•Exercise 1: It is assumed that 80% of the students pass the MBA 510 course. Calculate the following for a class of 15 students:
(a) the mean number of students expected to pass;
(b) the standard deviation;
(c) P(exactly 12 of the 15 students pass);
(d) P(at least 12 of the 15 students pass).
•Exercise 2: Five customers enter a store and make independent purchase decisions. The store’s records indicate that 20% of all customers who enter the store will make a purchase.
(a) Does a general discrete probability distribution or the binomial distribution apply?
(b) Write the probability form applicable.
Calculate the probability that:
(c) exactly 4 customers will make a purchase;
(d) less than 3 customers will make a purchase.
Please show all the work in Excel or Word.
In: Statistics and Probability
Assignment Problem:
Matt Profitt, an MBA student, is studying companies that are going public for the first time. He is curious about whether or not there is a significant relationship between the size of the offering (in millions of dollars) and the price per share.
Size 108 4.4 3.5 8.6 139 228 47.5 5.5 175 12 51 66
Price 12 4 5 6 13 19 8.5 5 15 6 12 12
a. Develop the appropriate scatterplot for the two variables in the Excel spreadsheet.
b. Based upon the visual inspection of the plot, what type (directional) of relationship do you anticipate between the dependent and independent variables? Offer a brief explanation why that makes theoretical sense.
Please use the example illustrated Tables 12.2 and 12.3 for guidance on the EXCEL steps appropriate to generate the information needed to address the remaining sections.
c. Calculate SSXX,SSYY, and SSXY.
d. Calculate the estimated y intercept (b0) and the estimated slope coefficient (b1).
e. Interpret the estimate slope coefficient.
f. Construct the ANOVA appropriate for this regression model.
g. Calculate r2.
h. Interpret the coefficient of determination.
i. Calculate s sub b1.
j. Calculate the correlation coefficient.
k. Test whether or not the population correlation coefficient (rho) differs from zero. Use alpha = 0.05.
Could you please just help me with J and K? Thank you so much!
In: Statistics and Probability
Suppose that, after completing your MBA, you are offered a job as a management consultant in a firm specialized in engagement and productivity. One of your first assignments is related to the education sector. specifically working with a large university. The overall goal of the project you're managing is to identify and enhance motivational factors of students in a well-known university. The purpose is to help improve student motivation and learning engagement to help students reach their goal of degree completion. Because you have recently finished your studies, you feel you have a good understanding of the elements that motivate and de-motivate students.
In: Operations Management
This case was provided by Pro- fessor Daniel Purdy, Assistant Director of the MBA Program, and Professor Wendy Wilhelm, Professor of Marketing, both of Western Washington University.
The College of Business at Western Washington University is a full-service business school at a midsized regional university. The College of Business special- izes in undergraduate business education with selected gradu- ate programs. While the College emphasizes mostly professional education, it does so within a
offerings, such as the highly suc- cessful Manufacturing and Sup- ply Chain Management degree.
The College is commit-
ted to a student-centered style
of education that emphasizes
the students not as customers
but as equal stakeholders in the
process of education. As part
of its commitment to involving
the students as true partners,
the College has recently begun
the process of conducting focus
groups of undergraduate and
graduate students. The objec-
tive of these focus groups is to
identify negative and positive attitudes about the College and
develop new ideas to improve the College.
liberal arts context. Business majors range from standards such as Accounting, Marketing, and Finance to more unique
The following is an excerpt from the transcript of the first undergraduate focus group. This group included 14 stu- dents with the following makeup: 50% male and 50% female; 93% work part-time or more, and 7% do not work; and 29% management majors, with other majors no more than 15%.
Moderator: So what do you guys think are some ways that the College (not the University) can be improved? Jeff: I really like the fact that professors are accessible, willing to help and a lot of them let us call them by their first name. Something that I think could be better is that we don’t spend enough time learning how to do things but in- stead professors spend too much time talking about theory. Sarah: Yea, Yea, I agree totally. It seems like most of the time we aren’t learning practical skills but just talking about what we “should” do, not really learning how to do it. Moderator: Interesting points, how would you suggest the College try to increase the amount of practical learning? Todd: It would really be cool if we could do more real-life professional work in our classes. Things like skill-based projects that focus on doing what we would really do in our profession.
Tim: I think we should all have to do a mandatory intern- ship as part of our major. Right now, some majors let you do it as an elective but they are really hard to find and get. Moderator: Good ideas. Are there other things you think we could improve?
Rhonda: I agree that the professors try really hard to be open to students but the advising is really not very good, I don’t know how to fix it but I know my advisor is pretty much useless.
Ariel: I know, I know. It is so frustrating sometimes. I go to my advisor and she tells me to just fill in my degree
planning sheet and she’ll sign it. It’s like they don’t even
know what I should be taking or why.
