2. Peppermint Corporation has just paid a cash dividend of $0.8 per share on its common stock. The dividend is expected to grow by 10 percent per year.

Suppose that investors require a 16 percent return from investments similar to that. Find the current value of a share of Peppermint Corporation.

3. ATA Corporation has just issued a 10-years, with a face value of $1,000, 6% semi-annual coupon bond. The yield-to-maturity (YTM) on this bond is 10% compounded semi-annually.

3a. Determine if this bond is currently valued at par, discount or premium. Explain your answers by applying the concept of bond properties.

3b. Find the current price of this bond.

3c. If the YTM of the bond remains same, what will be the bond price in two years.

4. UFO Company has issued a perpetual bond paying $50 coupon interests each year indefinitely. This perpetual bond, with a face value of $1000, is currently trading at a price of 1,500. Calculate the current interest rate of UFO’s perpetual bond.

6. EGGO Corporation is choosing between the following two capital investments projects:

Suppose the company requires a 10 percent on its capital investments projects.

6a Using the Net Present Value (NPV) criterion, which project(s) should EGGO Corporation choose if Project A and Project B are independent?

6b If Project A and Project B are mutually exclusive, based on the Net Present Value (NPV) criterion, which project should EGGO choose with reference to your calculations in (a).

6c Using the Profitability Index (PI) criterion, which project(s) should EGGO Corporation choose if Project A and Project B are independent?

6d If Project A and Project B are mutually exclusive, based on the Profitability Index (PI) criterion, which project should EGGO choose with reference to your calculations in (c).

6e Briefly discuss the problems of using Profitability Index (PI) as a capital budgeting technique to decide the project choice.

Ohio Inc. has a beta of 1.6 and its debt-to-equity ratio is 0.8. The risk-free rate is 3.2% and the market risk premium is 9%. Although Ohio is a U.S. firm, it issued Swiss Franc (SF) denominated bond and converted SF to US dollar. The semi-annual interest payment is made in SF. The coupon rate is 8%, the price of the bond is SF1,040, the face value is SF1,000 and the bond matures in 10 years. The exchange rate is expected to move from SF0.9800/$ to SF0.9600/$. Ohio's tax rate is 40%.

a. What's Ohio's SF cost of debt?

b. What's your best estimate of Ohio's US dollar cost of debt?

c. What's Ohio's cost of equity?

d. What's Ohio's WACC?

Consider the following closed Keynesian economy:

Desired consumption and investment are given by:
Cd = 200+0.8(Y −T)−500r

Id = 200 − 500r. Taxes and government expenditures are given by

The real money demand is

T = 20+0.25Y G = G=196.

Md
P = 0.5Y − 250(r + πe).

The money supply M = 9890 and the expected inflation πe = 0.10.
(a) Derive the equations for the IS and LM curves and show them on a (Y, r) graph.

(b) If the full-employment output is Y = 1000, what are the equilibrium values of r, P, C and I?

(c) Suppose there is a surprise increase in money supply, M to 12,650, what will be the short-run equilibrium values of Y, r, C and I? What will happen in the long-run? [Hint: Prices are sticky in the short–run (Keynesian)]

(d) If, after the increase in M the government increases its expenditure, what will be your predictions for Y,r,P,C and I? Be specific. [Do not solve for any variable.] Illustrate this on a diagram.

1- water at 100 degree and quality X=0.8 % has mass 0.1 kg find volume =?
2- R-410 at -10 degree and 100kpa find enthalpy h and energy u
3- water at 200kpa , v = 0.08 m^3/kg find pressure p and Quality x
4- water at 200 kpa , T= 270 degree find specific volume
5- water at p= 1200 kpa , V= 0.18m^3/kg find T,u

Abacus Co. wishes to maintain a growth rate of 14 percent a year, a debt–equity ratio of 1.4, and a dividend payout ratio of 26 percent. The ratio of total assets to sales is constant at 0.8.

What profit margin must the firm achieve? (in %) (round 2 decimal places)

Use the improved Euler's method to obtain a four-decimal approximation of the indicated value. First use h = 0.1 and then use h = 0.05. y' = y − y^2, y(0) = 0.8; y(0.5) y(0.5) ≈________ (h = 0.1)

y(0.5) ≈ _________(h = 0.05)

If the concentration of glucose inside an E. coli cell is 5.1 mM, how many glucose molecules are in the cell? Assume an E. coli cell to be a cylinder 1.9 micrometers long and 0.8 micrometers in diameter. Enter your answer to the nearest ones.

I thought it was 3.0*10⁶ but it was wrong.

Use a numerical solver and Euler's method to obtain a four-decimal approximation of the indicated value. First use

h = 0.1

and then use

h = 0.05

y' = y − y², y(0) = 0.8;    y(0.5)

*** PLEASE ANSWER ALL QUESTIONS IN PARAGRAPH FORMAT.

The following case study provides information for a hotel chain. They have recently conducted a customer satisfaction survey. Given these research results and the other information in the case, what advice would you give them? This is a good exercise in utilizing the results of market research.

ACTIVITY/TASK

The Quick-Stop Hotel Chain

Quick-Stop Hotels is a small hotel chain located along on the north coast of New South Wales. This chain consists of five different hotel complexes located several hours drive apart along the main coastal highway between Sydney and Brisbane.

Their prime target market is the family segment. This is because families often choose to drive from Sydney to Brisbane (or Brisbane to Sydney) and back again for their holidays. As this trip is around a 12-hour drive, many travelers choose to stop overnight in order break up their journey. Therefore, Quick-Stop has deliberately chosen popular stopover towns for their hotels.

In line with this location strategy, they promote themselves with the slogan, “the “perfect place for a break”.

Their individual hotels vary a little in quality, but all have either a 3 or a 4 star rating. This means that they are either medium (3 star) or good (4 star) quality in terms of facilities and general standard of accommodation. On average, they each have around 80 rooms and a fairly broad range of facilities (that is, a heated swimming pool, room service, restaurant and bar, a kid’s club during school holidays, a small gym, and some have tennis courts and a couple of stores).

In terms of promotion, they are heavy outdoor (billboard) advertisers on the coastal highway. They also advertise in various holiday and travel directories, and on the government tourism website.

As you can see from the table below, they vary pricing throughout the year. Pricing is generally used as a tool to increase demand in the low season and to increase revenue in the high season. This is necessary as they have highly seasonal demand, being frequently being booked out over the Christmas holiday period, and with very high demand in other school holiday periods.

The table also shows the results of a customer satisfaction survey for Quick-Stop Hotels. On average, 80% of customers indicated that they were satisfied with their stay and 10% were delighted with their stay. However, 10% indicated they were dissatisfied. These figures vary by season, whether the customer was a first-time customer, and by the quality of the individual hotel. Additionally, the table includes information on average room rates (per night) and occupancy levels. (Note: The occupancy level is the percentage of rooms occupied per night.)

QUESTIONS

1. Review the customer satisfaction information. Does it make sense? Why/why not?
2. Given these research results and the other information in the case, what advice would you give this firm.
3. Which of the above metrics did you find helpful? Which did you ignore?
4. What other information would have been helpful?