Suneview Ltd., a listed public company with actively traded securities, issued debentures with a total term of fifteen years and a face value of $1,000 to the public exactly five years ago for $1,000 each. The debentures were issued at an annual coupon interest rate of 12% p.a. with payments annually in arrears. Interest rates for debentures of a similar risk to those of Suneview Ltd. are currently (five years after originally being issued) being traded at a premium of 3% above the government bond rate. A new series of government bonds (Series XXIV) were issued today for a ten-year term at an annual coupon interest rate of 5% p.a. (with payments annually in arrears), a face value of $1,000 and a yield to bondholders of 7% p.a. Required:

1. Assume that a further three years has elapsed since the calculations undertaken in part a) of this question (a total of eight years after the original debenture issue) and the premium on Suneview Ltd. debentures has increased to 5% above the government bond rate. No further government bonds have been issued since Series XXIV bonds which closed trading today at a yield of 9% p.a.

1. How much would you now (a total of eight years after the original debenture issue) pay for Suneview Ltd. debentures?
2. Briefly discuss the possible ‘real-world’ factors that may have caused the differences in the premium on Suneview Ltd. debentures as compared to the government bond rate (from 3% to 5%).

2. The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict credit card balance of retail banking customers in a Canadian bank. Use this data to perform a simple regression analysis between Account balance and Income (in thousands). (12 points)
   
   1. Develop a scatter diagram using Account Balance as the dependent variable y and Income as the independent variable x.
   2. Develop the estimated regression equation.
   3. Use the estimated regression equation to predict the Account Balance of a customer with Income of $58 thousands.
   4. Use the critical-value approach to perform an F test for the significance of the linear relationship between account balance and Income at the 0.05 level of significance.
   5. What percentage of the variability of Account Balance can be explained by its linear relationship with Income?
   6. Use the p-value approach to perform a t test for the significance of the linear relationship between Account Balance and Income at the 0.05 level of significance.

1. The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict credit card balance of retail banking customers in a Canadian bank. Use this data to perform a simple regression analysis between Account balance and Income (in thousands). (12 points)
2. Develop a scatter diagram using Account Balance as the dependent variable y and Income as the independent variable x.
3. Develop the estimated regression equation.
4. Use the estimated regression equation to predict the Account Balance of a customer with Income of $58 thousands.
5. Use the critical-value approach to perform an F test for the significance of the linear relationship between account balance and Income at the 0.05 level of significance.
6. What percentage of the variability of Account Balance can be explained by its linear relationship with Income?
7. Use the p-value approach to perform a t test for the significance of the linear relationship between Account Balance and Income at the 0.05 level of significance.

1. The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict credit card balance of retail banking customers in a Canadian bank. Use this data to perform a simple regression analysis between Account balance and Income (in thousands). (12 points)
   
2. Develop a scatter diagram using Account Balance as the dependent variable y and Income as the independent variable x.
3. Develop the estimated regression equation.
4. Use the estimated regression equation to predict the Account Balance of a customer with Income of $58 thousands.
5. Use the critical-value approach to perform an F test for the significance of the linear relationship between account balance and Income at the 0.05 level of significance.
6. What percentage of the variability of Account Balance can be explained by its linear relationship with Income?
7. Use the p-value approach to perform a t test for the significance of the linear relationship between Account Balance and Income at the 0.05 level of significance.

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

X Company is a service company and prepares monthly financial statements. In April, it billed customers $400,000 for services it provided; in May, it billed customers $369,000 for services it provided.

In May, the company received $282,000 from its April customers and $254,000 from its May customers.

Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?

- Income Statement, $536,000; Statement of Cash Flows, $769,000
- both statements, $254,000
- Income Statement, $369,000; Statement of Cash Flows, $536,000
- Income Statement, $769,000; Statement of Cash Flows, $536,000
- both statements, $369,000
- Income Statement, $536,000; Statement of Cash Flows, $369,000

X Company is a service company and prepares monthly financial statements. In April, it billed customers $418,000 for services it provided; in May, it billed customers $353,000 for services it provided.

In May, the company received $282,000 from its April customers and $241,000 from its May customers.

Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?

both statements, $353,000
Income Statement, $353,000; Statement of Cash Flows, $523,000
Income Statement, $523,000; Statement of Cash Flows, $771,000
both statements, $241,000
Income Statement, $771,000; Statement of Cash Flows, $523,000
Income Statement, $523,000; Statement of Cash Flows, $353,000

Watson Company has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2019.

1. Watson holds bonds issued by Fowler Corp. The bonds have an amortized cost of $600,000, and their fair value at December 31, 2019, is $700,000. Watson intends to hold the bonds until they mature on December 31, 2022.

2. Watson has invested idle cash in the equity securities of several publicly traded companies. Watson intends to sell these securities during the first quarter of 2020, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $500,000 and a fair value of $620,000 at December 31, 2019.

3. Watson has a significant ownership stake in one of the companies that supplies Watson with various components Watson uses in its products. Watson owns 5% of the common stock of the supplier, does not have any representation on the supplier’s board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier’s operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,400,000, and the fair value of the investment at December 31, 2019, is $1,800,000. Watson does not intend to sell the investment in the foreseeable future. The supplier reported net income of $200,000 for 2019 and paid no dividends.

4. Watson owns some common stock of Stein Corp. The cost basis of the investment in Stein is $300,000, and the fair value at December 31, 2019, is $250,000. Watson believes the decline in the value of its investment in Stein is other than temporary, but Watson does not intend to sell its investment in Stein in the foreseeable future.

5. Watson purchased 25% of the stock of Love Co. for $500,000. Watson has significant influence over the operating activities of Love Co. During 2019, Love Co. reported net income of $200,000 and paid a dividend of $50,000.

Required: Determine whether each of the investments described should be classified as fair value securities, held-to-maturity securities, or equity method securities. Determine the reason of your classification.

1. Calculate the following white cell count if the dilution of 1/100. Show your calculations. (3pts)

Side #1                                                               Side #2

Square 1 = 30 white cells             Square 1 = 27 white cells

Square 2 = 28 white cells             Square 2 = 27 white cells

Square 3 = 25 white cells             Square 3 = 24 white cells

Square 4 = 27 white cells             Square 4 = 24 white cells