For this assignment, please submit the answers to the following questions, as well as an Excel spreadsheet which documents the work you did.

Do poets die young? According to William Butler Yeats, “She is the Gaelic muse, for she gives inspiration to those she persecutes. The Gaelic poets die young, for she is restless, and will not let them remain long on earth.” One study designed to investigate this issue examined the age at death for writers from different cultures and genders. Three categories of writers examined were novelists, poets, and nonfiction writers. The ages at death for female writers in these categories from North America are given in the dataset on blackboard (data file : Female Writers.xls). Most of the writers are from the United States, but Canadian and Mexican writers are also included.

a)   Use Excel to build a boxplot of the three associated data sets. If the population mean death ages were the same for the three populations, would you expect to see a boxplot like this? Please elaborate.
b)   Write down both the null and alternative hypothesis for the one-way ANOVA.

c)   Run the one-way ANOVA test in Excel; make sure you save this in your spreadsheet somewhere where it can be found.

d)   You will see a value for F-stat. Report this value, and explain how it is related to MSA and MSW.

e)   In general, what is a p-value? In your table, what p-value is reported, and what exactly does it mean?

f)   At the .05 level of significance, is there evidence of a difference in mean age of death among the various types of female writers? Explain your decision.

Profit Analysis

The same multimedia company now estimates their cost and revenue functions to be:

C(x) = 11.2x + 48,000   and   

R(x) = 18.26x.

Find the profit of manufacturing and selling 9,633 units.  (Round to two decimal places).

Suppose Company A has revenue $45 million this year and we assume that its future performance will be tracked relative to sales as follows:

Sales growth and the net profit margin are projected by year as shown in the following table:

Fixed capital investment net of depreciation is projected to be 25% of the sales increase in each year.

Working capital requirements are 8.0% of the projected dollar increase sales in each year. Debt will finance 30% of the investments in net capital and working capital.
Risk free rate is 3%, beta equity is 1.1, and market return is 7%
Calculate the value of the equity of this company.

A company bought a new machine fot $300,000. The new machine generated revenue for $90,000 per year. Operating cost of that machine is $10,000 per year. The machine is depreciated according to 7-years MACRS method. The machine is sold for $80,000 in the middle of 6^th year of service. Determine the after tax net present worth. Assume, the after-tax MARR is 10% and income tax rate is 25% (federal and state combined).

We are given the following information about a Company X -

Debt-Value Ratio - 15%

Revenue - $90,000

Cost - $50,0000

Cost of Debt - 5%

Cost of Equity - 25%

Shares Outstanding - 5,000

Corporate Tax - 30%

(a) What is the firm’s value?

(b) What is its stock price?

(c) Company Y is a leveraged buyout firm. It believes that Company X's leverage is too low. It thinks that Company X's firm value can increase with higher debt-to-value ratio and believes Company X's optimal debt-to-value ratio is 15%. Company X's cost of debt at this 15% debt-to-value ratio is 9%. Company Y is considering buying all of Company X's shares and increase Company X's leverage to the optimal 15% level. Proceeds from debt issuance will be given out to equityholderes as special dividend. What is the maximum premium Company Y is willing to pay for Company X's shares?

A company has the following results for the year ending December 31, 2020

On September 1, 2020, the company decided to eliminate a division. During 2020, losses relating to the eliminated division total $253,000. The above results in the table do not include this amount.

The company's income tax rate is 40%. All given amounts are pre-tax figures.

What is the company's net income or loss from 2020?

An electrical product manufacturing company provides the following information related to plant revenue, cost, and capacity. The purpose is to find the answers to the questions that are of primary interest to the company. The data is as follows:

Plant capacity 55,000 units

Total fixed cost $ 550,000

Unit Price $ 40

Variable cost $ 18

Tax rate 15%

Expected profit $ 85,000

Contribution margin $ 22

9. What would be the sale price of the product for which the plant would be at its break even point, if the fixed cost was $ 500,000, the variable cost was $ 50 and the maximum quantity to sell was 40,000?

10. Taking as a break even point the price of question 9, if the company wanted to obtain a profit of 30%, what would be the sale price of the product

A company reports sales revenue of $314 million, cost of goods sold of $187 million, selling and administrative expenses of $77 million, depreciation of $20 million, and interest expense of $5 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

A company reports sales revenue of $313 million, cost of goods sold of $183 million, selling and administration expenses of $79 million, depreciation of $20 million and interest expense of $9 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

The Dirk Company fails to record these journal entries:

Determine the net effect of these errors on the following items. Indicate the dollar amount of the error and the direction of the error. (Example: $17 overstated, or $12 understated, or No Error.)

1. Net Income
2. Total Liabilities
3. Total Assets
4. Retained Earnings

Please show work or any equations used to get the answer.