Q1 A researcher recorded the scores of 20 students in a written examination, trained in different methods, as shown below.

The data is arranged according to the training method used

TRAINING METHOD SCORES

Video Cassette 74 88 82 93 55 70

Audio Cassette 78 80 65 57 89

Classroom 68 83 50 91 84 77 94 81 92

1. Formulate and test the hypotheses to determine whether the examination scores among the 3 methods above are significantly different at 5% significance level

B Assume that you are carrying out a research at a university with 2000 students. How large a sample should you get to estimate the proportion of students who smoke to within a margin of error of ±5%, using any formulae. 10 marks

Consider the following four individuals, discuss whether they fit the three classic definitions of entrepreneur and whether they could be described as a necessity or opportunity entrepreneur?

1. Jane is a YouTube content creator who produces and publishes her show on youtube and other platforms, using her own equipment at her home.   

2. Alex is attending university. He is an experienced gamer of a popular online role-playing game, and he sometimes offers help to other players for a fee. He also sells virtual items gathered in the game through eBay and other online trading platforms.

3. A lawyer is operating his own law office.

4. Mike was a sous-chef, but the restaurant he worked shut down a few months ago. He is considering opening a food truck.

1. The number of people who filed claims for unemployment benefits in the last two weeks of March was about 1 million more jobs lost than

a)were lost in the previous two weeks

b)were lost in the previous four weeks

c)the entire number of jobs in the state of Florida

d)were lost in the first two weeks of the Great Recession

2. The source for most of the data reported in the media about confirmed COVID cases and deaths is produced by

a) the World Health Organization

b) Johns Hopkins University

c) the Center for Disease Control

d) The National Institute of Health

3. According to CBO projections, real GDP growth could be ___________ in the second quarter on an annualized basis.

a)-10%

b)2.1%

c)-5%

d)-28%

Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Journalize the transactions for the company. 1. Accounts Payable 7. Telephone Expense 2. Accounts Receivable 8. Unearned Revenue 3. Cash 9. Common Stock 4. Consulting Fees Earned 10. Dividends 5. Office Supplies 11. Insurance Expense 6. Office Supplies Expense 12. Prepaid Insurance A. Received cash of $100,000 in advance from a customer for designing a building B. Purchased office supplies on credit in the amount of $750. C. Paid for the supplies purchased in B. D. Received the telephone bill of the business and immediately paid it, amount $150. E. Paid for a 3-year insurance policy of $1400.

S

Selected information from the comparative financial statements of ZZ Tire Company for the year ended December 31, appears below:

There is no preferred stock and the tax rate is 30%.

Required:

Calculate each of the following for 2014:

a.       Debt ratio

b.      Debt-to-equity ratio

c.       Times interest earned ratio

d.      Gross margin percentage

e.      Return on assets

f.        Return on common stockholders’ equity

please write in text not in handwriting since its hard to read from a paper pic and i need an explanation for each problem thank you

1. During the year, Belyk Paving Co. had sales of $2,275,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,285,000, $535,000, and $420,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.)

1. What is Belyk Paving Company’s net income?
2. What is Belyk Paving Company’s operating cash flow?
3. Determine Belyk Paving Company’s Cash Coverage Ratio, Times Interest Earned (Interest Coverage Ratio) and the Gross Profit Margin?

AugRealElectronics is a midsized electronics manufacturer. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded over 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items.  You, a recent business school graduate, have been hired by the company in its finance department.

One of the major revenue-producing items manufactured by AugReal is a smart phone. AugReal currently has one smart phone model on the market and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. AugReal spent $750,000 to develop a prototype for a new smart phone that has all the features of the existing one but adds new features such as Pokémonluring and capturing. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smart phone.

AugReal can manufacture the new smart phone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively, and no sales after the fifth year. The unit price of the new smart phone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule (see Table 6.3, p. 175).  It is believed the value of the equipment in five years will be $5.5 million.

Net working capital for the smart phones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. AugReal has a 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked you to prepare a report that answers the following questions:

QUESTIONS

1. What is the payback period of the project?
2. What is the profitability index of the project?
3. What is the IRR of the project?
4. What is the NPV of the project?
5. Should AugReal produce the new smart phone?

REPORT STYLE

            Remember that your boss is a smart business person, but she is not a financial analyst like you.  You should lead her through the logic of your analysis to your conclusions. Be sure your report is accurate and professional:  your job (grade) is on the line!

The report should be single-spaced within paragraphs and double spaced between paragraphs.  Use headings for major sections.  Include page numbers.  Use Times 12-point font.  Pay attention to grammar and writing style.  Write your report in third person, active voice.  Include Excel Worksheet Objects as tables in the body of your report that show the numbers involved in your analysis.  Include a memo to your boss as the cover/transmittal page.  The memo should present your primary conclusions in a bullet list.  

Your submission should be a single Word document (maximum of 6 pages) uploaded into Canvas.  I will use the attached rubric in the grading process.  “Paste object” to put your cash flows from Excel into your Word file. This allows me to simply click on your tables to see the match behind your calculations.  DO NOT USE EXCEL LIKE A TYPEWRITER.  That is, let Excel do the calculations.  Don’t do the calculations with pen and paper or a calculator and then simply type in the numbers into an Excel sheet.  I want to see that you can use Excel for this assignment and that you understand the concept of pasting an object rather than a picture from Excel to Word.  Failure to use Excel in the manner described will result in a significant grade penalty (50%?) even if your numbers are technically correct.

Customers at a fast-food restaurant buy both sandwiches and drinks. The mean number of sandwiches is 1.5 with a standard deviation of 0.5. The mean number of drinks is 1.45 with a standard deviation of 0.3. The correlation between the number of sandwiches and drinks purchased by the customer is 0.6. If the profit earned from selling a sandwich is $1.50 and from a drink is $1, what is the expected value and standard deviation of profit made from each customer.

The main funding source for Foxcom Industries are corporate bonds (50%) and equity (50%). Foxcom industries is contemplating of undertaking the following activities. As a bondholder would you object to any of the following? Explain your answer for each of the following activities in detail.

2) Finland Treasury has issued $1,000 face value, 4-year bonds that pay annual coupons at a rate of 9 per cent.  The market interest rate is currently at 9%.

a) what would be the bond’s market value (price)?

b) Calculate the duration of the bonds.

c)The market interest rates increased sharply just after the issue. What is the percentage change in price if market rate is 9.5 per cent.   What is the new price?