You have the following historical annual total returns on Terlingua Oil & Gas Exploration:
| Year | Annual total return (%) |
| 2001 | 9% |
| 2002 | 10% |
| 2003 | 14% |
| 2004 | 12% |
| 2005 | -1% |
| 2006 | 4% |
| 2007 | -1% |
| 2008 | 8% |
| 2009 | -1% |
| 2010 | 6% |
Calculate the sample standard deviation of annual return.
In: Finance
The Sterling Tire Company's income statement for 20X1 is as follows:
STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 | |
Sales (23,000 tires at $66 each) | $1,518,000 |
Variable costs (23,000 tires at $33) | 759,000 |
Fixed costs | 430,000 |
Earnings before interest and taxes (EBIT) | $ 329,000 |
Interest expense | 51,500 |
Earnings before taxes (EBT) | $277,500 |
| Income tax expense (30%) | 83,250 |
| Earnings after taxes (EAT) | $ 194,250 |
a. Compute the degree of operating leverage.
b. Compute the degree of financial leverage.
c. Compute the degree of combined leverage.
d. Compute the break-even point in units.
In: Finance
A local car wash uses 15 containers of soap during each of the 50 weeks they operate per year. Each container costs $25, setup (ordering) costs are $18 and holding costs for each unit is $2.5 per year. Assume the car wash currently purchases 160 containers per order. What is the total cost before and after using the optimal EOQ quantity (assuming there is no safety stock)? Answer question as (total cost before optimal quantity, total cost with optimal quantity).
Note: Choose the answer that is closest to your results.
|
($19,010, $18,034) |
|
|
None of the above |
|
|
($19,010, $18,750) |
|
|
($19,034, $19,010) |
|
|
($19,034, $18,750) |
In: Statistics and Probability
A company purchases a general purpose truck to make its deliveries. It wishes to analyze the financial effects including taxes and depreciation. Its initial cost is 100,000. It generates 120,000 Before Tax Cash flow per year. It is to be Depreciated Using Double Declining Balance. The taxation rate is 40% including all state federal and local taxes. The effects will be analyzed for the first six years. Show in a spread sheet (or other reasonable display) for each year: The Before Tax Cash Flow , the yearly depreciation, the resulting taxable income, the taxes paid and the after tax cash flow. Indicate the equations used and give some brief narrative indicating intermediate steps.
In: Economics
Antoine is single and has AGI of $277,000 for 2018. He incurred the following expenses and losses during the year:
| Medical expenses before the 7.5%-of-AGI limitation | $37,300 |
| State and local income taxes | 2,700 |
| State sales tax | 2,900 |
| Real estate taxes | 13,400 |
| Home mortgage interest | 12,800 |
| Credit card interest | 815 |
| Charitable contribution | 11,700 |
|
Casualty loss before 10% limitation (after $100 floor; not in a Federally declared disaster area) Unreimbursed employee expenses subject to the 2%-of-AGI limitation |
20,600 14,400 |
|
If required, round any computations to the nearest dollar. Calculate Antoine's allowable itemized deductions for the year. |
In: Accounting
In: Physics
The machine repair model may often be used to approximate the behavior of a computer’s CPU (central processing unit). Suppose that 20 terminals (assumed to always be busy) feed the CPU. After the CPU responds to a user, he or she takes an average of 80 seconds before sending another request to the CPU (this is called the think time). The CPU takes an average of 2 seconds to respond to any request.
On the average, how long will a user have to wait before the CPU acts on his or her request? How will your answer change if there are 30 terminals? 40 terminals?
Of course, you must make appropriate assumptions about exponentiality to answer this question
In: Mechanical Engineering
1)In most states, statutes require leases for terms exceeding one year to be in writing.
True
False
2) Which of the following statements does not release the tenant from further obligations to pay rent to the landlord.
a. The lease gives the tenant the opportunity to purchase the property before the lease expires and the tenant purchases the property.
b. The landlord and the tenant agree to terminate the lease before it expires.
c. The tenant abandons the leased property.
d. The lease is self-renewing and the tenant gives notice of termination within the period provided in the lease.
3)Even after a tenant assigns a lease, the tenant may be obligated to pay rent.
True
False
In: Operations Management
You have been hired as an expert witness in a court case involving an automobile accident. The accident involved car A of mass 1430 kg which crashed into stationary car B of mass 1160 kg .The driver of car A applied his brakes 15 m before he skidded and crashed into car B. After the collision, car A slid 18 m while car B slid 30 m.The coefficient of kinetic friction between the locked wheels and the road was measured to be 0.60. Show that the driver of car A was exceeding the 55-mi/h (90 km/h) speed limit before applying the brakes. Find this speed
In: Physics
You are a financial analyst at a major business valuation firm. You are analyzing how a change in beta will impact the present value of corporation that is considering an investment project. The project requires an initial investment of $100 million and will generate a perpetuity of after tax cash of $15 million every year forever. The project’s beta is 2. Assume that risk free rate is 6% and the return on the market is 8%. Please answer the following questions.
What is the net present value of the project ?
What is the highest possible discount rate for the project before its NPV becomes negative ?
What is the highest possible beta estimate for the project before its NPV becomes negative ?
In: Finance