1. Friedman Manufacturing, Inc. has prepared the following information regarding two investments under consideration. Which investment is better, based on risk (as measured by the standard deviation) and return?

Calculate eight ratios ( min. one from every category) from the financial statements of any company for last two years and give interpretation. (Note: Upload images of the financial statements of a company with solution)

Multiple choice Questions:

1) A simple (but incomplete) definition of a/an______ is that it is a mathematical entity that has a specific magnitude and direction.

A. director B. aviator C. bisector D. scalar E. vector

2) It is a physical quantity expressible by a single real number whose value is independent of the coordinate system (of ordinary physical space). A ________can have a direction in an abstract space. For example, temperature on the Celsius scale: it can have positive or negative value. But many_________ quantities only have positive values like temperature on the Kelvin scale. A__________ can be regarded as a one-dimensional vector with the one-direction being in an abstract space, but in the usual way of speaking one would say it is NOT a vector.

A. director B. aviator C. bisector D. scalar E. vector

3)Vector components are computed by multiplying the magnitude (or length) of a vector by the cosines of the angles the vector makes with the positive coordinate directions of a:

A. circle B. coordinate system C. rotation D. square E. wheel

4) The components of multi-dimensional physical vectors:

A. are unique

B. can be chosen only two ways: the two ways will lead to different physical behavior

C. can be chosen in infinitely many ways: each way leads to a different physical behavior

D. can be chosen in infinitely many ways. However, the physics of the vector remains the same and in any problem the choice of components (i.e., the choice of a coordinate system) is arbitrary. But some choices make the problem a lot easier.

E. cannot be determined at all in principle

5) A vector of magnitude 20 is added to a vector of magnitude 25. The magnitude of this sum might be:

A.zero B.3 C.12 D.47 E.50

6) For general vectors A and B, the dot product A · B equals:

A) B · B

B) A · A

C) A · B^2

D) A^2 · B

7) A man walks 40 m on level ground to an elevator and then rises 70 m. What approximately is the magnitude of his displacement from the starting point?

A. 8m B. 110m C. 30m D. 6500m E. 80m

8) The eye of a hurricane passes over Bermuda moving 20.0 ◦ north of west at 40 km/h for 2 hours and then turns due north moving at 20 km/h. What is its displacement relative to Bermuda after 4 hours being at Bermuda: give distance from Bermuda and angle relative to north? Neglect the curvature of the Earth.

A firm has the following information for the last two years – all amounts are in U.S. dollars.

                                                This year         Last year

                                                2019                2018   

            Revenues                    99,000             90,000

            EBIT                            33,000             30,000

            EAT                             16,500             15,000

            EPS                             1.80                 1.50    

This firm’s Degree of Financial Leverage is:

The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.

Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)

Regression Statistics

Multiple R: 0.8436280

R Square: 0.7117080

Standard Error:

Observations: 24

Coefficients

Intercept:

Revenues:

The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.

Required:

Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R Square and Standard Error" to 7 decimal places, "Intercept and Revenues" to 4 decimal places.)

The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.

Required:

Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R Square and Standard Error" to 7 decimal places, "Intercept and Revenues" to 4 decimal places.)

The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.

Required:

Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)

REGRESSION STATISTICS
   MULTIPLE R ?
   R SQUARE    ?
   STANDARD ERROR    ?
   OBSERVATIONS    ?
   COEFFICIENTS
   INTERCEPT ?
   REVENUES ?

  In the last two years, a company incurred the following expenditure in relation to
the development of a new product:
1 Jan 2013 – 31 Dec 2014 (2 years) £1,440,000
The criteria for recognition as an intangible asset were satisfied from 1 Apr 2014.

For the year end, 31 Dec 2014, the intangible asset will be recognized in
Statement of Financial Position at?

Assume that the last two digits on a car number plate are equally likely to be any of the 100 outcomes{00, 01, 02, ........ 98, 99}. Peter bets Paul, at even money, that at least 2 of the next n cars seen will have the same last two digits. Does n=16 favour Peter or Paul? What value of n would make this a pretty fair bet?