Questions
Consider three bonds with maturities of 2, 6, and 10 years. All three bonds have a...

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...

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)

  • a. One sided T-test
  • b. Two sided T-test
  • c. Regression
  • d. Confidence interval

II. Statistical interpretation? (6.66 points)

  • a. Since P-value is small we are confident that the slope is not zero.
  • b. Since P-value is small we are confident that the averages are different.
  • c. Since P-value is too large the test is inconclusive.
  • d. None of these.

III. Conclusion? (6.66 points)

  • a. Yes, we confirm that this was a reasonable claim.
  • b. No, we cannot confirm that this was a reasonable claim.
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....

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...

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:...

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...

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...

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:

  • How sensitive are your customers to changes in price?
  • What revenue you need to break even and achieve profitability?
  • 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...

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...

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.

  1. Is Andy's action complying with GAAP? Why or why not? (i.e. what is the revenue recognition principle?)
  2. What do you think are the ethical implications of Andy's action?
  3. Which ratios will be improved by accelerating these sales?

In: Accounting

Advertisers contract with Internet service providers and search engines to place ads on websites. They pay...

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