Consider three bonds with maturities of 2, 6, and 10 years. All three bonds have a coupon rate of 8% and have face values of $1,000. Assume semiannual coupon payments. Use this information to answer the following questions: a) What would be the market price of each bond if their YTM was 6%? b) What would be the market price of each bond if their YTM was 10%? c) Graph the relationship between bond prices (y-axis) and the YTM (X-axis) for the three bonds. What conclusions can you draw regarding the relationship between time to maturity and the sensitivity of bond prices to changes in interest rates?
In: Finance
In what follows use any of the following tests/procedures: Regression, multiple regression, confidence intervals, one sided T-test or two sided T-test. All the procedures should be done with 5% P-value or 95% confidence interval.Some answers are approximated, choose the most appropriate answer. SETUP: Is it reasonable to claim that cars with higher city MPG have also higher Highway MPG? Given the data your job is to help answer this question.
I. What test/procedure did you perform? (6.66 points)
II. Statistical interpretation? (6.66 points)
III. Conclusion? (6.66 points)
| CityMPG | HighwayMPG |
| 28 | 34 |
| 28 | 34 |
| 26 | 37 |
| 26 | 37 |
| 26 | 37 |
| 29 | 36 |
| 29 | 36 |
| 26 | 33 |
| 27 | 36 |
| 26 | 33 |
| 26 | 33 |
| 32 | 38 |
| 36 | 44 |
| 32 | 38 |
| 29 | 33 |
| 29 | 33 |
| 29 | 33 |
| 26 | 34 |
| 26 | 34 |
| 26 | 34 |
| 23 | 30 |
| 26 | 33 |
| 25 | 32 |
| 24 | 32 |
| 24 | 32 |
| 24 | 32 |
| 28 | 37 |
| 28 | 35 |
| 28 | 35 |
| 24 | 33 |
| 26 | 35 |
| 26 | 35 |
| 26 | 35 |
| 26 | 35 |
| 26 | 35 |
| 32 | 38 |
| 25 | 31 |
| 25 | 31 |
| 24 | 31 |
| 22 | 30 |
| 32 | 40 |
| 32 | 40 |
| 32 | 40 |
| 35 | 43 |
| 33 | 39 |
| 35 | 43 |
| 20 | 30 |
| 21 | 32 |
| 24 | 34 |
| 22 | 30 |
| 21 | 32 |
| 22 | 29 |
| 22 | 29 |
| 22 | 30 |
| 21 | 28 |
| 21 | 29 |
| 21 | 28 |
| 21 | 28 |
| 21 | 28 |
| 20 | 27 |
| 19 | 26 |
| 26 | 34 |
| 26 | 34 |
| 32 | 37 |
| 26 | 30 |
| 46 | 51 |
| 60 | 66 |
| 19 | 27 |
| 19 | 27 |
| 20 | 27 |
| 24 | 32 |
| 20 | 27 |
| 25 | 34 |
| 21 | 26 |
| 23 | 28 |
| 24 | 32 |
| 20 | 29 |
| 20 | 30 |
| 24 | 33 |
| 20 | 28 |
| 22 | 28 |
| 21 | 28 |
| 20 | 27 |
| 24 | 33 |
| 21 | 29 |
| 24 | 33 |
| 20 | 29 |
| 59 | 51 |
| 24 | 31 |
| 24 | 31 |
| 38 | 46 |
| 24 | 31 |
| 24 | 31 |
| 22 | 29 |
| 22 | 31 |
| 20 | 29 |
| 20 | 29 |
| 20 | 30 |
| 18 | 28 |
| 20 | 30 |
| 18 | 28 |
| 23 | 32 |
| 18 | 28 |
| 18 | 27 |
| 21 | 29 |
| 19 | 27 |
| 21 | 27 |
| 22 | 30 |
| 18 | 27 |
| 17 | 25 |
| 17 | 25 |
| 21 | 30 |
| 21 | 30 |
| 17 | 26 |
| 17 | 26 |
| 18 | 26 |
| 18 | 26 |
| 18 | 26 |
| 22 | 30 |
| 19 | 26 |
| 17 | 25 |
| 17 | 25 |
| 19 | 26 |
| 18 | 25 |
| 18 | 26 |
| 21 | 26 |
| 20 | 28 |
| 20 | 28 |
