Questions
With the use of a diagram illustrate the four main ways that services are traded across...

With the use of a diagram illustrate the four main ways that services are traded across the world.

In: Economics

4. What is the difference between the commodities traded in the forward market and the futures...

4. What is the difference between the commodities traded in the forward market and the futures market?

In: Finance

The mean of sample A is significantly different than the mean of sample B. Sample A:...

The mean of sample A is significantly different than the mean of sample B. Sample A: 59 46 74 62 87 73 Sample B: 53 67 81 57 93 79 Use a two-tailed t-test of independent samples for the above hypothesis and data. What is the p-value? (Answer to 3 decimal places)

In: Statistics and Probability

In the financial market, both "good" and "bad" securities are traded. On the paper gives Both...

In the financial market, both "good" and "bad" securities are traded. On the paper gives Both SEK 100 in return, but the risk of a "good" securities becoming worthless is 20 percent. The risk of this happening a "bad" securities is 50 percent. The proportion of good and bad Securities in the market are equal and both buyers and sellers are risk-neutral a) a) What price will the securities be traded if neither buyer nor seller knows about them Is the good or bad variety of quality?

In: Economics

What are bonds? What are their features and how are they traded? b. What are stocks?...

What are bonds? What are their features and how are they traded?


b. What are stocks? What are their features and how are they traded?


c. How do you calculate an annual rate of return?


d. You buy a share of stock for $100 and it pays no dividend. A year later the market price is $105. What is the rate of return?


e. You buy a share of stock for $100 and a year later the market price is $105 and it pays a dividend of $2. What is the return?


In: Finance

Which of the following statement(s) regarding the exchange-traded funds (ETF) is (are) correct? I. Individual ETF...

Which of the following statement(s) regarding the exchange-traded funds (ETF) is (are) correct?

I. Individual ETF shares are traded on the exchanges

II. An authorized participant can redeem ETF shares directly from the ETF provider.

III. The “redemption-in-kind” process helps ETF(s) to maximize tax efficiency.

A.

Only I

B.

Only II

C.

I and III

D.

I and II

E.

I, II, and III

In: Accounting

Assume that the following cases are independent and rely on the following data. Make entries on...

Assume that the following cases are independent and rely on the following data. Make entries on the books of both companies.

Jensen Co. Merton Co.
Equipment (cost) $2,700,000 $4,950,000
Accumulated depreciation 870,000 2,700,000
Fair value of equipment 2,100,000 2,100,000

Jensen Co. and Merton Co. traded the above equipment. The exchange has commercial substance.

Jensen Co.'s Books: Merton Co.'s Books:


Jensen Co. and Merton Co. traded the above equipment. The exchange lacks commercial substance.

Jensen Co.'s Books: Merton Co.'s Books:

Assume that the following cases are independent and rely on the following data. Make entries on the books of both companies.

Jensen Co. Merton Co.
Equipment (cost) $2,700,000 $4,950,000
Accumulated depreciation 870,000 3,150,000
Fair value of equipment 1,680,000 2,100,000
Cash received (paid) (420,000) 420,000

Jensen Co. and Merton Co. traded the above equipment. The exchange has commercial substance.

Jensen Co.'s Books: Merton Co.'s Books:


Jensen Co. and Merton Co. traded the above equipment. The exchange lacks commercial substance.

Jensen Co.'s Books: Merton Co.'s Books:

In: Accounting

Disney's Hannah Montana: The Movie opened in April 2009. The ticket sales revenue ($) for a...

Disney's Hannah Montana: The Movie opened in April 2009. The ticket sales revenue ($) for a sample of theaters is below. Use it to answer/do the following. 20,200 8,350 10,750 13,900 13,185 10,150 7,300 6,240 4,200 21,400

(a) Estimate the average ticket sales revenue.

(b) Develop a 90% confidence interval for the mean in (a).

(c) Develop a 95% confidence interval for the mean in (a).

(d) Develop a 99% confidence interval for the mean in (a).

(e) If ticket prices were $7.16 on average, estimate the mean number of customers per theater.

(f) The movie was shown in 3,118 theaters. Estimate the number of people who saw the movie

In: Statistics and Probability

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $6 million in anticipation of using it as a toxic dumps site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $4.25 million. The company wants to build its new manufacturing plant on this land; the plant will cost $7.2 million to build. The following market data on DEI’s securities are current:

Debt:                           10,000 8% coupon bonds outstanding, 15 years to maturity selling for 94% of par; the bonds have a $1,000 par value each and make semiannual payments.

Common Stock:           250,000 shares outstanding, selling for $65 per share; the beta is 1.3.

Preferred stock:           10,000 shares of 7% preferred stock outstanding, selling for $81 per share.

Market:                       8% expected market risk premium; 5.65% risk-free rate

DEI’s tax rate is 34%. The project requires $750,000 in initial net working capital investment to get operational.

Calculate the project’s Time 0 cash flow, taking into account all side effects.

The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjusted factor of +2% to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI’s project.

The manufacturing plant has an eight-year tax life, and DEI uses straight line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $2 million. What is the after-tax salvage value of this manufacturing plant?

The company will incur $900,000 in annual fixed costs. The plan is to manufacture 10,000 RDSs per year and sell them at $10,000 per machine; the variable production costs are $9,100 per RDS. What is the annual operating cash flow, OCF, from this project?

Finally, DEI’s president wants you to throw all your calculations, all your assumptions, and everything else into a report for the chief financial officer; all he wants to know is what the RDS project’s internal rate of return, IRR, and net present value, NPV are. What will you report?

In: Finance

1. Record debit card transactions. On September 12, five customers use debit cards to purchase merchandise...

1. Record debit card transactions. On September 12, five customers use debit cards to purchase merchandise totalling $500 from Triomedia Company. The bank charges Triomedia Company $0.70 per debit card transaction. Prepare the entry to record the transactions by Triomedia Company. 2. Record credit card transactions. On April 16, Triomedia Company made sales of $12,950 to customers using credit cards for payment. The credit card company charges Triomedia a service fee of 2.5% for credit card transactions. Prepare the entry to record the credit card sales. Round to the nearest dollar.

In: Accounting