A share of stock with a beta of 0.67 now sells for $51. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 4%, and the market risk premium is 9%. a. Suppose investors believe the stock will sell for $53 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? What will investors do? (Do not round intermediate calculations. Round your opportunity cost of capital calculation as a whole percentage rounded to 2 decimal places.) b. At what price will the stock reach an “equilibrium” at which it is perceived as fairly priced today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Design the logic in pseudocode for Bugz App software company that sells a software package
as follows.
1. The retail price of the package is $99
2. Quantity discounts are given on purchases of 10 or more units as follows The program
must allow the user to enter the customer’s name and number of units purchased, and
output the original cost of the units purchased, the percentage discount given, the dollar
amount of the discount given, and the final cost after discount.
1. If the customer purchases up to 19 units, they receive a discount of 20%
2. 20 to 49 units – discount of 30%
3. 50 to 99 units – discount of 40%
4. 100 or more units – discount of 50%

Suppose that Coca-Cola is considering a new capital budgeting project. The project will use debt with maturities of 15 years. To determine the cost of debt for the project, an analyst at Coca-Cola looks at currently trading Coca-Cola debt. The analyst is looking at a Coke bond that trades today for $984.00. This bond has an annual coupon rate of 8.00%, face value of $1,000, and will mature in 15 years. The marginal tax rate for Coca-Cola is 38.00%.

What is the after-tax cost of debt for Coca-Cola?

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

The Behavioral Risk Factor Surveillance System (BRFSS) is an annual telephone survey designed to identify risk factors and report emerging health trends in the population of adults in the U.S. The following table summarizes one variable for the respondents.

(a) (1 point) What proportion of the individuals in the survey reported good health? Report the proportion to four decimal places.
(b) (1 point) Suppose that the standard error for the proportion in (a) is 0.0032 and a normal model may reasonably be used. Create a 99% confidence interval for the proportion of U.S. adults who report their health status as good. (Be careful not to mix up percents and proportions in this question.) Recall the general construction of the bounds of the confidence interval follows the formula: point estimate±z∗·SE.
(c) (1 point) Write a sentence that interprets your confidence interval in the context of the data.
(d) (1 point) If you were to construct a 95% confidence interval instead of the 99% CI in (b), determine one thing that would change in your construction.
(e) (1 point) If you were to construct a 95% confidence interval instead of the 99% CI in (b), determine one thing that would stay the same in your construction.

ABC Company’s fiscal year ends June 30. The company began construction of a new manufacturing plant on December 1, 2017. On this date, the company had the following transactions:

        Excavation work began during the first week in December with payments made to the contractor as follows:

        The building was completed on June 30, 2018 – the last day of the company’s fiscal year.

To finance construction, ABC borrowed $600,000 (due in 10 years, 8%, payable annually on December 1) from the bank on December 1, 2017. The company had no other loans outstanding.

Calculate the weighted average accumulated expenditures.

Calculate avoidable interest.

Calculate actual interest.

Prepare a schedule indicating the amount of interest to be capitalized.

Using the attached T-account template, prepare the entry to recognize each of the cash transactions indicated above and the recognition of the completion of the construction project.

ABC hotel has 200 rooms and has a policy to determine its room rates based on consumers capacity to pay. For example busniess clients pay $1,200 per night and group tours $900 per night. The incremental cost of servicing a room is worked out at $110 per room. On average, most guest stay for three (3) nights. Rooms division manager is trying to establish if four (4) week advance reservation should be taken for a group booking of 40 rooms and three (3) nights of 7th , 8th and 9th June 2018. According to the reservation record, 80 rooms for the three (3) nights of 7th , 8th , and 9th , June 2018 are already booked by various business clients, and the historical trends of the past four (4) years suggest that 90% of the remaing 120 rooms would be sold to other busniess clients. Your are required to b) In the highly competitive environment, tourism and hospitality busniess can aspire to optimise revenue for the long term survival. Discuss " one pricing strategy " and its effect on tourism and hospitality businesses as a whole focus on the pricing strategy in tourism and hospitality business and highlight their strengths and weaknesses as reported in the published literature.

In accordance with the current Conceptual Framework, define liability as one of the five elements of the statutory financial statements and outline its recognition criteria.

Further, explain whether or not you would recognise each of the following independent items as a liability, by reference to the abovementioned liability definition and recognition criteria:

1. Your company has a 30-year history of donating $5 000 each year to The Salvation Army. So far, no amount has been paid in the current year and nothing has been recorded in the accounts.
2. Your rich uncle has lent $30 000 to your small business of delivery service (a single proprietorship) to buy a van, and told you to repay him whenever you like.

3. Yesterday a court of law ordered you and all your business partners to repair significant environmental damage that your partnership firm had caused to a park next to your firm’s premises. However, you do not yet have any idea as to how much this repair work will cost for your partnership business for which negotiations are being planned for two additional loans, each worth $3 million, from City Bank and ZNA Bank respectively.

Your company, XYZ, Inc., wants to create an outdoor area adjacent to its office building for its employees to enjoy during lunch, breaks or during non-business hours.The city, Village Township, has restrictions of the use of the land (zoning) and the type of structures that may be erected on the land. The plans that your company have created is in violation of the city ordinances. Your company does not want to spend a lot of money to resolve negotiate with the city regarding the ordinance problem because the plans and cost of building the park are over budge. You are in charge of helping find a resolution for this conflict with the city. You report directly to the CEO of XYZ, Inc., and she has asked you to research whether arbitration, mediation or litigation would be in the best interest of both parties to resolve this conflict.

1. Differentiate the roles of a mediator and arbitrator so your boss clearly understand the difference.
2. Explain all three options (arbitration, mediation, and litigation) in relation to the conflict with they city.
3. Explain which option you think is best for the company to resolve this conflict.
   • Describe why it's the best option for the company based on the facts related to the company and the conflict.
   • Provide references to resources that help support for your position.

Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams expects to manufacture and sell 55,500 parts in the coming year. While the demand for Williams’s part has been growing in the past 2 years, management is not only aware of the cyclical nature of the automobile industry, but also concerned about market share and profits during the industry’s current downturn.

Required:

1. Determine the price for the part using a markup of 39% of full manufacturing cost.

2. Determine the price for the part using a markup of 20% of full life-cycle cost.

3. Determine the price for the part using a desired gross margin percentage to sales of 40%.

4. Determine the price for the part using a desired life-cycle cost margin percentage to sales of 27%.

5. Determine the price for the part using a desired before-tax return on investment of 14%.

6. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5.

Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 18,000 T-shirts at $21 each in the coming year. Product costs include:

Variable selling expense is the redemption of a coupon, which averages $1.05 per T-shirt; fixed selling and administrative expenses total $11,000.

Required:

1. Calculate the following values:
Round dollar amounts to the nearest cent and round ratio values to three decimal places (express the ratio as a decimal rather than a percentage).

2. Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If required, round your per unit answers to the nearest cent.

3. What if the per unit selling expense increased from $1.05 to $2.25? Calculate new values for the following:
Round dollar amounts to the nearest cent and round ratio values to four decimal places (express the ratio as a decimal rather than a percentage):