:

Cash                                                    Service revenue

Accounts receivable                            Salaries expense

Supplies                                               Depreciation expense

Prepaid insurance                                Insurance expense

Delivery truck                                     Fuel expense

Accumulated depreciation                  rent expense

Accounts payable                                supplies expense

Salaries payable                                              

Unearned service revenue

Common stock

Retained earnings

Dividends

Income summary

A manager for an insurance company believes that customers have the following preferences for life insurance products: 20% prefer Whole Life, 20% prefer Universal Life, and 60% prefer Life Annuities. The results of a survey of 200 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data?

1. State the null and alternative hypothesis.

2. Determine which distribution to use for the test statistic and state the level of significance.

3. Gather data and calculate the necessary sample statistics.

4. Draw a conclusion and interpret the decision.

Use the simple exchange-rate model (supply and demand model for foreign exchange market) to answer the following questions.

2.1. Assume an initial equilibrium level for price and quantity in the US versus China exchange rate market. Plot the exchange rate of US dollars per Chinese yuan versus the quantity of Chinese yuans traded. Then graphically simulate the impact of an increase in tariffs imposed by the US on Chinese goods and indicate your forecast for the potential changes in the exchange rate and quantity of Chinese yuans traded.

2.2. Assume an initial equilibrium level for price and quantity in the US versus Mexico exchange rate market. Plot the exchange rate of US dollars per Mexican peso versus the quantity of pesos traded. Then graphically simulate the impact of an increase in Mexico’s productivity relatively to the US, and indicate your forecast for the potential changes in the exchange rate and quantity of pesos traded.

The cellular phone market is a huge market, but it's a new one. For the time being, there are few established rules for the production and advertisement of cell phones. ClairLinx Wireless, a start-up cell phone company, is trying to decide if it should market specific phone service plans to specific groups of customers. ClairLinx divides its market of potential customers into three major groups: single, working; married, working; and retired.

ClairLinx surveyed 500 potential customers (chosen at random) and asked each, "Of the following, which do you consider to be the most important feature in a cell phone service plan: free nights and weekends, free long distance and roaming, or free calls to customers with the same company?"

Each of the 500 potential customers in the survey was categorized according to the service plan feature she considers most important and the customer group in which she appears. The data are summarized in Table 1 below. In the cells of this contingency table are three numbers: the first number is the observed cell frequency (fO); the second number is the expected cell frequency (fE) under the assumption that the two variables type of potential customer and choice of service plan feature are not related; and the third number is the value

(Observed Cell Frequency-Expected Cell Frequency)^2/Expected Cell Frequency

The numbers labeled "Total" are totals for observed frequency.

Fill in the missing values of Table 1. Round your expected frequencies to at least two decimal places, and round your (Observed Cell Frequency-Expected Cell Frequency)^2/Expected Cell Frequency values to at least three decimal places. Then, using the 0.05 level of significance, perform a test of the hypothesis that the two variables type of potential customer and choice of service plan feature are not related. Complete Table 2 based on your test.

Many small restaurants in Portland, Oregon, and other cities across the United States do not take reservations. Owners say that with smaller capacity, no-shows are costly, and they would rather have their staff focused on customer service rather than maintaining a reservation system.† However, it is important to be able to give reasonable estimates of waiting time when customers arrive and put their name on the waiting list. The file RestaurantLine contains 10 observations of number of people in line ahead of a customer (independent variable x) and actual waiting time (in minutes) (dependent variable y). The estimated regression equation is:

ŷ = 4.35 + 8.81x

and MSE = 94.42.

(a)

Develop a point estimate (in min) for a customer who arrives with four people on the wait-list. (Round your answer to two decimal places.)

ŷ^* =  min

(b)

Develop a 95% confidence interval for the mean waiting time (in min) for a customer who arrives with four customers already in line. (Round your answers to two decimal places.)

min to  min

(c)

Develop a 95% prediction interval for Roger and Sherry Davy's waiting time (in min) if there are four customers in line when they arrive. (Round your answers to two decimal places.)

min to  min

(d)

Discuss the difference between part (b) and part (c).

The prediction interval is much  ---Select--- wider narrower than the confidence interval. This is because it is  ---Select--- more less difficult to predict the waiting time for an individual customer arriving with four people in line than it is to estimate the mean waiting time for a customer arriving with four people in line.