Micro Bike Company has short term investments of $50, debt of $1,500, and preferred stock of $200. The equity of the Micro Bike has 100 shares. The company forecasts the following:
| 2015 | 2016 | 2017 | 2018 | ||
| Free Cash Flow | $30 | $90 | $130 | $210 | $220 |
| Target WACC | 10% | 10% | 10% | 10% | 10% |
| Free Cash Flow Growth | 15% | 200% | 44.4% | 61.5% | 4.8% |
a. What is the Present Value of Free Cash Flows?
b.What is the Present Value of the Horizon Value?
c. What is the estimated intrinsic value of the equity?
d. What is the estimated intrinic stock price?
plase show work ( the last colums is year 2019)
In: Finance
The effects of smoking on human performance was investigated using three tasks that differed in the level of cognitive processing that was required to perform them, with different participants serving in each task.
Pattern recognition task - participants had to locate a target on a screen
Cognitive task - participants were required to read a passage and then recall it at a later time
Driving simulation video game
In each case the dependent variable was the number of errors that the participant committed.
Participants were further divided into three Smoking groups
Group AS was composed of people who actively smoked during or just before carrying out the task.
Group DS participants were regular smokers who had not smoked for 3 hours before the task (D stands for delay).
Group NS were nonsmokers.
Pattern Recognition
NS: 9 8 12 10 7 10 9 11 8 10 8 10 8 11 10
DS: 12 7 14 4 8 11 16 17 5 6 9 6 6 7 16
AS: 8 8 9 1 9 7 16 19 1 1 22 12 18 8 10
Cognitive Task
NS: 27 34 19 20 56 35 23 37 4 30 4 42 34 19 49
DS: 48 29 34 6 18 63 9 54 28 71 60 54 51 25 49
AS: 34 65 55 33 42 54 21 44 61 38 75 61 51 32 47
Driving Simulation
NS: 15 2 2 14 5 0 16 14 9 17 15 9 3 15 13
DS: 7 0 6 0 12 17 1 11 4 4 3 5 16 5 11
AS:3 2 0 0 6 2 0 6 4 1 0 0 6 2 3
Compute a 3 (Smoking Group) x 3 (Task) ANOVA
Can one of you PLEASE explain how to put the 3 dependent variables into one column in SPSS?? I don't need help with the analysis.
In: Statistics and Probability
In: Advanced Math
A new fertilizer has been developed to increase the yield on crops, and the makers of the fertilizer want to better understand which of the two blends of this fertilizer are most effective for wheat, corn, and soy beans crops. They test each of the two blends on one sample of each of the three types of crops.
Inner Totals in ()
Figure 1 – Data for Example 1
Type of Crop | ||||
Blend | Wheat | Corn | Soy | Total |
Blend X | 23 (79) 56 | 28 (78) 50 | 66 (144) 78 | 301 |
Blend Y | 35 (65) 30 | 75 (107) 32 | 40 (88) 48 | 260 |
Total | 144 | 185 | 232 | 561 |
a. | At the 5% significance level, can you conclude there is a difference in the crop yields? | |||||||||
b. | At the 5% significance level, can you conclude there is a difference in the blend yields? | |||||||||
c. | At the 5% significance level, is there interaction between the blend and the type of crop? | |||||||||
In: Statistics and Probability
1. You are an investor evaluating a project which is going to take 8 years. The project will pay $500,000 at the beginning of each year starting a year from now. These payments will grow at 2% for the first two years, then 3.5% for the following two years and then stay consistent at 4% until the end of the project. In the last year of the project you will receive a lump sum of $1 million while also paying a lump sum of $200,000. If your expected retrun on this project is 12.5%, what is the PV of the project?
In: Finance
An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use a= 0.05 . Factor A is method of loading and unloading; Factor B is the type of ride.
| Type of Ride | |||
| Roller Coaster | Screaming Demon | Long Flume | |
| Method 1 | 44 | 53 | 48 |
| 46 | 45 | 44 | |
| Method 2 | 48 | 45 | 51 |
| 50 | 41 | 47 | |
Set up the ANOVA table (to whole number, but p-value to 2 decimals and F value to 1 decimal, if necessary).
| Source of Variation | Sum of Squares | Degrees of Freedom | Mean Square | F | P-value |
| Factor A | 1 | 1 | 1 | 0.1 | 0.75 |
| Factor B | 2 | ||||
| Interaction | |||||
| Error | |||||
| Total |
In: Statistics and Probability
2. Write a function that takes a tuple as an argument and returns the tuple sorted.
3. Write a statement that creates a dictionary containing the following key-value pairs:
'a' : 1
'b' : 2
'c' : 3
4. After the following code executes, what elements will be members of set3, ?
set1 = set([10, 20, 30, 40])
set2 = set([40, 50, 60])
set3 = set1.union(set2)
set4 = set1.intersection(set2)
set5= set1.difference(set2)
In: Computer Science
A shoe factory in Athens sells shoes for $50 per pair. The last worker hired produced an additional 8 pairs of shoes, and was paid $100 per hour.
(a) Should the rm hire more workers, re some workers, or keep the same number of workers? Explain why.
(b) Suppose one of the factory's machines breaks and cannot be replaced. Comment on how this will aect the productivity of each worker, and how this would aect the hiring decision of the factory. (Consider how the loss of the machine will aect the marginal product of labor.)
In: Economics
To borrow $500, you are offered an add-on interest loan at 8 percent. Two loan payments are to be made, one at six months and the other at the end of the year. Compute the two equal payments.
In: Finance
Suppose a 2 year 5% (annual coupon) bonds are selling at par (that is, for $100 of face value, the price is equal to $100) and 1 year zero coupon bonds has a yield to maturity of 7%.
(a) What are the 1-year and 2-year interest rates, r1 and r2,
respectively?
(b) What should be the price of a two year 8% coupon bond with a
face value of $100?
(c) What are the Durations of 5% coupon bonds and 8% coupon bonds? Which one has longer duration? What is the implication about interest rate risk?
(Please give the specific numbers of part c.)
In: Finance