To investigate the youth use of the Internet, a sample of 7 adults was asked to report the number of hours they spent on the Internet during the last month. The results are listed below:

52, 87, 60, 39, 42, 50, 40

The researchers claim that the number of hours the adults spent on the Internet exceeds 52 hours per month.

1. Find the point estimator of the mean (u) for the number of hours the adults spent on the Internet per month.
2. Construct the 90% confidence interval for u. Report the final answer
3. Conduct a 5-step test of hypotheses to investigate the researchers claim. Use a=0.10

Léger and National Public Relations last week released their annual report ranking Canada’s most admired companies. While some results were indeed surprising, others were not. But Tim Hortons’ year was just plain awful. It went from No. 4 to No. 50 in just 12 months. This significant free fall can be linked to the very public spat between Tim Hortons franchisees and the Tim Hortons parent company, Restaurant Brands International (RBI). How Tim Hortons lost its connection with the Canadian public?

Match the following

column A column B

Comment. 1. java.util.Scanner

Wrapper 2. length

char[] myletters 3. final int x=10;

import java.io.* 4. catch

ArrayList 5.alpha

String Class 6.double

Switch 7.inputfile.close();

try 8.remove()

Constant 9.default

Keyboard Input 10.compare

1. The demand and supply schedules for hot dogs are:

a. What are the equilibrium price and equilibrium quantity of hot dogs?

b. If the price for hot dogs were 90 cents, describe the situation in the market for hot dogs and explain what would happen next in the market.

c. Assume a new breed of “lipless” pigs is bred, resulting in a decrease in supply of 40 million hot dogs per week. What is the new equilibrium price and quantity in the market?

d. Assume that, at the same time that part c. occurs, a Canadian news magazine prints a story regarding the cancer-reducing effects of hot dog consumption. The result is an increase to demand of 20 million hot dogs per week. What is the new equilibrium price and quantity in the market?

7-Suppose that your company just paid a dividend of $1.2; the dividends are expected to grow at a constant rate of 5% indefinitely. Today’s market price/share is $45. Suppose also that your company has some bonds outstanding in the market selling for $1,035. The bonds have 8 years left to maturity, with 8% coupon rate with semi-annual payments. If your company’s capital structure is 35% debt and 65% equity, with the tax rate of 40% what is the WACC?

Your company’s target capital structure is 35% debt, 15% preferred, and 50% common equity. The yield to maturity on the debt is 7.50%, the return on the preferred is 7.00%, the cost of retained earnings is 12.5%, and the tax rate is 40%. The firm will not be issuing any new security. What is the WACC?

Section Exercise 4-29 Noodles and Company tested consumer reaction to two spaghetti sauces. Each of 70 judges rated both sauces on a scale of 1 (worst) to 10 (best) using several taste criteria. To correct for possible bias in tasting order, half the judges tasted Sauce A first, while the other half tasted Sauce B first. Actual results are shown below for “overall liking.”

Sauce A: 5, 5, 3, 6, 7, 5, 7, 6, 2, 6, 5, 7, 7, 6, 7, 9, 8, 8, 6, 5, 7, 8, 5, 5, 8, 3, 6, 7, 8, 5, 6, 1, 6, 5, 8, 5, 5, 4, 8, 7, 6, 7, 6, 6, 7, 7, 8, 8, 7, 8, 5, 7, 5, 5, 1, 7, 9, 5, 6, 5, 6, 8, 6, 6, 5, 6, 1, 8, 7, 8

Sauce B: 8, 8, 2, 7, 9, 8, 3, 8, 7, 8, 7, 7, 1, 8, 7, 5, 1, 5, 7, 8, 7, 7, 7, 8, 7, 7, 2, 9, 5, 8, 7, 6, 6, 7, 6, 2, 8, 6, 6, 7, 7, 8, 7, 7, 5, 5, 6, 1, 5, 6, 5, 5, 2, 6, 5, 5, 5, 2, 6, 5, 6, 5, 7, 5, 4, 7, 8, 6, 8, 6 Click here for the Excel Data File (a) Calculate the mean and standard deviation for each sample. (Round your answers to 3 decimal places.) x⎯⎯ S Sauce A Sauce B (b) Calculate the coefficient of variation for each sample. (Enter your answer as a percentage rounded to 1 decimal place.) CVA % CVB % (c) What is your conclusion about consumer preferences for the two sauces? On average, consumers seem to prefer Sauce A over Sauce B. On average, consumers seem to prefer Sauce B over Sauce A.

A cereal company has claimed that one serving of their cereal has on average 120 calories with a standard deviation of 12 calories.  You decide to test their claims and examine 10 different recommended serving sized bowls for calorie count and nutritional content. The data is below.  With an alpha level of .05, does the evidence support the cereal company’s claims?  

α = .05

μ = 120

σ = 12

mean = _____

n = _____

Joan’s Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations:

A) Prepare journal entries to record the transactions.

1a. To record purchase of inventory on account

1b. To record payment to supplier

2a. To record payment to staff

2b. To record employer's liabilities

2c. To record payment to government

3a. To record warranty expense

3b. To record warranty payments

4.

B) Prepare the current liabilities section of the statement of financial position as it would appear at the end of the year.

WACC

The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 7.5 million shares outstanding, is now (1/1/17) selling for $61 per share. The expected dividend at the end of the current year (12/31/17) is 55% of the 2016 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note that 9 years of growth are reflected in the 10 years of data.)

Year EPS Year EPS

2007 $3.90 2012 $5.73

2008 4.21 2013 6.19

2009 4.55 2014 6.68

2010 4.91 2015 7.22

2011 5.31 2016 7.80

The current interest rate on new debt is 8%; Foust's marginal tax rate is 40%; and its target capital structure is 40% debt and 60% equity.

Calculate Foust's after-tax cost of debt. Round your answer to two decimal places.

%

Calculate Foust's cost of common equity. Calculate the cost of equity as rs = D1/P0 + g. Round your answer to two decimal places. Do not round your intermediate calculations.

%

Find Foust's WACC. Round your answer to two decimal places. Do not round your intermediate calculations.

%