A poll of 1769 U.S. adults found that 84% regularly used
Facebook as a news source.
Find the margin of error and confidence interval for the percentage of U.S. adults who regularly use Facebook as a news source, at the 90% level of confidence. Round all answers to 2 decimal places.
Margin of Error (as a percentage):
Confidence Interval: % to %
Find the margin of error and confidence interval for the percentage of U.S. adults who regularly use Facebook as a news source, at the 95% level of confidence. Round all answers to 2 decimal places.
Margin of Error (as a percentage):
Confidence Interval: % to %
Find the margin of error and confidence interval for the percentage of U.S. adults who regularly use Facebook as a news source, at the 99% level of confidence. Round all answers to 2 decimal places.
Margin of Error (as a percentage):
Confidence Interval: % to %
The more error we allow, the less precise our estimate. Therefore, as the confidence level increases, the precision of our estimate
In: Statistics and Probability
Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three years to maturity, whereas Bond Dave has 16 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave % If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave %
In: Finance
|
The demand (in number of copies per day) for a city newspaper,
x, has historically been 46,000, 58,000, 70,000, 82,000, or 100,000
with the respective probabilities .2, .16, .5, .1, and
.04. |
| (b) | Find the expected demand. (Round your answer to the nearest whole number.) |
| (c) |
Using Chebyshev's Theorem, find the minimum percentage of all possible daily demand values that will fall in the interval [μx ± 2σx]. (Round your answer to the nearest whole number. Input your answers to minimum percentage and percentage of all possible as percents without percent sign.) |
| (d) |
Calculate the interval [μx ± 2σx]. According to the probability distribution of demand x previously given, what percentage of all possible daily demand values fall in the interval [μx ± 2σx]? (Round your intermediate values to the nearest whole number. Round your answers to the nearest whole number. Input your answers to minimum percentage and percentage of all possible as percents without percent sign.) |
In: Statistics and Probability
Below are the prices on the first and last day of the year for Netflix common stock for several recent years.
|
Year First Day Last Day 2017 124.96 191.96 2016 109.00 123.80 2015 49.15 114.38 2014 52.40 48.80 |
Netflix paid no dividends over this period. Calculate the return that an investor would have earned in each calendar year. What is the average of these annual returns? Next, calculate the average annual growth rate in Netflix stock from the first day of 2014 to the last day of 2017. Compare these two answers.
The rate of return for 2017 is _____%. (Enter as a percentage and round to the nearest whole percent.)
The rate of return for 2016 is _____%.(Enter as a percentage and round to the nearest whole percent.)
The rate of return for 2015 is _____%. (Enter as a percentage and round to the nearest whole percent.)
The rate of return for 2014 is _____%.(Enter as a percentage and round to the nearest whole percent.)
The average of these returns is _____%.(Enter as a percentage and round to two decimal places.)
The average annual growth rate is _____% (Enter as a percentage and round to two decimal places.)
In: Finance
Problem 7-19 Interest Rate Risk [LO2]
Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has six years to maturity, whereas Bond Dave has 19 years to maturity.
If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Percentage change in price of Bond Sam
%
Percentage change in price of Bond Dave
%
If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Percentage change in price of Bond Sam
%
Percentage change in price of Bond Dave
%
In: Finance
Show: Create an application that allows the user to enter the number of calories and fat grams in a food. The application should display the percentage of the calories that come from fat. If the calories from fat are less than 30% of the total calories of the food, it should also display a message indicating the food is low in fat.
One gram of fat has 9 calories, so:
Calories from fat = fat grams *9
The percentage of calories from fat can be calculated as:
Percentage of calories from fat = Calories from fat / total calories
Input validation: Make sure the number of calories are not less than 0. Also, the number of calories from fat cannot be greater than the total number of calories. If that happens, display an error message indicating that either the calories or fat grams were incorrectly entered.
Use the following test data to determine if the application is calculating properly:
Calories and Fat Percentage
200 Calories, 8 fat grams Percentage of calories from fat: 36%
150 calories, 2 fat grams Percentage of calories from fat: 12%
(a low-fat food)
500 calories, 30 fat grams Percentage of calories from fat: 54%
In: Computer Science
Sunshine Inc has no debt outstanding and a total market value of $308,100. Earnings before interest and taxes, EBIT, are projected to be $46,000. If economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20% higher. If there is a recession, the EBIT will be 31% lower. The company is considering a $160,0000 debt issue with an interest rate of 5%. The proceeds will be used to repurchase shares of stock. There are currently 7,900 shares outstanding. Ignore taxes for questions a and b. Assure the company has a market to book ratio of 10 and the stock price remains constant. a1. Calculate Return on Equity (ROE) under each of the 3 economic scenarios before any debit is issued. a2. Calculate the percentage changes in ROE when the economy expands or enters a recession. b1. Assume the corp. goes through with the proposed recapitalization. Calculate the Return on Equity (ROE) under each of the three economic scenarios. b2. Assume the firm goes through with the proposed recapitalization. Calculate the percentages changes in ROE when the economy expands or enters a recession. Assume the firm has a tax rate of 24% c1. Calculate return on equity(ROE) under each of the three economic scenarios before any debit issued. c2. Calculate the percentage changes in ROE when the economy expands or enters a recession. c3. Calculate the return on equity(ROE) under each of the three economic scenarios assuming the firm goes through with the recapitalization. c4. Given the recapitalization, calculate the percentage changes in ROE when the economy expands or enters a recession.
