In December of 1903, Wilbur and Orville Wright made history with their bi-plane contraption that managed to do the seemingly impossible: it gave man the ability to fly. The concept was so unearthly, in fact, that private aviation first took off not as a means of transportation, but as a sideshow of sorts. In those pioneer days, seeing a man use technology to overcome gravity was such a novelty that early aviators made their living mostly through exhibition flights.

Seven years after the Wright Brothers proved flight was possible, a car salesman by the name of Clyde Cessna found himself awestruck by one such exhibition in Oklahoma. He’d heard tales of men taking to the skies in these machines (and making thousands of dollars in the process), and now that he’d seen one in person he was certain: Clyde Cessna was going to build an airplane of his own.

The Cessna Aviation Company was an American general aviation aircraft manufacturing corporation headquartered in Wichita, Kansas. Cessna produced small, piston-powered aircraft, as well as business jets. For many years the company was one of the highest-volume producers of general aviation aircraft in the world. The company was founded in 1927.

The following information is available concerning a firm's capital:

Debt: 500,000 bonds with a face value of $1000 and an initial 20-year term were issued five years ago with a coupon rate of 8%. Today these bonds are selling for $846.30.

Preferred stock: 200,000 shares of preferred stock paying an annual dividend of $9.50 are outstanding. The shares currently trade at $79.16.

Common equity: Two hundred thousand shares of common stock are outstanding which are now selling for $22.50 per share. An annual dividend of $1.70 was just paid and is expected to grow indefinitely at 6%.

The combined federal and state tax rate is 40%.

Required:

Calculate the firm's WACC.

In the New York State "Win 4" game, four digits are randomly drawn, with replacement. The player chooses four digits and may pick from several types of bets:

a. "Straight": To win, the player's digits must match those drawn in the order they were drawn.

b. There are four kinds of "box" bets. In each, the player wins by matching the digits drawn in any order. "24-Way Box": The player's digits are all different. "12-Way Box": The player names one digit twice. "6-Way Box": The player names two different digits twice each. "4-Way Box": The player names one digit three times and a different digit once.

Find the probability of winning each of these bets.

Activity #1 - Defining a Brand Image

You may prepare this activity in the following formats: Word Document, PDF, or PowerPoint.

Phase one:

Research one of your favourite brands. Define their Why-How-What. (Note: Do your research! For example, read the brand's website for their mission statement)

Phase two:

Search for 6 images that visually define the brand. Be sure to match the look and feel with your value proposition. (Note: Do not select and use images that represent their logo and products)

Phase Three:

Choose a digital channel that would be appropriate for the brand to use for marketing and provide justification on why that channel would be appropriate for communicating their value proposition. Then provide a suggestion of what type of content they could create for that channel.

Language: C++
In your main(), use printf() to print out the floating point values for
   some hex data.
   a. To print 1.0, do
         printf("One:      %f\n",0x3FF0000000000000);
      The compiler will give you a warning about the argument being a different
      type than the format, but that is ok.
   b. To print 2.0, do
         printf("Two:      %f\n",0x4000000000000000);
      Remember, to multiply by two, you just add one to the exponent.
   c. Print 4.0, 8.0, and 16.0 (with nice labels, of course).
   d. We can also go the other way. To divide by two, just decreas the 
      exponent by one.  So for 1/2, do
         printf("Half:     %f\n",0x3FE0000000000000);
   e. Print 1/4, 1/8, 1/16.
   f. Negative values have a 1 in the leading bit instead of 0.  A leading 1
      in the bits for a hex digit has value 8, so -1.0 is BFF0000000000000.
      So to print -1.0, do
         printf("Neg One:      %f\n",0xBFF0000000000000);
   g. Print -2, -4, -8, -1/2, -1/4, -1/8 (with nice labels, of course).

A simple random sample of 50 items from a population with a standard deviation of 7, resulted in a sample mean of 38.

If required, round your answers to two decimal places.

a. Provide a 90% confidence interval for the population mean.

b. Provide a 95% confidence interval for the population mean.

c. Provide a 99% confidence interval for the population mean.

We discussed towards the end of last class (01-11-18) a Poisson problem. This an adaptation of that problem. There is evidence that suggests that one in 200 carry a defective gene that is implicated in colon cancer. In a sample of 1000 individual, a. What is the probability that none of them would have the noted defective gene? b. What is the probability that between 4 and 7 (both inclusive) will carry the defective gene? c. What is the probability that at least 8 carry the defective gene? Notes: First establish that one can use Poisson distribution model, and use Excel or web-published probability tables.

You have an outstanding fixed-for-fixed NOK/NZD swap for NOK 100 million, based on a historic spot rate of NOK/NZD 4 and initial seven-year swap rates of 7% (NZD, outflow) and 8% (NOK, inflow). The swap now has three years to go, and the current rates at NOK/NZD 4.5, 6% p.a. (NZD three years), and 5% p.a. (NOK three years). What is the market value of the swap contract in NOK?

John, Lorna and Gabriel are shareholders and directors of Basically Nice Furniture Pty Ltd, which makes and sells pine furniture. The company has a total of 15,000 shares. John, the Managing Director, has 5,500 shares, Lorna (who is John's wife), the Secretary, has 2,500 shares. Gabriel, a mere Director, has 4,000 shares. The remaining 3000 shares are held in small amounts by 10 other members of the company. John runs the factory that produces the furniture. Lorna runs the front office and handles all administrative duties. Gabriel runs the sales department and is also in charge of marketing. Recently the company prepared a tender for a government department to supply a large number of desks, tables and chairs. The government accepted the tender and offered to enter into a contract with Basically Nice Furniture Pty Ltd. Gabriel was excited about the success of the tender and was very keen for the company to take on the contract. However, John and Lorna did not think it would be a good idea to accept the offer by the government department. Lorna organised a company meeting in order to vote on the pending offer. At the meeting, John and Lorna voted against the offer to supply desks to the government department. Gabriel voted to accept the offer. The other shareholders also voted to accept the offer by the government department. The resolution was passed by vote of the majority that the company would not accept the offer to provide desks, tables and chairs to the government department. Gabriel was very upset that such a valuable opportunity to increase the company’s profits was being “thrown away”. He vociferously objected to the outcome of the vote. Upon hearing his objection, John and Lorna passed a resolution to vote Gabriel off the board of Directors. He was quickly replaced by the company's accountant who holds 300 shares. A few days after the vote, John and Lorna formed a partnership which then contracted with the government department. The contract was exactly the same as the one offered to Basically Nice Furniture Pty Ltd and involved the suppling a large number of desks, tables and chairs. The operations of the partnership are conducted on the premises of Basically Nice Furniture Pty Ltd. Also, the labour involved in making the desks, tables and chairs for the partnership is being done by the employees of Basically Nice Furniture Pty Ltd. The directors of Basically Nice Furniture Pty Ltd (John and Lorna and the Accountant) have also decided to reduce dividends to other shareholders and to increase the payments to the directors. Gabriel is understandably very upset with these developments. He has been organising with the other shareholders to try and find a legal solution to this situation. Upon learning that Gabriel was “making trouble”, John and Lorna called for meeting. The resolution at the meeting was to force Gabriel to sell his shares in the company. Gabriel refused to sell his shares and protested the resolution. However, the Directors of the company passed the resolution (with a majority of the votes) to compulsorily acquire Gabriel’s shares. Consider whether:

(a) John and Lorna have breached any of their duties as directors of the company.

(b) The company is able bring an action against John and Lorna.

(c) Any remedies available to Gabriel for the compulsory acquisition of his shares.