Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $20 per share and has a beta of 0.7. There are 2 million common shares outstanding. The market risk premium is 12%, the risk-free rate is 8%, and the firm’s tax rate is 40%. BOOK-VALUE BALANCE SHEET (Figures in $ millions) Assets Liabilities and Net Worth Cash and short-term securities $ 1.0 Bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 15.0 Accounts receivable 4.0 Preferred stock (par value $20 per share) 3.0 Inventories 8.0 Common stock (par value $0.10) 0.2 Plant and equipment 24.0 Additional paid-in stockholders’ equity 10.8 Retained earnings 8.0 Total $ 37.0 Total $ 37.0 a. What is the market debt-to-value ratio of the firm? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

3. Vacation Island has only one hotel on the entire island. The demand schedule to rent a room for a-night at the hotel is given bellow. Price per night Quantity demanded $150 0 $130 1 $110 2 $90 3 $70 4 $50 5 $30 6 a) Calculate the hotel’s total revenue and its marginal revenue. Fill in the table below. Price Quantity Total Revenue Marginal Revenue $150 0 - $130 1 $110 2 $90 3 $70 4 $50 5 $30 6 b) The marginal costs are listed in the table below. What price will the hotel charge to maximize its profit? Explain. Quantity Marginal Cost 0 - 1 $40 2 $43 3 $50 4 $61 5 $76 6 $95 c) How many rooms will be rented, when the hotel maximizes its profit? Explain.

R& V Hotel is consistently incurring losses for the past 2 years though the sales clerk receives customer orders, raises sales invoices at a higher price and processes payments for customers. Hotel customers have contracted prices, however online trade prices automatically loaded in to the system but the Brenda clerk used to amend manually. Mr. Zakariya an internal auditor found some deficiencies, who has taken some necessary actions to cross check those invoices and employees responsibilities and suggested the management immediately to prevent from loss of customers and good will of the hotel.
Based on the above scenario:
1. How the internal audit for R and V hotel can be helpful in resolving the issues they are confronting at the moment? Justify your answer practically
2. If you were Mr. Zakariya, prepare doable audit plan that Mr. Zakariya that you can use for the company and provide recommendations on how to overcome the deficiencies cited in the case?

This is the probability distribution between two random variables X and Y:

a) Are those variables independent?

b) What is the marginal probability of X?

c) Find E[XY]

1. Calculate the expected rate of return for Stock J. Round your answer to two decimal places.
     %
   
2. Calculate the standard deviation for the market. Round your answer to two decimal places.
     %
   
   Calculate the standard deviation for Stock J. Round your answer to two decimal places.
     %

Confidence Interval Worksheet with Sample Data MTH 160: Statistics

Read the following scenario and complete each of the problems below:

A flashlight company claims that the new bulb in its heavy-duty flashlight will average 246 hours of light. A statistics student decides that he/she wants to test this claim at a 5% level of significance to determine if there is evidence to support the claim. The student randomly selects and tests 15 flashlight bulbs and records how long the bulb lasts until it burns out. Assume the life of a bulb is normally distributed. T

he data is in the table below

Trial 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Hrs: 246 224 231 242 237 240 243 236 239 255 256 239 247 231 253

A. The standard deviation of the population is 7.4 hours. Construct a 95% confidence interval for this study.

B. Same scenario, but the population’s standard deviation is not known. Construct a 95% confidence interval for this study.

C. Write a statement comparing and contrasting the two confidence intervals and results.

Read the following scenario and complete each of the problems below:

A new car manufacturing company has emerged and has claimed that its new hybrid car, the Pusho, gets a better gas mileage than the highest ranked Toyota Prius. Consumer Reports Magazine decides to test this claim at a 5% level of significance. Consumer Reports randomly selects 10 of each type of car, calculates the miles per gallon for each car in the study, and records the data in the table below. Assume miles per gallon of the cars is normally distributed.

Pusho 54.1 52.4 55.7 49.7 50.6 48.9 51.8 54.5 56.9 49.8

Prius 53.2 54.3 49.8 50.1 50.5 56.1 47.8 53.4 56.8 48.7

A. Construct a 90% confidence interval for the difference in the gas mileage of Pusho and Prius.

B. Construct a 95% confidence interval for the difference in the gas mileage of Pusho and Prius.

C. Write a statement comparing and contrasting the two confidence intervals and the significance of having 0 in both of those intervals.

A statistical program is recommended.

A highway department is studying the relationship between traffic flow and speed. The following model has been hypothesized:

y = β₀ + β₁x + ε

where

• y = traffic flow in vehicles per hour
• x = vehicle speed in miles per hour.

The following data were collected during rush hour for six highways leading out of the city.

Develop an estimated regression equation for the data of the form

ŷ = b₀ + b₁x + b₂x².

(Round b₀ to the nearest integer and b₁ to two decimal places and b₂ to three decimal places.)

ŷ =

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

Base on the model predict the traffic flow in vehicles per hour at a speed of 38 miles per hour. (Round your answer to two decimal places.) vehicles per hou

question 2-

A statistical program is recommended.

Car manufacturers produced a variety of classic cars that continue to increase in value. Suppose the following data is based upon the Martin Rating System for Collectible Cars, and shows the rarity rating (1–20) and the high price ($1,000) for 15 classic cars.

Develop an estimated multiple regression equation with x = rarity rating and

x²

as the two independent variables. (Round b₀ and b₁ to the nearest integer and b₂ to one decimal place.)

ŷ =

Consider the nonlinear relationship shown by equation (16.7):

E(y) = β₀β₁^x

Use logarithms to develop an estimated regression equation for this model. (Round b₀ to three decimal places and b₁ to four decimal places.)

log(ŷ) =

ACC 3010 Project 3 Part 1