Jon: My advisor is kind of funny, he just tells me that he doesn’t
really know that much about classes he doesn’t teach and my guess
is as good as his. At least he’s honest anyway. Moderator: Ok, Ok,
so the advising you are getting from the faculty leaves a little to
be desired. What do you guys do to figure out how to plan your
degrees if your advisors aren’t helping much?
Sarah: I just ask my friends who are further along in the major
than I am.
Mark: Yea, me too. In the Student Marketing Association we all give
each other advice on what professors are good, what classes go good
together, which have prerequisites and stuff like that. It would be
cool if we could have some- thing like that for the whole
college.
Moderator: Don’t you think CBE could be improved if we developed some sort of Peer-Advising Program?
Using these excerpts as representative of the entire focus group transcript, answer the following questions:
Do you think focus groups were the appropriate research method in this case, given the research objectives? What other type(s) of research might provide useful data?
Evaluate the questions posed by the moderator in light of the research objectives/question: (a) Are any of them leading or biased in any way? (b) Can you think of any additional questions that could/should be included?
Examine the findings. How is CBE perceived? What are its apparent strengths and weaknesses?
Can we generalize these findings to all of the College’s students? Why or why not?
In: Operations Management
Overview- Assume you have just earned an MBA and taken a position as an analyst with an investment bank. You are assigned to a team of analysts responsible for monitoring pharmaceutical companies. Your report would be used in formulating buy/sell recommendations on these companies.
Assignment- Select Teva Pharmaceutical Industries, Ltd. and Merck & Co. for comparative purposes. Prepare a three‐year comparative report and financial analysis on the two companies using the most recent financial data from each company's annual financial statements.
Requirements The report must include:
1. Description and background of companies and product lines
2. How they compare:
a) Financially 1. Working capital 2. Current ratio 3. Liquidity 4. Financial leverage 5. R&D Expenditures 6. Profitability 7. Out‐of‐theordinaryevents/transactions 8. Cash flow analysis 9. Return on assets (ROA) 10. Return on equity (ROE)
b) Operationally 1. Number of days in accounts receivable and accounts receivable turnover 2. Number of daysin inventory and inventory turnover 3. R&D percentage ofrevenue 4. Organic growth vs. growth through mergers and acquisitions 5. Off‐balance sheetobligations
3. Recommendations on how the companies could improve ROE
4. Conclusion as to financial strengths and weaknesses of each company
In: Accounting
Ram Corporation purchased a new truck on January 1, 2020 for $50,000. The truck is expected to last five years with a residual value of $10,000. Using straight-line depreciation, show the effect on the income statement and balance sheet of this transaction over the next five years.
Income statement
2020 2021 2022 2023 2024
Depreciation expense $8000 $8000 $8000 $8000 $8000
Balance Sheet
2020 2021 2022 2023 2024
Equipment $ $ $ $ $
Less: accumulated
Depreciation ( ) ( ) ( ) ( ) ( )
Book value $ $ $ $ $
Part II – Chapter 8
Company A Company B Company C
Days sales in receivables 8.3 days 39.9 days 60.3 days
Days sales in inventory 2.3 days 45.8 days 95.8 days
Debt/equity ratio 34.8% 107.5% 62.3%
Times interest earned 14.5 times 7.8 times 4.5 times
Gross profit margin 37% 70% 20%
Price/earnings ratio 15 3 18
Bold the correct answer in each of the questions below.
1) Refer to the days sales in inventory. If one of the companies above is McDonald's, one is Apple, and one is BMW Auto Sales, which is likely BMW?
A B C
2) Which company is best able to meet its interest obligations?
A B C
3) If one of the companies above sells primarily on net 45 day sales terms with no discount offered for early payment, which is it likely to be?
A B C
4) Assume one company is McDonald's, one is Wal-Mart, and the other is a high end jeweler, which is likely the jeweler?
A B C
5) Which company has the least percentage of assets financed by owners?
A B C
6) Which company apparently has investors worried about its future?
A B C
In: Accounting
You are the Chief Financial Officer of Incomprehensible Technologies Inc. (ITI). The CEO has asked you to calculate the firm’s overall WACC. Your team of analysts has presented you with the following data:
Question 11: What is the company's cost of equity?
Multiple Choice
11.0%
14.6%
9.0%
12.6%
11.9%
Question 12: What is the company's cost of debt?
Multiple Choice
3.0%
5.0%
5.7%
6.0%
11.3%
USE THE FOLLOWING DATA FOR QUESTIONS 11-14
You are the Chief Financial Officer of Incomprehensible Technologies Inc. (ITI). The CEO has asked you to calculate the firm’s overall WACC. Your team of analysts has presented you with the following data:
Question 13: What is the cost of the company's Preferred Stock?
