1 (a). A put option with an exercise price of $17 that expires in 4 months currently costs $3. The
stock price is currently $18 and the risk-free rate of return is 0.04. What is a call option worth (same exercise price and expiry)?

(b) Draw the profit diagram (at expiry) for the put option from part (a)

•Suppose FCFE = $900,000 for years 1-4 and then is expected to grow at a rate of 3%. Assume ke = 18%. What is the market value of equity?

1.What is the present value of $15 if I receive it in 4 years and the discount rate is 3%? Round your answer to two decimal places.

2. How much cash flow will an investment of $1264 need to generate annually to pay for itself in 6 years? Round your answer to the whole dollar.

3.What is the net present value of $50 each year for the next 7 years if the discount rate is 1%? Round your answer to two decimal places.

4.You invest $100 today expecting to make a return of 8% over 5 years. After the 5 years in up, you get a cash payout of $140. Did the investment perform to you expectations?

5. You invest $100 today expecting to make a return of 8% over 5 years. After the 5 years in up, you get a cash payout of $140. What is the difference between what you invested, and the net present value of your nominal dollar return adjusted to its net present value? Round your answer to two decimal places. Your answer should be either positive or negative based on NPV-100.

6. the Brats'n'Jerky meat packing company is considering purchasing a new piece of equipment that will cut back on waste as well as save time. Savings from reduced waste are expected to be $2712. It's expected that the new equipment will cut the number of hours required at the plant by 1531 hours annually. The cost of one hour of labor $16. The cost of the piece of equipment being considered is $80436. What is the expected payback on the piece of equipment being considered? Round your answer to one decimal place.

7. The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They are considering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $79505 to purchase. It's expected that additional sales will be $25680 per year while variable expenses are expected to increase $4930 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $3315. The Johnny Pickles Brewing Company uses a discount rate of 10% when deciding to accept a project. What is the projected undiscounted cash flow for the bottling line in year 3? Round your answer to the whole dollar.

1. if a buffer has a 4 charge and it is involved in removing two hydrogen ions from a solution, the buffers charge will become:

2. How many times more basic is a solution with a pH of 9 compared to a solution with a pH of 2?

3. What is the term used when describing an electrolyte becoming individual ions?

Question 4

A machine was acquired on January 1, 2015, at a cost of $80,000. The machine was originally estimated to have a residual value of $5,000 and an estimated life of 5 years. The machine is expected to produce a total of 100,000 components during its life, as follows: 15,000 in 2015, 20,000 in 2016, 20,000 in 2017, 30,000 in 2018, and 15,000 in 2019.

Instructions

(a)   Calculate the amount of depreciation to be charged each year, using each of the following methods:

       1.    Straight-line method

       2.    Units-of-production

       3.    Double diminishing-balance

(b)   Which method results in the highest depreciation expense during the first two years? Over all five years?

Question 5

Certossi Service Ltd. uses straight-line depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during their first three years of operations:

2014    Jul       1          Purchased equipment for $32,000 cash, with shipping costs of $2,000.

            Nov     3          Incurred ordinary repairs on the computer of $360.

            Dec     31        Recorded 2014 depreciation on the basis of a four-year life and estimated residual value of $200.

2015    Dec     31        Recorded 2015 depreciation.

2016    Jan      1          Paid $1,600 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment.

Instructions

Prepare journal entries to record the above events. (Show calculations.)

Question 6

Comparative statements of financial position for Campbell Inc. appear below:

CAMPBELL INC.

Comparative Statements of Financial Position

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Assets

                                                                                                Dec. 31, 2016 Dec. 31, 2015

Cash                                                                                        $ 29,000         $15,000

Accounts receivable                                                                   28,000         19,000

Prepaid expenses                                                                         9,000         12,000

Merchandise inventory                                                               37,000         27,000

Long-term investments                                                               35,000         53,000

Equipment                                                                                   75,000         48,000

Accumulated depreciation—equipment                                   (26,000)        (22,000)

Total assets                                                                             $187,000         $152,000

Liabilities and Shareholders' Equity

Accounts payable                                                                   $ 21,000         $ 9,000

Mortgage payable                                                                       37,000         45,000

Common shares                                                                         40,000         23,000

Retained earnings                                                                       89,000         75,000

            Total liabilities and shareholders' equity                    $187,000         $152,000

Additional information regarding fiscal 2016:

1.         Profit for the year was $27,000.

2.         Cash dividends of $13,000 were declared and paid during the year.

3.         Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash.

Instructions

Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2016.

1. A 4 kg mass is resting on a ramp inclined at an angle of 30 degrees with respect to the horizontal. A string is attached to the 4 kg mass and passes over a frictionless pulley and is connected to a 5 kg mass hanging over the side. If the coefficient of friction between the ramp and the 4 kg mass if 0.3 find; A) The acceleration of both masses B) The tension in the string C) Find the speed of both blocks after they move a distance of 2 meters.

1. Young children in the U.S. are exposed to an average of 4 hours of television per day, which can adversely impact a child’s well-being. You are working in a research lab that hypothesizes that children in low income households are exposed to more than 4 hours of television. In order to test this hypothesis, you collected data on a random sample of 75 children from low income households. You found a sample mean television exposure time of 4.5 hours. Based on a previous study, you are willing to assume a population standard deviation of 0.5 hours. a. Using this information, test your hypothesis using the critical value approach; assume a significance level of 10%. b. Calculate the p-value associated with your test statistic. Using the p-value approach, what is your hypothesis test conclusion?

y'' - 8y = 4, y(1) = 9, y'(0) = 5

- Part 1 – 4 Debugging Exercises – there are things wrong – either logic or syntax errors.  Correct the pseudocode and one Java program. Add the corrected code in BOLD and change the corrected color to RED.  

Debugging 2:  Add the missing code in bold and red.

start

                  Declarations

                           num number

                  housekeeping()

                  while number >= 15

                           detailLoop()

                  endwhile

                  finish()    

stop

housekeeping()

         number = 1

return

detailLoop()

         output number

         num = number + 1

return

finishUp()

         output “End of program”

return