MM with Corporate Taxes Companies U and L are identical in every respect except that U is unlevered while L has $14 million of 8% bonds outstanding. Assume that: (1) All of the MM assumptions are met. (2) Both firms are subject to a 40% federal-plus-state corporate tax rate. (3) EBIT is $4 million. (4) The unlevered cost of equity is 12%. What value would MM now estimate for each firm? (Hint: Use Proposition I.) Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to two decimal places. Company U $ 20 million Company L $ 25.6 million What is rs for Firm U? Round your answer to one decimal place. 12 % What is rs for Firm L? Do not round intermediate calculations. Round your answer to one decimal place. % Find SL, and then show that SL + D = VL results in the same value as obtained in Part a. Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to two decimal places. SL = $ million SL + D = $ million What is the WACC for Firm U? Do not round intermediate calculations. Round your answer to two decimal places. % What is the WACC for Firm L? Do not round intermediate calculations. Round your answer to two decimal places. %

In humans, the allele for brown eyes (B) is dominant. The allele for blue eyes (b) is
recessive. If a woman with genotype Bb and a man with genotype Bb have a child,
what will be the likelihood of the child having blue eyes?
a 0%
b 75%
c 50%
d 25%
e 100%
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What would be the result of a cell that underwent mitosis but not cytokinesis?
a Two daughter cells with no nucleus
b One daughter cell with two nuclei, each containing a normal number of
chromosomes
c Two daughter cells that are unusually small
d Two daughter cells with twice the number of chromosomes
e One daughter cell with one nucleus containing twice the normal number of
chromosomes
---------------------------
What two processes are responsible for the transfer of information from genes to
proteins?
a respiration and translation
b translation and protein synthesis
c respiration and protein synthesis
d translation and mutation
e transcription and translation
--------------------
What is the function of the lysosomes?
a Packaging of proteins
b Digestion and waste removal
c Maintaining cell structure
d Production of energy
e Storage

Lab observations :

Exp 2 Empty mass of crucible 88.00 Added 5g of Magnesium Chloride hydrate to crucible

Total mass of crucible and Magnesium Chloride hydrate 93.000 A gray/ white solid is present prior to heating heated under bunsen burner

White vapor is produced No change in color/ appearance

Mass of crucible and left over contents after heating 90.342

1)How many grams of anhydrous magnesium chloride were in the crucible after heating? Choose the closest answer.

2)How many grams of water were lost during the heating process? Choose the closest answer.

3)How many moles of water were lost during the heating? The molar mass of water is 18.015 g/mol. Choose the closest answer.

4)How many moles of anhydrous magnesium chloride remained in the crucible after heating? The molar mass of anhydrous magnesium chloride is 95.211 g/mol. Choose the closest answer.

5)In Experiment 2, which of the following represents the balanced chemical equation for this reaction?

6)Why was mass lost from the crucible during the reaction? 7)Calcium sulfate is a white solid found as two hydrates, a hemihydrate known as plaster of Paris and a dehydrate known as gypsum. The hemihydrate is a white solid as shown in the figure below. Given that the molar mass of the anhydrous calcium sulfate is 136.14 g/mol, the molar mass of the hemihydrate is 145.15 g/mol, and the molar mass of water is 18.015 g/mol, what is the empirical formula of the hemihydrate?

A researcher selects 100 subjects at random from a population, observes 50 successes, and calculates three confidence intervals. The confidence levels are 90%, 95%, and 99%, and the intervals are (0.402, 0.598), (0.371, 0.629), and (0.418, 0.582). Match each interval with its confidence level.

1) True or False? In a simple regression with the sample size being 20, we find the sum of squared residuals to be 1800, then the mean square error of the regression equals 10.

2) True or False? A local trucking company fitted a regression to relate the travel time (days) of its shipments as a function of the distance traveled (miles). The fitted regression is Time = −7.126 + 0.0214 Distance, based on a sample of 20 shipments. The estimated standard error of the slope is 0.0053. In a right-tailed test for a nonpositive slope at ? ൌ 0.01, we fail to reject the null hypothesis that the slope is no more than zero.

3) True or False? Smaller mean square errors lead to wider prediction intervals for Y.

4)True or False? If there is non-normality of errors, the OLS estimators of the slope and intercept will be biased and inconsistent.

5) True or False? In a runs test with 80 residuals, we find there are 60 zero centerline crossings. It suggests there is negative autocorrelation for the errors

6) True or False? In a simple regression with 25 observations, a leverage statistic of 0.1 would indicate the corresponding observation has high leverage.

7) True or False? A studentized residual equal to -2.5 indicates the original residual is unusual.

You are financial managers of a company which makes printers. Currently you are using NPV method to evaluate a 10-year project that produces a new model.

