Jiminy’s Cricket Farm issued a 30-year, 6 percent semiannual coupon bond 4 years ago. The bond currently sells for 105 percent of its face value. The company’s tax rate is 23 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 67 percent of par.

A. What is the company’s total book value of debt?

B. What is the company’s total market value of debt?

C. What is the aftertax cost of debt?

Jiminy’s Cricket Farm issued a 20-year, 5 percent semiannual coupon bond 2 years ago. The bond currently sells for 96 percent of its face value. The company’s tax rate is 21 percent. The book value of the debt issue is $55 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $30 million, and the bonds sell for 67 percent of par.

What is the company’s total book value of debt?

What is the company’s total market value of debt?

What is the aftertax cost of debt?

You have just arrived at a SnappyPrints Inc., a maker of photo printers.  You are working in the Financial Planning department and have joined a team conducting capital budgeting analysis. Snappy is considering two new projects. Project Mini Printer (PMP) and Project High Speed Printer (HSP).  The WACC is 10%.

You will need to decide which project should be chosen.  Use Ch11 text and slides as a guide.

                                   0                      1                      2                      3

                                   |                      |                      |                      |

Project PMP ($    -150                   40                   75                   100

Project PHS ($)   -150                   65                   75                    85

Answer the following questions:

1.     What is capital budgeting?  Are there any similarities between a firm’s capital budgeting decisions and an individual’s investment decisions?

2.     What is the difference between independent and mutually exclusive projects?  Between projects with normal and non-normal cash flows?

3.     Define the term NPV. What is each project’s NPV? According to NPV, which project(s) should be accepted if they are independent? Mutually exclusive.

4.     How would the NPV’s change if the cost of capital changed?

5.     Define the term IRR. What is the IRR of each project?

6.     What is the logic behind the IRR method?  According to IRR, which project(s) should be accepted if they are independent?  Mutually exclusive?

7.     Calculate and draw NPV profiles for Projects L and S. (Use slides as a guide) Do the NPV profiles cross? If so, what is the crossover rate?

8.     Look at your NPV profile graph without referring to the actual NPVs and IRRs.  Which project(s) should be accepted if they are independent?  Mutually exclusive?  Explain.

9.     What is the underlying cause of ranking conflicts between NPV and IRR?

10.  What is the reinvestment rate assumption, and how does it affect the NPV versus IRR conflict?

11.  Which method is the best?  Why?

12.  Define the term modified IRR (MIRR).  What is the MIRR for each project?

13.  What are the MIRR’s advantages and disadvantages as compared to the NPV?

14.  What is the payback period?  Find the discounted and regular paybacks for the Projects.

15.  What is the difference between the regular and discounted payback methods?

16.  What are the two main disadvantages of discounted payback?  Is the payback method useful in capital budgeting decisions?  Explain.

Upon further analysis, SnappyPrints believes that sales of the new High-Speed Printer would cannibalize the sales of its existing I-Phone Rapid Print Accessory by 50%, resulting in lost annual cash flow of $25.  

17. How can we define/what do we call this effect?
18. Should this effect be included in the cash flow projections?   
19. If so, which project should be accepted?  

Write a program that calculates the floor of a decimal number as defined here. Basically the Floor of any decimal number x, is the nearest whole number less than or

equal to x. ( Code Should Be In C++)

Requirements

1) You must implement a function to calculate the floor (you cannot use C++'s floor function). Name it floorAndError). It will have a return value and a single parameter

2) The program will ask the user to input a number (let's call this variable userInput) in main

3) The number will be passed to floorAndError by Reference and no other variables should be passed in

4) The function should change the userInput variable to the nearest whole number less than or equal to the original value of userInput that was inputted by the user. Therefore if the user inputted 4.3 into the variable userInput, after the function runs userInput will have the value 4.0. (note if the user enters -4.3 the floor is actually -5, think about how you might do this)

5) The function should return how much the value was changed by, i.e., the difference the new value of userInput and the old value of userInput. SO if the user inputted 4.3 the function will return a value equal to 4.0-4.3= -.3

6) The program should define the function prototype above main and the function definition after main

7) All the program input and output should occur in main

8) The function comments must have a pre condition and post condition both at the function prototype and the function definition

9) All the rest of the code should include comments too

1. A loan is to be repaid by twenty end of quarter payments of $1,000. The interest rate for the first two years is 6% convertible quarterly, and last three years is 8% convertible quarterly. Find the outstanding loan balance just after the 5^th payment.

Please don't use Excel! I'm looking to learn how to do it with the formulas.