| 20 | 29 |
| 20 | 30 |
| 21 | 28 |
| 20 | 27 |
| 19 | 26 |
| 21 | 29 |
| 21 | 29 |
| 20 | 29 |
| 21 | 30 |
| 24 | 30 |
| 22 | 31 |
| 22 | 29 |
| 20 | 28 |
| 23 | 30 |
| 20 | 28 |
| 17 | 26 |
| 18 | 25 |
| 20 | 27 |
| 18 | 25 |
| 20 | 29 |
| 19 | 27 |
| 19 | 27 |
| 20 | 30 |
| 20 | 30 |
| 20 | 29 |
| 19 | 28 |
| 20 | 29 |
| 20 | 29 |
| 18 | 25 |
| 18 | 27 |
| 21 | 28 |
| 17 | 25 |
| 18 | 26 |
| 19 | 26 |
| 18 | 25 |
| 20 | 29 |
| 18 | 25 |
| 18 | 24 |
| 20 | 26 |
| 20 | 26 |
| 20 | 25 |
| 19 | 25 |
| 19 | 26 |
| 20 | 26 |
| 17 | 25 |
| 17 | 23 |
| 20 | 28 |
| 20 | 28 |
| 21 | 29 |
| 21 | 29 |
| 19 | 26 |
| 21 | 29 |
| 19 | 26 |
| 18 | 25 |
| 20 | 27 |
| 20 | 28 |
| 18 | 25 |
| 20 | 28 |
| 20 | 27 |
| 18 | 24 |
| 18 | 24 |
| 20 | 27 |
| 18 | 25 |
| 18 | 25 |
| 17 | 24 |
| 17 | 24 |
| 14 | 20 |
| 19 | 28 |
| 20 | 30 |
| 18 | 26 |
| 18 | 26 |
| 18 | 26 |
| 18 | 28 |
| 18 | 26 |
| 18 | 26 |
| 18 | 26 |
| 17 | 23 |
| 17 | 23 |
| 18 | 26 |
| 18 | 28 |
| 17 | 24 |
| 18 | 28 |
| 18 | 28 |
| 17 | 24 |
| 18 | 25 |
| 18 | 23 |
| 18 | 25 |
| 17 | 24 |
| 17 | 24 |
| 17 | 25 |
| 17 | 25 |
| 17 | 25 |
| 16 | 21 |
| 16 | 24 |
| 13 | 19 |
| 20 | 26 |
| 17 | 22 |
| 19 | 27 |
| 16 | 20 |
| 18 | 26 |
| 16 | 24 |
| 21 | 29 |
| 21 | 30 |
| 21 | 28 |
| 20 | 26 |
| 19 | 26 |
In: Math
Accrual accounting matches revenue with expenses, however accruals can be used to manipulate income and expenses. In the Forbes Magazine article, “Cash Doesn’t Lie,” written by Daniel Fisher, the author discusses the use of negative accruals, changes to estimates and recognizing income before it is earned. Read the article and then:
a. Discuss the use of each of these three techniques and their
effect on current and future earnings reporting.
b. How should changes of accounting estimates that significantly
affect income be reported? Should they be regarded as a change in
accounting principle?
c. Research revenue recognition and discuss the accounting rules
violated that brought down the company Sunbeam.
PLEASE PROVIDE NEW DETAIL ANSWERS TO EACH QUESTION AND PLEASE NO HAND WRITTEN ANSWERS.
In: Accounting
1. A large amount of _________ expenses will lead to a low amount of risk since they will _____ with revenues
a. variable; change
b. variable; not change
c. fixed; change
d. fixed; not change
2. Forecasting cash inflows is
a. important since there may be a time gap when a cash inflow from revenue occurs and when expenses must be paid.
b. important since there may be a time gap in when revenue is earned and when cash inflow from revenue occurs
c. not important since revenue forecasting is sufficient for financial forecasts
d. not important since short term cash can always be raised if there is a cash shortfall between cash inflows and cash outflows.
