Computing Present Value of Terminal Residual Operating Income
Use the following data to compute the present value of the terminal period ROPI for each of the four firms A through D. Assume a forecast horizon of four years.
| A | B | C | D | |
|---|---|---|---|---|
| Terminal period ROPI | $208,011 | $46,767 | $93,674 | $124,622 |
| Weighted average cost of capital (WACC) | 8.1% | 11.9% | 9.7% | 13.9% |
| Terminal growth period rate | 2.0% | 1.0% | 2.5% | 2.0% |
Do not round until your final answers. Round your answers to the
nearest whole number.
| A | B | C | D | ||||
|---|---|---|---|---|---|---|---|
| PV of terminal period ROPI | $Answer | $Answer | $Answer | $Answer |
In: Finance
In the morning, after having had nothing to eat since the night before, 75 participants were randomly assigned to one of three groups (25 in each group): Those who were fed a large meal, those who were fed a small meal, and those who were fed nothing. Then all participants were given a memory test. The results were as follows:
|
Memory Test Score |
|||
|
Large Meal |
Small Meal |
Nothing |
|
|
M |
2.1 |
2.5 |
2.9 |
|
S2 |
1.0 |
1.2 |
.8 |
Based on these results, does amount of breakfast eaten affect
memory?
(Use the .05 level.)
Use the five steps of hypothesis testing.
In: Statistics and Probability
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A rookie quarterback is in the process of negotiating his first contract. The team's general |
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manager has offered him three possible contracts. Each contract lasts for four years. |
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All of the money is guaranteed and is paid at the end of each year. The payment |
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terms of the contracts are as follows: |
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(dollars in millions) |
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|
Year |
Contract 1 |
Contract 2 |
Contract 3 |
||||
|
1 |
$1.50 |
1.0 |
3.5 |
||||
|
2 |
$1.50 |
1.5 |
0.5 |
||||
|
3 |
$1.50 |
2 |
0.5 |
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|
4 |
$1.50 |
2.5 |
0.5 |
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|
The quarterback discounts all the cash flows at 12%. Which of the three |
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contracts offers the most value? (Hint: Calculate the present value of future cash flows) |
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In: Finance
. Weston Industries has a debt-to-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
a. What is Weston’s cost of equity capital?
b. What is Weston’s unlevered cost of equity capital?
c-1. What would the cost of equity be if the debt-to-equity ratio were 2?
c-2. What would the cost of equity be if the debt-to-equity ratio were 1.0?
c-3. What would the cost of equity be if the debt-to-equity ratio were 0?
In: Accounting
In: Physics
The barrier to C-C bond rotation in bromoethane
is 15 kJ/mol. What energy can you assign to an
H-Br eclipsing interaction?
Use strain energy increments from the table below in your
calculation.
(Specify units, kJ/mol; Calculate to nearest 0.1 energy units)
|
Energy cost |
|||
|
Interaction |
Cause |
(kJ/mol) |
(kcal/mol) |
| H ↔ H eclipsed | Torsional strain |
4.0 |
1.0 |
| H ↔ CH3 eclipsed | Mostly torsional strain |
6.0 |
1.4 |
| CH3 ↔ CH3 eclipsed | Torsional and steric strain |
11.0 |
2.6 |
| CH3 ↔ CH3 gauche | Steric strain |
3.8 |
0.9 |
In: Chemistry
The followings are parameters of a RLC-series circuit. Use the given information to answer the remaining questions.
R = 7.5 Ω
L = 8.2 x 10-3 H
C = 1.0 x 10-5 F
Frequency f = 450 Hz
Peak voltage V0 = 15V
Find the following:
(a) inductive reactance of the circuit
(b) capacitive reactance of the circuit
(c) impedance of the circuit
(d) rms current in the circuit
(e) rms voltage across the resistor
(f) rms voltage across the inductor
(g) rms voltage across the capacitor
(h) power factor of the circuit
(i) phase angle
(j) power dissipated
(k) resonant frequency of the circuit
In: Physics
The followings are parameters of a RLC-series circuit. Use the given information to answer the remaining questions.
R = 7.5 Ω
L = 8.2 x 10-3 H
C = 1.0 x 10-5 F
Frequency f = 450 Hz
Peak voltage V0 = 15V
Find the following:
(a) inductive reactance of the circuit
(b) capacitive reactance of the circuit
(c) impedance of the circuit
(d) rms current in the circuit
(e) rms voltage across the resistor
(f) rms voltage across the inductor
(g) rms voltage across the capacitor
(h) power factor of the circuit
(i) phase angle
(j) power dissipated
(k) resonant frequency of the circuit
In: Physics
ASSETS LIABILTIES
Cash 10 Core Deposits 60
Fed funds 30 Fed funds 50
Loans (floating) 80 Euro CDs 30
Loans (fixed) 40 Equity 30
TOTAL 170 170
The fixed rate loans are 10 year, 8% (annual) coupon bonds with a yield of 6%.
Cash and fed funds have a 0 duration.
Floating loans have a duration of 1.0.
All liabilities have a duration of 0.50.
2. What is the duration of the assets?
3. What is the duration of the liabilities?
4. What is the duration gap?
5. If all rates increase by 2%, what is the approximate percentage change in equity?
In: Accounting
A 69-year-old woman is in the hospital undergoing treatment for recently diagnosed breast cancer.
WBC 1.0 Band neutrophils 5
RBC 2.90 Seg neutrophils 15
Hgb 9.0 Lymphs 80
Hct 27.1 Monos
MCV 93.4 Eos
MCH 31.3 Basos
MCHC 33.2 Metamyelocytes
RDW 12.9 Myelocytes
PLT 5.9 Promyelocytes
1. Describe the peripheral blood findings.
2. What additional tests should be performed?
3. Based on all the data provided, what condition is most likely?
4. What is the expected condition of the bone marrow?
5. What information is most diagnostic?
6. Comment on the lymphocytosis.
In: Biology