1. Subjects in a verbal learning study learned two equivalently difficult words to a criterion of one complete trial through the list without error. In one condition, the subjects were tested with a vocal of the song “Tomorrow” from the musical Annie as background music; in the other condition, the song and its loudness were the same, but the music was an instrumental arrangement. The dependent variable was trials to criterion. Conditions were counterbalanced so that half of the subjects had the instrumental condition first and half had the vocal first. Were there differences in learning under the two different conditions?

Subject                              Vocal                          Instrumental

            1                                  18                                            13

            2                                  13                                            9

            3                                  22                                            17

            4                                  9                                              13

            5                                  10                                            10

            6                                  18                                            14

            7                                  16                                            21

            8                                  18                                            11

            9                                  8                                              5

            10                                19                                            13

            11                                22                                            16

            12                                16                                            11

            13                                25                                            19

            14                                20                                            15

            15                                9                                              7

Independent variable/s:

Levels of independent variable/s:

Dependent variable/s:

Test to use:

Does the type of background music affect the number of trials needed to learn a list of words?

Value of YOUR test statistic (from your print-out):

p-value from test:

Show all steps with answers so I can understand! Thanks

A=[ 7 8 -2 -6 7 4 1 ; 2 4 -4 -13 9 9 -12 ; 6 6 0 -9 8 9 -4 ; 1 8 -14 -22 5 8 -1 ; 4 9 -10 -14 7 4 -1]

B=[ 19 4 4 14 -3 -7 -5 ; 21 -6 -5 10 14 -2 4 ; 22 -4 5 13 5 -6 4 ; 41 20 0 26 11 -1 -27 ; 29 14 -2 20 3 -4 -19]

Remark: You may only use rref , or commands that are covered in our MATLAB guides, and no other special MATLAB functions for this problem.

(a) (3 points) Find a basis for Col(A) and determine its dimension.

(b) (5 points) Find a basis for Nul(A) and determine its dimension.

(c) (3 points) Find a basis for Row(A) and determine its dimension.

(d) (5 points) Find a basis for the left nullspace of A and determine its dimension.

(e) (2 points) Find a basis for Col(B) and determine its dimension.

(f) (6 points) Determine whether Col(A) = Col(B), i.e. determine whether the two given subspaces of R 5 are the same or not. If not, find a vector v

that belongs in one of the subspaces and not the other.

(g) (6 points) Determine whether Nul(A) = Nul(B). If not, find a vector v that belongs in one of the subspaces and not the other.

Determine the labor costs required to manufacture the 100^th item if the first item requires 50 days to produce and the learning curve is 82%. The manufacturing process requires two 9-hour shifts working each day, with 8 employees per shift. The employees are paid $17.50 per hour.

---Find the 98% confidence interval for the difference between two means based on this information about two samples. Assume independent samples from normal populations. (Use conservative degrees of freedom.) (Give your answers correct to two decimal places.)

---Find the value of t for the difference between two means based on an assumption of normality and this information about two samples. (Use sample 1 - sample 2. Give your answer correct to two decimal places.)

---If a random sample of 20 homes south of a town has a mean selling price of $145,375 and a standard deviation of $4825, and a random sample of 23 homes north of a town has a mean selling price of $148,550 and a standard deviation of $5925, can you conclude that there is a significant difference between the selling price of homes in these two areas of the town at the 0.05 level? Assume normality.

(a) Find t. (Round your answer to two decimal places.)


(ii) Find the p-value. (Round your answer to four decimal places.)

---Twenty laboratory mice were randomly divided into two groups of 10. Each group was fed according to a prescribed diet. At the end of 3 weeks, the weight gained by each animal was recorded. Do the data in the following table justify the conclusion that the mean weight gained on diet B was greater than the mean weight gained on diet A, at the α = 0.05 level of significance? Assume normality. (Use Diet B - Diet A.)

(a) Find t. (Give your answer correct to two decimal places.)


(ii) Find the p-value. (Give your answer correct to four decimal places.)

Book: Operations and Supply Chain Management Jacobs & Chase 14e

A manager is trying to decide whether to buy one machine or two. If only one is purchased and demand proves to be excessive, the second machine -can be pur­chased later. Some sales will be lost, however, because the lead time for producing this type of machine is 6 months. In addition, the cost per machine will be lower if both are purchased at the same time. The probability of low demand is estimated to be 0.20. The after-tax net present value of the benefits from purchasing the two machines together is $90,000 if demand is low and $180,000 if demand is high.

If one machine is purchased and demand is low, the net present value is $120,000. If demand is high, the man­ager has three options. Doing nothing has a net present value of $120,000; subcontracting, $160,000; and buying the second machine, $140,000.

1. Draw a decision tree for this problem.
2. How many machines should the company buy
   initially? What is the expected payoff for this
   alternative?