3. which of the following is not true about traditional finance and entrepreneurial finance?
a. they both still use the same techniques to calculate risk measures and returns
b. they both still focus on the areas of investments, financial markets, and financial management
c. they both still use the same techniques to record financial transactions
d. they both still use the same accounting statements
e. all of the above are true about traditional and entrepreneurial finance
In: Finance
Modify the GreenvilleRevenue program so that it uses the Contestant class and performs the following tasks: The program prompts the user for the number of contestants in this year’s competition; the number must be between 0 and 30. The program continues to prompt the user until a valid value is entered. The expected revenue is calculated and displayed. The revenue is $25 per contestant. For example if there were 3 contestants, the expected revenue would be displayed as: Revenue expected this year is $75.00 The program prompts the user for names and talent codes for each contestant entered. Along with the prompt for a talent code, display a list of the valid categories. The categories should be displayed in the following format: The types of talent are: S Singing D Dancing M Musical instrument O Other After data entry is complete, the program displays the valid talent categories and then continuously prompts the user for talent codes and displays the names of all contestants in the category. Appropriate messages are displayed if the entered code is not a character or a valid code.
beginning of c# code:
using System;
using static System.Console;
using System.Globalization;
class GreenvilleRevenue
{
static void Main()
{
// Your code here
}
}
In: Computer Science
Rose Company makes bottles. The followings are the extracted information:
| Direct materials used | 40,000 | Maximum capacity | 25,000 | |
| Direct labor | 80,000 | Units produced and sold | 20,000 | |
| Variable manufacturing overhead | 60,000 | Finished Goods Inventory | $0 | |
| Fixed manufacturing overhead | 5,000 | WIP Inventory | $0 | |
| Variable selling and admin expenses | 16,000 | (Both Beginning and Ending) | ||
| Fixed selling and admin expenses | 8,000 | |||
| Unit selling price | $30 |
The Company charges the customers based on cost-plus pricing
approach
You required to calculate the TOTAL REVENUE if all units are sold given the rule is:
20% mark up on all variable cost and 25% mark up on all fixed manufacturing cost
In: Accounting
You may use either written paragraph or bullet-point format. Part 1 should be 2–3 paragraphs in length or an equivalent amount of content in bullet-point form.
Part 1: Pricing Strategy
Briefly describe pricing for your product or service. How does this compare to competitors, assuming competitors are at or near break-even point with their pricing? Analyze pricing alternatives and make recommendations about pricing going forward based on the following:
What does the price says about your product in terms of value, quality, prestige, etc.?
This is For Target Corporation. The retail store
In: Finance
|
You own a restaurant and are considering buying a liquor license. You estimate that it will cost you $200,000 to buy a five-year license and construct a bar and that you will generate $40,000 in after-tax cash flows each year for the next five years. (The cost of the license is capitalized and the cash flows already reflect the depreciation). 1. If your cost of capital is 15%, estimate the net present value of buying a liquor license. (There is no salvage value at the end of the 5th year). 2. Assume now that the bar will bring in additional customers to your restaurant. If your after- tax operating margin is 60%, how much additional revenue would you have to generate each year in your restaurant for the liquor license to make economic sense? |
In: Finance
Atlantis Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Andy, the owner of Atlantis, has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customer and asked them to make their usual January purchases by December 31. Andy told the customers he would allow them, until the end of February, to pay for the purchases, just as if they had made their purchase in January.
In: Accounting
Advertisers contract with Internet service providers and search engines to place ads on websites. They pay a fee based on the number of potential customers who click on their ad. Unfortunately, click fraud—the practice of someone clicking on an ad solely for the purpose of driving up advertising revenue—has become a problem. According to BusinessWeek 43% of advertisers claim they have been a victim of click fraud. Suppose a simple random sample of 300 advertisers will be taken to learn more about how they are affected by this practice. Use z-table.
a. What is the probability that the sample proportion will be within +- 0.03 of the population proportion experiencing click fraud?
(to 4 decimals)
b. What is the probability that the sample proportion will be greater than 0.49?
(to 4 decimals)
In: Statistics and Probability