Suppose r_RF = 4%, r_M = 10%, and b_i = 1.8.

2. Now suppose r_RF decreases to 3%. The slope of the SML remains constant. How would this affect r_M and r_i?

-Select-IIIIIIIVVItem 3

1. What is r_i, the required rate of return on Stock i? Round your answer to one decimal place.

     %

2. 1. Now suppose r_RF increases to 5%. The slope of the SML remains constant. How would this affect r_M and r_i?
   1. r_M will remain the same and r_i will increase by 1 percentage point.
   2. r_M will increase by 1 percentage point and r_i will remain the same.
   3. Both r_M and r_i will decrease by 1 percentage point.
   4. Both r_M and r_i will remain the same.
   5. Both r_M and r_i will increase by 1 percentage point.

   -Select-IIIIIIIVVItem 2

   1. r_M will decrease by 1 percentage point and r_i will remain the same.
   2. r_M will remain the same and r_i will decrease by 1 percentage point.
   3. Both r_M and r_i will increase by 1 percentage point.
   4. Both r_M and r_i will remain the same.
   5. Both r_M and r_i will decrease by 1 percentage point.
3. 1. Now assume that r_RF remains at 4%, but r_M increases to 11%. The slope of the SML does not remain constant. How would these changes affect r_i? Round your answer to one decimal place.

   The new r_i will be   %.

   2. Now assume that r_RF remains at 4%, but r_M falls to 9%. The slope of the SML does not remain constant. How would these changes affect r_i? Round your answer to one decimal place.

   The new r_i will be   %.

4) Okun's law states that one extra percentage point in unemployment causes A) a 2 percent fall in GDP B) a 0.5 percent fall in GDP C) a 2 percent fall in the rate of inflation D) a 0.5 percent fall in the rate of inflation

5) If output is at its full-employment level, then A) the actual unemployment rate is zero B) the natural rate of unemployment is zero C) there are no frictions in the labor market since wages have reached their market-clearing level D) there is still some positive level of unemployment due to frictions in the labor market

6) The income velocity of money can be calculated using the following formula A) V = M/(PY) B) V = (MY)/P C) V = (PY)/M D) V = MY

A. Define ‘acceptable quality’ according to s 54 (2) of the Australian Consumer Law (ACL). B. What arguments can a seller put forward for limiting the scope of section 54 on acceptable quality found in the Australian Consumer Law (ACL)? (7 marks

3. Two charges with fixed positions are listed below: q1 = −4 µC at (−2 mm, 2 mm); q2 = −14 µC at (3 mm, 2 mm).

(a) (5 points) Determine the electric potential at the origin.

(b) (10 points) If an α-particle were placed at the origin, determine the electric force on the α-particle due to the fixed charges. Note: an α-particle is a helium nucleus, which is made of two protons and two neutrons.

(c) (10 points) Where could an α-particle be placed so that it would have no acceleration (ignore any gravitational effects).

PLEASE ANSWER ALL PARTS AND LABEL THEM. THANK YOU

Solve the wave equation
∂2u/∂t2 = 4 ∂2u/∂x2 , 0 < x < 2, t > 0

subject to the following boundary and initial conditions.
u(0, t) = 0, u(2, t) = 0,
u(x, 0) = { x, 0 < x ≤ 1
2 − x, 1 < x < 2 , ut(x, 0) = 0

A 6.00-L sample of C 2 H 4 (g) at 2.00 atm and 293 K is burned in 6.00 L of oxygen
gas at the same temperature and pressure to form carbon dioxide and liquid water.
If the reaction goes to completion, what is the final volume of all gases at 2.00 atm
and 293 K?

4. The realtors from problem #2 wants to explore how location and size impacts the selling price for single-family houses. The realtors plans to use number of rooms as an indicator of size. Location will be whether the home is located on the east side of town (=0) or west side of town (=1). The data she collected from 20 homes is located in the data file Homes.

a. Run a multiple regression using number of rooms and neighborhood location to predict selling price. Report your regression equation.

b. Is the regression model you ran statistically significant? How can you tell?

c. What is the relationship (correlation) between the predictors and selling price?

d. How much variance in selling price is explained by the predictors?

e. Which of your predictors explain a unique amount of variance in selling price?

f. Predict the selling price of a home on the east side of town with 8 rooms. Predict the selling price of a home on the west side of town with 8 rooms. Explain the difference between the two selling price estimates.

2. In Apple’s just-released financial report, it had an earnings per share of E0 = $4. It has also

just paid dividend per share of D0 = $1. The risk-free rate is 0%, Apple stock's beta is 1, and

the expected market return is 10%. Currently, Apple has a stock price of $100. You assume

Apple's dividend grows at a constant rate.

a. What is Apple's ROE implied by the dividend discount model? (That is, you need to use the

dividend discount model to solve Apple’s ROE)

After reading Apple's financial statements, you find that Apple's net income is 9 million and its shareholders' equity is 100 million.

b. What is Apple ROE calculated from its financial statement

c. What is Apple's intrinsic value? Is Apple undervalued or overvalued

d. Assume you are the advisor to Tim Cook, the CEO of Apple, you tell him the stock's intrinsic

value will increase to $40 if he starts now to pay all earnings as dividends. Show him the

calculation.

Parramore Corp has $15 million of sales, $2 million of inventories, $4 million of receivables, and $2 million of payables. Its cost of goods sold is 85% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations.

What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places. ___ days

If Parramore could lower its inventories and receivables by 10% each and increase its payables by 10%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places. ___ days

How much cash would be freed up, if Parramore could lower its inventories and receivables by 10% each and increase its payables by 10%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. ___ $

By how much would pretax profits change, if Parramore could lower its inventories and receivables by 10% each and increase its payables by 10%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. ___ $

4. Describe and explain two characteristics of 2’s Compliment Representation of integer numbers that makes it almost universally used in today’s digital computers.