The WACC is 10% and the tax rate is 21%. (2 points)

1. The project needs a set of machine that is worth $5 million. The company uses 10-year straight-line depreciation.
2. In the past two years, the company spent $800,000 in R&D in developing the new model.
3. The project will be partially financed with debt, and the interest to be paid every year is $100,000.
4. If the new project is taken, it is expected that the current inventory level will increase by $1,500,000, account receivable will increase by $1 million, account payable increases by $800,000, and the minimum cash balance will increase by $0.5 million.
5. The sales from this project will be $8 million per year of which 20 percent will be from lost sales of existing products.
6. The variable costs of the production will be 30% of the sales.
7. The project will require hiring a new manager, who will cost $100,000 per year. In addition, the firm needs to rent a new office for $50,000 a year.
8. Currently, the overhead of the firm is $500,000. And the accounting department will allocate 20% of it to the new project.

Question 1: How much is the initial investment at t=0?

Question 2: How much is the operating cash flow for the first year?

Question 3: How much is the non-operating cash flow at the end of the last year?

Question 4: How much is the NPV?

You are financial managers of a company which makes printers. Currently you are using NPV method to evaluate a 10-year project that produces a new model.

The WACC is 10% and the tax rate is 21%. (2 points)

1. The project needs a set of machine that is worth $5 million. The company uses 10-year straight-line depreciation.
2. In the past two years, the company spent $800,000 in R&D in developing the new model.
3. The project will be partially financed with debt, and the interest to be paid every year is $100,000.
4. If the new project is taken, it is expected that the current inventory level will increase by $1,500,000, account receivable will increase by $1 million, account payable increases by $800,000, and the minimum cash balance will increase by $0.5 million.
5. The sales from this project will be $8 million per year of which 20 percent will be from lost sales of existing products.
6. The variable costs of the production will be 30% of the sales.
7. The project will require hiring a new manager, who will cost $100,000 per year. In addition, the firm needs to rent a new office for $50,000 a year.
8. Currently, the overhead of the firm is $500,000. And the accounting department will allocate 20% of it to the new project.

Question 1: How much is the initial investment at t=0?

Question 2: How much is the operating cash flow for the first year?

Question 3: How much is the non-operating cash flow at the end of the last year?

Question 4: How much is the NPV?

Suppose you are a stock analyst and have been assigned to follow a company that went public two years ago. In the three years prior to going public, the firm saw on average 20% quarterly growth in sales. Since going public, you have noticed a decline in the growth rate of sales, and in the last quarter the firm announced a 12% increase in sales. You have been given the task of forecasting the next two years of sales for the firm. Give two reasons why you would expect a return to higher growth and one reason why you would expect a continued decline in growth.

1. Consider the following two projects both costing $5,000. Assume the prevailing interest rate is 4%.
         Project 1 pays $1,000 for 50 years.
         Project 2 pays $900 forever.
   1. Use Solver to find the interest rate at which an investor would be indifferent between the two projects. Please use an Excel spreadsheet and save the Solver solution. That way, the grader can open the Solver window and check the parameter values you entered into Solver.
      
      (Hint: One way to ensure that the value of the two projects is identical is to create a cell in Excel that is equal to the difference in values of the two projects. Then, choose the option in Solver to set that cell equal to zero. Equivalently, you can add a constraint to Solver that the values of the two projects are equal.)

The patient is a 38 year old male plant manager and new long distance runner presenting with complaints of left anterolateral hip and thigh pain. He was referred to physiotherapy from his orthopedist, who diagnosed him with greater trochanteric bursitis.
His onset of symptoms was 6 weeks prior to the initial evaluation, after running a marathon (26.2 miles). By the end of the race, he was in intense, constant pain, rated at a 5/10 that remained constant for 3 days after. His symptoms became intermittent, and have not changed much since that time. His plan was to run 4 marathons in the next year, but he has stopped running completely, as every time he runs the pain comes back to the same intensity it was immediately after the race.
Since becoming symptomatic he has tried many stretches and strengthening exercises he researched on the internet. He has also received advice from his massage therapist. However, the same pain comes back when he runs. He has good shoes, and changes them every 250-300 miles, per industry recommendations. Because of all of his research, he is concerned that this is an issue that is going to keep him from running altogether.
When asked if the patient had any imaging, he replied “only an xray”. Then he said, “Why, do you think I need an MRI?” Sensing fear of life-altering structural damage, the patient was assured that one of the goals of physiotherapy is to determine the right place for them. With a careful assessment over 2-3 visits, we should know if further testing is necessary.


1. Given the history, anatomy and function of the hip, which structures are you going to examine? Explain why and how you will perform the examination of these structures.
2. What functional activities would you assess and how would you establish these    functional baselines. How vigorous can you be in your examination?
3. What examination tests would you use, and why would you use them?
4. What other subjective information would you get from this runner?