Multiple Choice
6.2%
3.8%
15.0%
4.4%
7.8%
USE THE FOLLOWING DATA FOR QUESTIONS 11-14
You are the Chief Financial Officer of Incomprehensible Technologies Inc. (ITI). The CEO has asked you to calculate the firm’s overall WACC. Your team of analysts has presented you with the following data:
Question 14: What is the company's WACC?
Multiple Choice
7.0%
8.2%
11.6%
8.9%
9.5%
In: Finance
How do each of the following transactions affect:
(1) the trade surplus or deficit for the United States AND
(2) capital inflows or outflows for the United States
a. A U.S. exporter sells software to Israel. She uses the Israeli
shekels received to buy stock in an Israeli company.
The U.S. export creates a trade (Click to select)deficitsurplus and
the purchase of Israeli stock creates a capital (Click to
select)outflowinflow.
NX (Click to select)>=< 0.
KI (Click to select)<>= 0.
NX + KI (Click to select)<>= 0.
b. A Mexican firm uses proceeds from its sale of oil to the United
States to buy U.S. government debt.
The purchase of Mexican oil creates a trade (Click to
select)deficitsurplus and the Mexican purchase of U.S. bonds
creates a capital (Click to select)inflowoutflow.
NX (Click to select)><= 0.
KI (Click to select)>=< 0.
NX + KI (Click to select)=>< 0.
c. A Mexican firm uses proceeds from its sale of oil to the United
States to buy oil drilling equipment from a U.S. firm.
The purchase of oil from Mexico and the Mexican purchase of
drilling equipment (Click to select)does createdoes not create a
trade (Click to select)deficit or surplussurplusdeficit and (Click
to select)does not createdoes create a capital (Click to
select)inflowinflow or outflowoutflow.
NX (Click to select)<>= 0.
KI (Click to select)=>< 0.
NX + KI (Click to select)=<> 0.
In: Economics
Globe-Chem Co. has a capital structure that consists of 40% debt and 60% equity. The firm's current beta is 1.10, but managment wants to understand Globo-Chem Co.'s market risk without the effect of leverage. 1. If global-Chem has a 35% tax rate, what is its unlevered beta? a. 0.81 b. 0.77 c. 0.62 d. 0.92 Now consider this case of another company: U.S. Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before tax cost of debt is 8%. and its tax rate is 35%. It curerntly has a levered beta of 1.10. The risk-free rate is 3% and the risk premium on the market is 7%. U.S. Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before-tax cost of debt in increase ton 10%. 2. First solve for the U.S. Robotics Inc's unlevered beta. 3. Relever U.S. Robtics Inc's beta using the firm's new capital structure. 4. Use U.S. Robtics Inc's levered beta under the new capital structure, to solve for its cost of equity under the new capital structure. 5. What will the firm's weighted average cost of capital be if it makes this change to its capital structure?
In: Finance
Budgets: Discussion question
RD Ltd. is in the process of preparing its budgets for 2020. The company produces and sells a single product, Z, which currently has a selling price of £100 for each unit.
The budgeted sales units for 2020 are expected to be as follows:
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
July |
Aug |
Sep |
Oct |
Nov |
Dec |
|
5,000 |
5,500 |
6,000 |
6,000 |
6,250 |
6,500 |
6,250 |
7,000 |
7,500 |
7,750 |
8,000 |
7,500 |
The company expects to sell 7,000 units in January 2021.
The selling price for each unit will be increased by 15% with effect from 1 March 2020.
1,000 units of finished goods are expected to be in stock at the end of 2019. It is company policy to hold a closing stock balance of finished goods equal to 20% of the following month’s sales.
Each unit of Z produced requires 3 kgs of material X, which currently costs £5 for each kg. The price for each kg is expected to increase by 10% on 1 June 2020.
Stock of raw material at the end of 2019 is expected to be 3,750 kgs. The company wishes to avoid any stock-outs and requires the closing stock of raw materials to be set at 20% of the following month’s production requirements.
A purchase of fixed asset will be made in March, £50,000 – payment will be made in four equal installments starting in June. Opening cash balance of £20, 000.
The production of each unit of Z requires 4 hours of skilled labour and 2 hours of unskilled labour. Skilled labour is paid at a rate of £10 for each hour and unskilled labour at £8 for each hour. Each worker is expected to work 40 hours each week, 48 weeks each year.
Taxation on 2019’s profit will be paid in March and this amounts to £15, 000. Fixed overhead including depreciation of £550 is £3,000 per month and this is expected to increase in May to £3,500.
Required:
Prepare the following budgets for the first six months of 2020.
(a) The sales budget (in value)
(b) The production budget (in units)
(c) The material usage budget (in value)
(d) The material purchase budget (in value)
(e) The direct labour budget (in hours)
(f) Cash budget
In: Accounting