Questions
Worst Buy Company has had a lot of complaints from customers of late, and its stock...

Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $3 per share. It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 120 shares.

a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.)

b. What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places.)

c. Because investors often have a negative reaction to a reverse stock split, assume the stock only goes up to 80 percent of the value computed in part b. What will the stock’s price be? (Do not round intermediate calculations and round your answer to 2 decimal places.)

d. How has the total value of Dean Smith’s holdings changed from before the reverse stock split to after the reverse stock split (based on the stock value computed in part c)? To get the total value before and after the split, multiply the shares held times the stock price. (Input the amount as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places.)

In: Finance

Worst Buy Company has had a lot of complaints from customers of late, and its stock...

Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $2 per share. It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 150 shares.

a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.)

b. What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places.)

c. Because investors often have a negative reaction to a revere stock split, assume the stock only goes up to 90 percent of the value computed in part b. What will the stock’s price be? (Do not round intermediate calculations and round your answer to 2 decimal places.)

d. How has the total value of Dean Smith’s holdings changed from before the reverse stock split to after the reverse stock split (based on the stock value computed in part c)? To get the total value before and after the split, multiply the shares held times the stock price. (Input the amount as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places.)

In: Finance

Capacity planning is critically important in operations and supply chain management. Here are some capacity management...

Capacity planning is critically important in operations and supply chain management. Here are some capacity management principles I have learned over the years working in various Operations Management roles. Can you think of a way that one or more of these principles could be applied in your work environment to improve throughput? a. Constantly hone the demand forecast and take action to meet demand spikes before they happen; b. Monitor utilization and take action if it is trending upward and there is no reason believe this trend will not continue; c. Use FIFO (First-In-First-Out) wherever possible; d. Order materials on as close to a real-time basis as possible, being cautious about quantity discounts; e. Try not to change factors around in the organization constantly, as this becomes confusing and learning how factors relate to outcomes becomes difficult; f. Move toward one-piece flow, though one-piece flow may not make sense in all cases; move away from large batches; g. Look for bottlenecks and take action to eliminate them; h. Look for ways of streamlining the operation before investing in capital; i. Invest in capital if necessary but sell capital only when the operation is actually closed unless an entire product line or other large-scale change has occurred;

Did you encounter another principle of capacity planning and management that you find particularly intriguing or applicable to your work environment?

In: Operations Management

A newly issued bond pays its coupons once a year. Its coupon rate is 4.1%, its...

A newly issued bond pays its coupons once a year. Its coupon rate is 4.1%, its maturity is 15 years, and its yield to maturity is 7.1%.


a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.1% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If you sell the bond after one year when its yield is 6.1%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment.

Tax on interest income $
Tax on capital gain $
Total taxes $   

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)


After-tax holding-period return __________  %

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 6.1% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 2.1% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)


Realized compound yield before taxes ________%

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax two-year realized compound yield _________ %

In: Finance

Which one of the following types of securities has tended to produce the lowest real rate...

Which one of the following types of securities has tended to produce the lowest real rate of return for the period 1969 through 2010?

A. Real Estate

B. Long-term government bonds

C. Long-term corporate bonds

D. Stocks

E. U.S. Treasury bills

In: Finance

. The amount spent in billions for online ads per year is shown below. Construct a...

. The amount spent in billions for online ads per year is shown below. Construct a time series plot of the data and describe the trend. please help with graphing and explaining

year 2010 2011 2012 2013 2014 2015
amount $68.4 $80.2 $94.2 $106.1 $119.8 $132.1

In: Statistics and Probability

What is the regression model for the data? Is this a good model? Year 2006 =...

What is the regression model for the data? Is this a good model?

Year 2006 = 8,860 Students

2007 = 9,056

2008 = 9,050

2009 = 9,429

2010 = 9,407

2011 = 9,352

2012 = 9,608

2013 = 10,107

2014 = 10,382

2015 = 10,340

2016 = 10,805

2017 = 11,034

2018 = 11,639

In: Statistics and Probability

The Affordable Health Care Act of 2010 provides an interesting dichotomy concerning the role of the...

The Affordable Health Care Act of 2010 provides an interesting dichotomy concerning the role of the Federal Government in our personal lives relative to social health insurance, versus its' interest in assuring fair and equitable markets in the Healthcare Industry. Discuss the merits of the role of the Federal Government in this context.

In: Finance

The Affordable Health Care Act of 2010 provides an interesting dichotomy concerning the role of the...

The Affordable Health Care Act of 2010 provides an interesting dichotomy concerning the role of the Federal Government in our personal lives relative to social health insurance, versus its' interest in assuring fair and equitable markets in the Healthcare Industry. Discuss the merits of the role of the Federal Government in this context.

In: Finance

In 2010, OSHA allowed the federal alternative work procedures to expire and redefined residential construction. Currently...

In 2010, OSHA allowed the federal alternative work procedures to expire and redefined residential construction. Currently all workers must adhere to the standard. Do you agree with this? Take a position. In addition, what is different about residential construction vs. commercial construction - in your mind and in the regulations?

In: Civil Engineering