Last year, Jimmy graduated  from First City  University and received USD 5,000 from his father as a graduation gift. Jimmy, , recently heard from a friend who earns a profit from investing in the bond market during this pandemic time.

JImmy does not know much about investing or how people actually “make money by investing”. He asked you to help him in making a wise investment plan.

Required:

1. Before investing any money, explain to Jimmy about the risk involved.

2. Calculate the expected rate of return Jimmy would receive if he buys bonds in Eplas bond. Eplas bond is a 15-year, USD1,000 par value bond that pays 5.5 percent interest annually. The market price of the bond is USD1,085.  

3. Determine the value of the bond given Jimmy required rate of return is 7 percent.

4. Jimmy’s father, Mr.Marc is valuing an investment that will pay him USD12,000 the first year, USD14,000 the second year, USD17,000 the third year, USD19,000 the fourth year, USD23,000 the fifth year, and USD29,000 the sixth year (all payments are at the end of each year). Determine the value of the investment to Mr.Marc now if the appropriate annual discount rate is 11%.

Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 14 percent return on its investment.

During the past week, management of the company’s Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the Northeast Division and the competitor:

Management has determined that in order to upgrade the competitor to Megatronics’ standards, an additional $150,000 of invested capital would be needed.

Required:

1. Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired.

2. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor?

3-a. Compute the ROI of the competitor as it is now and after the intended upgrade.

3-b. If ROI is used as the basis for evaluation, would Megatronics Corporation likely be in favor of the acquisition of the competitor?

4. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading.

5-a. Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

5-b. If divisional management is being evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of the competitor?

Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired. (Round your answers to 2 decimal places (i.e., .1234 should be entered as 12.34).)

Compute the ROI of the competitor as it is now and after the intended upgrade.

Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

Language HTML and Javascript

Here is a string: " Hi, my name is John. I am a student at Rutgers University. I am currently taking a Web Class."

1. Change "Rutgers University" to "RUTGERS UNIVERSITY"

2. Replace "Web Class" to "Web Client and Server side Programming"

6. The table below shows the projected free cash flows of an acquisition target. Estimate the following:

a) Terminal value at the end of 2025 based on the perpetual growth equation with a 4% perpetual growth rate

b) Maximum acquisition price (MAP) as of the end of 2020 at a 9% discount rate

YEAR                                                               2021    2022   2023   2024   2025
FREE CASH FLOW ($ thousands)                  -$500      $83    $87    $89     $92

The Present Value of $1 Table (Table 3) tells us:

Period (n)        Present Value Factor at 9% Discount Rate
1                                                          .917
2                                                          .842
3                                                          .772
4                                                         .708
5                                                          .650

This problem involves normalizing a sample proportion.

6.    Past data has shown that 20% of all students graduating from XYZ University go on to do post-graduate work. A random sample of 700 students was taken frorn the university population.

1. Find the probability that the sample proportion of students going on to do postgraduate work is greater than 24%. (Hint: Note that 20% is the population proportion, and 24% is the sample proportion.)
2. State the numerical value of the standard error of the proportion.

This problem involves a test in which two independent populations are involved and the population standard deviations are known.

Your University wish to determine how alcohol consumption patterns among students impact their GPAs. You and your classmates’ task (as a group) is to discuss and formulate a RESEARCH PROPOSAL, proposing how the research would be conducted, from start to completion, step-by-step, in order to ultimately produce a useful and dependable report that would guide the University in introducing positive measures that improve students’ academic qualities. Among many things, you and your classmates would definitely want to propose the inclusion of any descriptive statistics and tests that are useful in uncovering the relationship between alcohol consumption patterns and GPAs achieved.

(1 point) Rework problem 29 from section 2.3 of your text, involving the selection of officers in an advisory board. Assume that you have a total of 11 people on the board: 5 out-of-state seniors, 2 in-state seniors, 2 out-of-state non-seniors, and 2 in-state non-seniors. University rules require that at least one in-state student and at least one senior hold one of the three offices. Note that if individuals change offices, then a different selection exists.

In how many ways can the officers be chosen while still conforming to University rules?

William has to make rental payments of $1,000 at the start of every month, throughout the four-year duration of his university course. His university fees are $4,000 to be paid at the start of each year. He earns $1,500 per month (paid at the end of each month) from a part-time job. Assume an interest rate of 8% p.a. and that he keeps the part-time job for the next four years. How much money, in present value terms, can he withdraw each month for the next four years?

Granger Stokes, managing partner of the venture capital firm of Halston and Stokes, was dissatisfied with the top management of PrimeDrive, a manufacturer of computer disk drives. Halston and Stokes had invested $20 million in PrimeDrive, and the return on their investment had been below expectations for several years. In a tense meeting of the board of directors of PrimeDrive, Stokes exercised his firm’s rights as the major equity investor in PrimeDrive and fired PrimeDrive’s chief executive officer (CEO). He then quickly moved to have the board of directors of PrimeDrive appoint himself as the new CEO. Stokes prided himself on his hard-driving management style. At the first management meeting, he asked two of the managers to stand and fired them on the spot, just to show everyone who was in control of the company. At the budget review meeting that followed, he ripped up the departmental budgets that had been submitted for his review and yelled at the managers for their “wimpy, do nothing targets.” He then ordered everyone to submit new budgets calling for at least a 40% increase in sales volume and announced that he would not accept excuses for results that fell below budget. Keri Kalani, an accountant working for the production manager at PrimeDrive, discovered toward the end of the year that her boss had not been scrapping defective disk drives that had been returned by customers. Instead, he had been shipping them in new cartons to other customers to avoid booking losses. Quality control had deteriorated during the year as a result of the push for increased volume, and returns of defective disk drives were running as high as 15% of the new drives shipped. When she confronted her boss with her discovery, he told her to mind her own business. And then, to justify his actions, he said, “All of us managers are finding ways to hit Stokes’s targets.”

Required:

Is Granger Stokes using budgets as a planning and control tool?

What are the behavioral consequences of the way budgets are being used at PrimeDrive?

What, if anything, do you think Keri Kalani should do?

A study is done to determine if students in the California state university system take longer to graduate, on average, than students enrolled in private universities. One hundred students from both the California state university system and private universities are surveyed. Suppose that from years of research, it is known that the population standard deviations are 1.5231 years and 1 year, respectively. The following data are collected. The California state university system students took on average 4.6 years with a standard deviation of 0.8. The private university students took on average 4.2 years with a standard deviation of 0.3. Conduct a hypothesis test at the 5% level. NOTE: If you are using a Student's t-distribution for the problem, including for paired data, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.)

-state the null hypothesis

-state the alternative hypothesis

-In words, state what your random variable X_state − X_private  represents.

-State the distribution to use for the test. (Round your answers to two decimal places.)

X_state − X_{private ~ __ ( __ , __ )}

_-What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)
-What is the p-value? (Round your answer to four decimal places.)
-Sketch a picture of this situation. Label and scale the horizontal axis and shade the region(s) corresponding to the p-value. (Upload your file below.)

-(i) Alpha (Enter an exact number as an integer, fraction, or decimal.)
α =

-decision rejected or or do not reject