You consider buying a share of stock at a price of $10. The stock is expected to pay a dividend of $1.00 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $12. The stock's beta is 1.0, r_f is 16%, and E[r_m] = 26%. What is the stock's abnormal return?

6. Calculate the concentration of H3O + or HO- , as indicated, when each of the strong acids below is dissolved in the indicated total volume of water.

a) 1.5 moles of HBr is dissolved in 4.0 L of H2O. [H3O + ] = _____________ moles/L

b) 1.0 mole of Ba(OH)2 is dissolved in 10.0 L of H2O. [HO-] = ______________ moles/L

A +2.00 nC point charge and -3.00 nC point charge are placed along the x-axis at  x = 1.0 m and x = 2.0 m, respectively. Where must a third charge, q, be placed along the x-axis so that it does not experience any net electric force due to the other two charges

?5

Which one of the following will decrease net working capital? Assume the current ratio is greater than 1.0.

Multiple Choice

A.Selling inventory at cost

B. Collecting payment from a customer

C.Paying a dividend to shareholders

D.Selling a fixed asset for less than book value

E. Paying a supplier for prior purchases

Design a welded compression member composed of double standard channels, placed face to face, using A36 steel. Length of the member is 7.5m and the maximum compressive factor force is 3R KN. Distance between centroid of the channels is to be 300mm. Design the section, end plates and the lacing system K=1.0

TAKE R =2071

MARGINAL ANALYSIS - Economics for Business Decision

You are a business owner of a firm that services trucks. A customer would like to rent a truck from you for one week, while you service his truck. You must decide whether or not to rent him a truck. You have an extra truck that you will not use for any other purpose during this week. This truck is leased for a full year from another company for $350/ week plus $.50 for every mile driven. You also have paid an annual insurance premium, which costs $70/ week to insure the truck. The truck has a full 100-gallon fuel tank. The customer has offered you $500 to rent the truck for a week. The price includes the 100 gallons of fuel that is in the tank. It also includes up to 500 miles of driving. The customer will pay $.50 for each additional mile that he drives above the 500 miles. You anticipate that the customer will bring back the truck with an empty fuel tank and will have driven more than 500 miles. You sell fuel to truckers at a retail price $3.35/gallon. Any fuel you sell or use can be replaced at a wholesale price of $2.95/gallon. The customer will rent a truck from another company if you do not accept the proposed deal. In either case, you will service his truck. You know the customer and are confident that he will pay all charges incurred under the agreement.

1. Should you accept or reject the proposed deal? Why, or why not? Show calculations.

2. Would your answer change if your fuel supplier limited the amount of fuel up to 100 gallons/ week you could purchase from him at the wholesale price? Explain.

A new American graduate is contemplating buying a Japanese, German, or an American car. No matter the type of car, he plans to buy a new one at the end of 8 years. Japanese car will cost $30,000 and have a fuel usage of 23 Miles Per gallon (mpg) for the first 2 years, and will decrease by 3% per year thereafter. Repair cost will start at $700 per year, and increase by 3% per year. At the end of year 8, the car can be sold for $5000. Insurance cost will be $700 for the first year, increasing by 2% per year thereafter.

A German car will cost $45,000 and have fuel usage of 21mpg for the first 5 years, and decrease by 1% thereafter to year 8. Repair cost will start at $1000 in year 1 and increase by 4% per year. It will have a salvage value of $7000 at the end of year 8. Insurance cost will be $850 the first year, increasing by 2% per year thereafter.
The American car will cost $35,000 and have fuel usage of 20mpg for the first 3 years, and will decrease by 3% per year thereafter. Repair cost will be $800 in year 1, increasing by 4% per year thereafter. Being an American, the graduate will price the pride of owning an American car at $0.4 for every 20 miles driven, increasing by 2% per year. Insurance cost will be $800 per year increasing by 2.2% per year. The car can be sold for $5500 at the end of year 8.
If the graduate anticipates driving 150000 miles by the end of year 8 and the average interest rate is expected to remain at 5% per year, which car is economically affordable based on present worth analysis? Assume fuel cost will be $3 per gallon in year 1 and increase by an average of 2% per year. Show all your workings.