Locate the results of a recent survey that shows at least two variables in a newspaper, magazine, or Internet article. Outline the survey data so that your peers can understand the variables and results, and then identify at least one key formula from this module that you could use to evaluate the data. Provide a brief explanation of why you selected the formula you did and why it matters. Also, explain what the formula is, where it is in the textbook, and clearly define your parameters. Be sure to support your statements with logic and argument, citing any sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers and instructors posts, as well.

Methanol is produced by reacting carbon monoxide and hydrogen. A fresh feed stream containing CO and H2 joins a recycle stream and the combined stream is fed to a reactor. The reactor outlet stream flows at a rate of 350 mole/min and contains 10.6 wt% H2 , 64 wt% CO and 25.4 wt% CH3OH. This stream enters a cooler in which most of the methanol is condensed. The liquid methanol condensate is withdrawn as a product, and the gas stream leaving the condenser – which contains CO, H2 and 0.4 mole % uncondensed CH3OH vapor – is the recycle stream that combines with the fresh feed. Determine:

a) the molar flow rates of CO and H2 in the fresh feed

b) the production rate of liquid methanol (mol/min) and

c) the molar flow rate of the recycle stream.

(Draw and completely label the process flow diagram and determine all molar flow rate)

As a shareholder in Pinnacle, Mrs. Paul is excited about the $1,000 EPS (earning per share) she will soon receive in the form of dividends and she begins to plan her around the world cruise. However, as her broker, it is your job to figure out a way to explain why this is not likely to happen but that she might be able to cruise the Hawaiian Islands for a week.

Be sure to emphasis the difference between earning per share and dividends.

Which of the following transactions would be included in GDP for 2013?

A stock price is currently $30. During each two-month
period for the next four months it will increase by 8% or decrease by 10%. The
risk-free interest rate is 4%. Use a two-step tree to calculate the value of a derivative
that pays off [max(30-ST, 0)]2, where ST is the stock price in four months. If the
derivative is American-style, should it be exercised early?

On October 1, 2021, COVID Co. borrowed a $500,000 note at 12% interest and pledged $600,000 in accounts receivable as collateral. Additionally, COVID Co. was charged a finance fee equal to 1% of the borrowed amount. At the end of November, $400,000 of the assigned receivables were collected and remitted to the lender along with accrued interest.

Required:

Prepare journal entries to (A) record the borrowing, the assignment of receivables, (B) the collection on the receivables, and (C) the recognition of interest expense and remittance to the lender.

1. On January 1st, SGMI Co. issued a $795,000, 6.4% semiannual, 10-year bond to yield 7%. On October 31st, the company called 10% of the bonds for 102 plus accrued interest. Please create the journal entry and amortization table for this transaction.

Stock Valuation

Rue Company is a great corporation going through some good times. It has never paid a dividend in the past and is not planning on ever doing so. The CFO, Dr. Rue, expects that the inflation in Europe will be higher than the one in Asia due to the recovery. The main product of Rue Co is a mechanical pencil which is made in the US and sold in South America, Europe and Asia

Recently he (Dr. Rue) was interviewed by the Partition Street Journal. When asked about the free cash flows for the current year (FCF0), Dr. Ruesaid: “The company expects that the after-tax operating income, EBIT(1-T) will be $300 million next year. The depreciation will be $45 million and given the growth prospects, capital expenditures will reach $25million. Net operating working capital will increase by $5million”. In the same interview, he said that investors should expect this FCF0 to grow by and astonishing 50% for the next 2 years, then at 25% for years 3, 4 and 5, after which FCFs are expected to grow at a boring but constant rate of 3% forever.

You searched on Bloomberg and discovered that similar companies have a WACC of 12% and you plan to use it as the discount rate in your calculations. You found out that Rue Co has $5,000 million (5 billion) in debt and $200 million in non-operating assets. The company has 500 million shares outstanding.

You want to invest in this company but you are very concerned about the results of the US election next week. Depending on who wins, you expect EBIT to fluctuate between $275m to $325m and the WACC to fluctuate between 10% to 14%. For this reason, you to have to answer the following questions before investing

1. Under the base case assumptions, what should be the current stock price for Rue Company?

2.   Complete the table below with the changes to EBIT and WACC:

Price of Rue Co under different assumptions

3. Explain how EBIT(1-T) and WACC effect stock prices?

Subject: Tourism and Transport

From the planning stage to the opening of the Kai Tak Cruise Terminal in 2013, the Hong Kong Government have been working hard to promote the development of cruise industry in Hong Kong.

1. Discuss why the Hong Kong government is doing so and if Hong Kong is up for the challenge.   
2. What potential benefits it might bring to Hong Kong.
3. What potential environment problems it might create and suggest potential solutions.