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.

Data set: 0, 3, 7, 8, 11, 17, 25, 42, 50, 60, 100

1)Using Excel, compute the population mean and standard deviation.

2)How many samples of size 3 can you generate out of the population?

3)List all possible samples of size 3 and for each one compute the sample mean.

4)Using the Randbetween function on Excel, select one random sample, and report its mean and standard deviation.

5)For that one sample you have selected, build a 90% confidence interval. Does the interval contain the value of the population mean?

6)Build a 90% confidence interval for each and every sample. What is the proportion of intervals that contain the value of the population mean?

7)Build a relative frequency distribution of the sample means, and build the histogram.

8)The relative frequency distribution of the sample means is known under another name. Which one?

9)Compute the mean and standard deviation of the relative frequency distribution. What do you observe?

10)Can you relate the standard deviation of the relative frequency distribution to the population standard deviation? If so, what is the relationship?

An article in the Australian Journal of Agricultural Research, “Non-Starch Polysaccharides and Broiler Performance on Diets Containing Soyabean Meal as the Sole Protein Concentrate” (1993, Vol. 44, No. 8, pp. 1483–1499) determined the essential amino acid (Lysine) composition level of soybean meals are as shown below (g/kg):

Round your answers to 2 decimal places.

(a) Construct a 95% two-sided confidence interval for σ2.

≤σ2≤

(b) Calculate a 95% lower confidence bound for σ2.

≤σ2

(c) Calculate a 90% lower confidence bound for σ.

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.4%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15% 44% Bond fund (B) 8% 38% The correlation between the fund returns is 0.0684. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) What is expected return what is standard deviation

Suppose seven individuals enjoy going to the comedy club. Their demand is as follows.

If the comedy club had a monopoly and a marginal cost of $7 per entrant, the comedy club would sell_____ tickets if it could charge only one price.

Sterling is out to purchase bottles of vodka (q1) and black turtlenecks (q2). The price of vodka is p1 = 4 and the price of turtlenecks is p2 = 1. However, the store also offers a bulk discount on vodka: after purchasing the first 5 bottles, any additional bottles purchased are 50% off (for example, 8 bottles of vodka and 8 turtlenecks would cost 4 × 5 + 2 × 3 + 2 × 8 = 42). Assume Sterling starts with Y = 40 dollars in income. (

a) What is the maximum number of turtlenecks he can afford? What is the maximum number of bottles of vodka? If he bought exactly 5 bottles of vodka, how many turtlenecks could he afford?

(e) Ray, on the other hand, thinks vodka and turtlenecks are perfect complements, and always wants exactly twice as many turtlenecks as bottles of vodka. He also has Y = 40 dollars. Write down a utility function that describes his preferences. Re-draw the budget constraint from part (a) and add indifference curves corresponding to his preferences. How many bottles of vodka and how many turtlenecks will he buy?

(f) Last, consider Mallory. We do not know Mallory’s specific utility function, but we do know that her preferences are monotonic and strictly convex (i.e., they have a strictly diminishing MRS). Is it possible that Mallory will buy exactly 5 bottles of vodka? Justify your answer with a sketch.

Find the expected count and the contribution to the chi-square statistic for the (C,E) cell in the two-way table below

D E F G Total

A 35 30 44 41 150

B 78 90 67 58 293

C 19 38 26 32 115

Total 132 158 137 131 558

Round your answer for the expected count to one decimal place, and your answer for the contribution to the chi-square statistic to three decimal places.

Expected count =

contribution to the chi-square statistic =

Suppose your company needs to raise $50 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 7 percent and you’re evaluating two issue alternatives: a semiannual coupon bond with a 7 percent coupon rate and a zero-coupon bond. Your company’s tax rate is 21 percent. Both bonds would have a par value of $1,000.

a. How many of the coupon bonds would you need to issue to raise the $50 million? How many of the zeroes would you need to issue?

b. In 30 years, what will your company’s repayment be if you issue the coupon bonds? What if you issue the zeroes?

c. Based on your answers in (a) and (b), why would you ever want to issue the zeroes? To answer, calculate the firm’s after-tax cash outflows for the first year under the two different scenarios. Assume the IRS amortization rules apply for the zero-coupon bonds.

Chen Grocery recorded sales for January, February, and March as RM22,000, RM36,000 and RM50,000, respectively. For any given month of sales, the following percentages are received over time in cash: 60% in cash from that same month of sales; 30% in cash from the previous month's sales; and 10% in cash from the sales from two months ago.

What amount of cash will Chen Grocery received during February and March respectively?

Select one:

a. RM28,200 and RM43,000

b. RM64,200 and RM93,000

c. RM36,000 and RM50,000

d. RM30,400 and RM43,000

You decide you want your child to be a millionaire. You have a son today and you deposit $10,000 in an investment account that earns 7% per year. The money in the account will be distributed to your son whenever the total reaches $1,500,000. How old will your son be when he gets the money (rounded to the nearest year)?

Select one:

a. 74 years

b. 82 years

c. 49 years

d. 60 years

A financial advisor tells your parents that they can make you a millionaire if your parents just start saving early. Your parents decide to put an equal amount in the beginning of each year into an investment account that earns 7 interest per year, starting on the day you is born. How much would your parents need to invest each year (rounded to the nearest ringgit to accumulate a million for you by the time your age reach 35 years old? (Your last deposit will be made on his 34th birthday.)

Select one:

a. RM12,500

b. RM7,910

c. RM6,760

d. RM20,347

In a stream of past dividends, the initial dividend is RM0.75 and the most recent dividend is RM1.25. The number of years between these two dividends (n) is 8 years. What is the average growth rate during this eight-year period? Use a calculator to determine your answer.

Select one:

a. 6.62%

b. 6.72%

c. 6.59%

d. 6.69%

You borrow RM30,000 and agree to pay it off with one lump sum payment of RM40,000 in 6 years. What annual rate of interest will you be charged?

Select one:

a. 5.50%.

b. 5.91%.

c. 4.50%.

d. 4.91%.

1. Stock Options Worksheet - Pfizer

2. Identify the stock and its ticker symbol that you are using in this assignment. Provide its last traded price.

3. Company Name	Ticker Symbol	Last Traded Price

4. Obtain one of each for Call Option quotes and Put Option quotes. The TWO quotes must meet the following two criteria:
   1. The strike price is approximately equal to the stock’s last traded price you wrote down earlier on your note paper.
   2. The expiry date is in three to six weeks.

5. Call Option

   Expiry (Month/Year)
   Strike	Symbol	Last	Open Interest

   Put Option

   Expiry (Month/Year)
   Strike	Symbol	Last	Open Interest

6. Answer the following questions:
   1. What are the intrinsic values of each option?
7. 2. What are the option time values of each option?
8. 3. Assume each option’s contract size is 100 hundred shares. Given the holdings of this stock in your individual portfolio, describe an option strategy utilizing calls. Discuss the costs incurred and possible benefits of such a strategy.