The water diet requires one to drink two cups of water every half hour from when one gets up until one goes to bed, but otherwise allows one to eat whatever one likes. Four adult volunteers agree to test the diet. They are weighed prior to beginning the diet and after six weeks on the diet. The weights ( in pounds) are Person 1 2 3 4 Weight before diet 180 125 240 150 Weight after diet 170 130 215 152 For the population of all adults, assume that the weights loss after six weeks on the diet ( weight before beginning the diet---weight after six weeks on the diet) is Normally distributed with mean μ. a. Test the hypothesis if the diet leads to weight loss. b. Construct a 95% confidence interval for the mean difference.

The following information is available for three companies:

Required
a. Determine the annual before-tax interest cost for each company in dollars.

b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.)

c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds. (Round your answers to 1 decimal place.)

. X Corporation plans to announce that it will issue $1.6 million of bonds and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 6%. The company is currently all-equity and worth $6.1 million with 280,000 shares of common stock outstanding. After the sale of the bonds, the company will maintain the new capital structure indefinitely. The annual pretax earnings of $1.45 million are expected to remain constant in perpetuity. The tax rate is 21%.

a. What is the expected rate of return on the company’s equity before the announcement?

b. What is the price per share of X’s equity before the announcement?

c. What is the price per share of X’s equity immediately after the announcement?

d. What is the market value of X’s equity immediately after the actual debt issue and repurchase?

e. What is required rate of return on equity (cost of equity) after the capital structure restructuring?

Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported $600,000 of taxable business income for the year (2020). Before considering her 50 percent business income allocation from Beehive and the self-employment tax deduction (if any), Sarah’s adjusted gross income is $150,000 (all employee salary). Answer the following questions for Sarah.

What is Sarah’s net investment income tax liability (assume no investment expenses)?

1.Please list and discuss what happens to the Supply and Demand forces in the market for rental housing in a typical, "popular" U.S. city (metro area) over a typical twelve month period (before March 2020)?

2. what happens to Demand? Why?

3. What happens to Supply? Why?

4What happens to price and quantity as a result over this one year time frame? Why?

5.In theory, what happens to the price and quantity of rental housing over a typical ten year period?

Advair, a combine bronchodilator and inhaled steroid is relatively slow working. Usually a patient has to wait at least an hour before the full effect of this medicine kicks in. We were interested whether the patients could be reclassified (from severe to moderate COPD) within one-hour based on their Advair intervention. Measurements were made before the Advair was administered and then exactly one-hour after the treatment. Here are the data.

So over 1,500 patients were studied. Of the 1,554, 853 (or 55%) were classified as being severe COPD patients before the Advair intervention and then after the intervention, this number dropped to 766 (or 50%).

So it appears there was an effect within the one-hour time period. Now we need to show it statistically.

So using the McNemar test, test the claim at 95% confidence that there was an Advair intervention effect.

1. State the Null and Alternative Hypotheses (1)
2. State the Decision Rule (2)
3. Determine the McNemar test statistic (3)

State your Decision and Interpretation. (1,1)

The yield to maturity of a 10-year 4% annual coupon bond is 4%.

a.Suppose that you buy the bond today and hold it for 10 years.Assume that the interest rates go up to 5% (100 basis points increase) after the bond is purchased and before the first coupon is received. What is your realized rate of return?

b.Suppose that you buy the bond today and hold it for 6years.Assume that the interest rates go up to 5% (100 basis points increase) after the bond is purchased and before the first coupon is received. What is your realized rate of return?

The yield to maturity of a 10-year 4% annual coupon bond is 4%.

a.Suppose that you buy the bond today and hold it for 10 years.Assume that the interest rates go up to 5% (100 basis points increase) after the bond is purchased and before the first coupon is received. What is yourrealized rate of return?

b.Suppose that you buy the bond today and hold it for 6years.Assume that the interest rates go up to 5% (100 basis points increase) after the bond is purchased and before the first coupon is received. What is yourrealized rate of return?