|
A1 |
Recession ROE |
% |
|
|
Normal ROE |
% |
||
|
Expansion ROE |
% |
||
|
A2 |
Recession Percentage change in ROE |
% |
|
|
Expansion Percentage change in ROE |
% |
||
|
B1 |
Recession ROE |
% |
|
|
Normal ROE |
% |
||
|
Expansion ROE |
% |
||
|
B2 |
Recession Percentage change in ROE |
% |
|
|
Expansion Percentage change in ROE |
% |
||
|
C1 |
Recession ROE |
% |
|
|
Normal ROE |
% |
||
|
Expansion ROE |
% |
||
|
C2 |
Recession Percentage change in ROE |
% |
|
|
Expansion Percentage change in ROE |
% |
||
|
C3 |
Recession ROE |
% |
|
|
Normal ROE |
% |
||
|
Expansion ROE |
% |
||
|
C4 |
Recession Percentage change in ROE |
% |
|
|
Expansion Percentage change in ROE |
% |
In: Finance
|
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $86,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $38,800. |
|
A new piece of equipment will cost $270,000. It also falls into the five-year category for MACRS depreciation. |
|
Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. |
| Year | Cash Savings |
| 1 | $65,000 |
| 2 | 55,000 |
| 3 | 53,000 |
| 4 | 51,000 |
| 5 | 48,000 |
| 6 | 37,000 |
| The firm’s tax rate is 30 percent and the cost of capital is 11 percent. |
| a. |
What is the book value of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) |
| Book value | $ |
| b. |
What is the tax loss on the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) |
| Tax loss | $ |
| c. |
What is the tax benefit from the sale? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) |
| Tax benefit | $ |
| d. |
What is the cash inflow from the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) |
| Cash inflow | $ |
| e. |
What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) (Do not round intermediate calculations and round your answer to the nearest whole dollar.) |
| Net cost | $ |
| f. |
Determine the depreciation schedule for the new equipment. (Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.) |
| Year |
Depreciation Base |
Percentage Depreciation |
Annual Depreciation |
| 1 | $ | $ | |
| 2 | |||
| 3 | |||
| 4 | |||
| 5 | |||
| 6 | |||
| $ | |||
| g. |
Determine the depreciation schedule for the remaining years of the old equipment. (Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.) |
| Year |
Depreciation Base |
Percentage Depreciation |
Annual Depreciation |
| 1 | $ | $ | |
| 2 | |||
| 3 | |||
| 4 | |||
| h. |
Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. (Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) |
| Year |
Depreciation on New Equipment |
Depreciation on Old Equipment |
Incremental Depreciation |
Tax Rate |
Tax Shield Benefits |
| 1 | $ | $ | $ | $ | |
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| 6 | |||||
| i. |
Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) |
| Year | Savings | (1 – Tax Rate) | Aftertax Savings |
| 1 | $65,000 | $ | |
| 2 | 55,000 | ||
| 3 | 53,000 | ||
| 4 | 51,000 | ||
| 5 | 48,000 | ||
| 6 | 37,000 | ||
| j-1. |
Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) |
| Year | Tax
Shield Benefits from Depreciation |
Aftertax Cost Savings |
Total
Annual Benefits |
| 1 | $ | $ | |
| 2 | |||
| 3 | |||
| 4 | |||
| 5 | |||
| 6 | |||
| j-2. |
Compute the present value of the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) |
| Total annual benefits | $ |
| k-1. |
Compare the present value of the incremental benefits (j) to the net cost of the new equipment (e). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.) |
| Net present value |
$ |
In: Finance
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:
| Fixed Cost per Month |
Cost per Car Washed |
||||||
| Cleaning supplies | $ | 0.40 | |||||
| Electricity | $ | 1,500 | $ | 0.08 | |||
| Maintenance | $ | 0.10 | |||||
| Wages and salaries | $ | 4,800 | $ | 0.30 | |||
| Depreciation | $ | 8,300 | |||||
| Rent | $ | 1,900 | |||||
| Administrative expenses | $ | 1,700 | $ | 0.01 | |||
For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed.
The actual operating results for August appear below.
| Lavage Rapide | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual cars washed | 8,500 | |
| Revenue | $ | 58,380 |
| Expenses: | ||
| Cleaning supplies | 3,860 | |
| Electricity | 2,142 | |
| Maintenance | 1,080 | |
| Wages and salaries | 7,680 | |
| Depreciation | 8,300 | |
| Rent | 2,100 | |
| Administrative expenses | 1,684 | |
| Total expense | 26,846 | |
| Net operating income | $ | 31,534 |
Required:
Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting
A steel industry emits, other harmful pollutants , CO. There are 8 identical firms in this industry. Four of them are located near a city( urban area) while four of them are located in the country ( rural area) . They can install filters ( srubbers) in their exhaust to clean up part of their emissions. Their abatements costs related to CO clean up are described by MACi= 400- 8Ei, where i = 1,2,....8 . The emission of CO are locally dispersed. Due to higher population and structure density in the city , the marginal damage a unit of CO is causing in the urban area is higher than that in the rural area. More specifically these damages are described by MDu= 1.2 E and MDr=0.5 E
a. Find the units of emissions these 8 firms will emit if the CO emissions are left unregulated . How many units of emissions are released in each of the two areas
b. Find the aggregate marginal abatement cost function for each of the two area
c. What is the socially efficient level of emissions in each area and how many unit of emissions must be abated( in each area) compared to the unregulated level so that efficiency will be achieved
d. If the government sets the pollution levels at the socially efficient levels of emissions in each of the two areas, calculate the total abatement cost per firm in each of the two area
In: Economics