Celebrity plc. has a target debt-equity ratio of 0.8. Its WACC is 10.5% and the tax rate is 35 per cent
(a) If the firm's cost of equity is 15 per cent what is its pre-tax cost of debt?
(b) If instead you know that the after-tax cost of debt is 6.4 per cent, what is the cost of equity?
In: Accounting
The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European call option on the stock with a strike price of $28 that expires in 12months. Each step is 6months, the continuously compounded risk-free rate is 8% per annum. Calculate the European call option price when u=1.2 and d=0.8.
In: Finance
Calculate the following binomial probability by either using one of the binomial probability tables, software, or a calculator using the formula below. Round your answer to 3 decimal places. P(x | n, p) = n! (n − x)! x! · px · qn − x where q = 1 − p P(x > 15, n = 20, p = 0.8) =
In: Statistics and Probability
For a right-sided system specified by the transfer
function
H(z) = z/(z - 0.5)and an input x[n] = (0.8)n u[n]
find the poles of the response Y[z] and the ROC.
(Hint: Find X(z). H(z) = Y(z)/X(z). Find individual poles’ ROC and
then find the common region of convergence)
In: Electrical Engineering
You have a wire of length L = 1.7 m for making a square coil of a dc motor. The current in the coil is I = 0.8 A, and the magnetic field of the motor has a magnitude of B = 0.31 T. Find the maximum torque exerted on the coil when the wire is used to make (a) a single-turn square coil and (b) a two-turn square coil.
In: Physics
1. Dunder Mifflin recently expanded its supply to include not just paper, but also copiers. David Wallace, the chief financial officer, claims that the expansion
is a smashing success, with the copier production process producing defective parts only 0.7% of the time. Michael Scott is not superstitious. . . but he is
a little stitious. He believes that David Wallace’s claim is incorrect. He randomly selects 750 copier parts and finds 12 that are defective. Do these data provide
evidence at the 10% level that the proportion of defective copier parts is not 0.7%?
(a) Define the appropriate parameter and hypotheses.
(b) Check that the appropriate assumptions hold.
(c) Calculate the appropriate test statistic. Show your work.
(d) Find the rejection region.
(e) Use your results from the test to provide support for your decision about the null hypothesis.
(f) Summarize the results of your hypothesis test in context.
2. As regional co-manager of Dunder Mifflin, Jim suggests using the p-value approach to double check behind
Michael. Find the appropriate p-value (use appropriate probability notation) and provide support for a decision about H0. Does your conclusion change at all?
In: Statistics and Probability
Better Than That Corporation makes a product with the following standard costs:
|
Standard Quantity or Hours |
Standard Price or Rate |
|||||
|
Direct materials |
3.5 |
grams |
$ |
1.00 |
per gram |
|
|
Direct labor |
0.7 |
hours |
$ |
11.00 |
per hour |
|
|
Variable overhead |
0.7 |
hours |
$ |
2.00 |
per hour |
|
The company planned to produce 3,200 units of output during July and reported the following actual results concerning this product in July.
|
Actual output |
3,000 |
units |
|
|
Actual direct labor-hours |
1,910 |
hours |
|
|
Purchases of raw materials |
12,100 |
grams |
|
|
Actual price of raw materials purchased |
$ |
1.20 |
per gram |
|
Actual direct labor rate |
$ |
11.40 |
per hour |
|
Actual variable overhead rate |
$ |
2.10 |
per hour |
The company applies variable overhead on the basis of direct labor-hours. Assume all of the materials purchased were used during the month to produce the 3,000 units.
In: Accounting
Is the national crime rate really going down? Some sociologists say yes! They say that the reason for the decline in crime rates in the 1980s and 1990s is demographics. It seems that the population is aging, and older people commit fewer crimes. According to the FBI and the Justice Department, 70% of all arrests are of males aged 15 to 34 years†. Suppose you are a sociologist in Rock Springs, Wyoming, and a random sample of police files showed that of 37 arrests last month, 21 were of males aged 15 to 34 years. Use a 5% level of significance to test the claim that the population proportion of such arrests in Rock Springs is different from 70%.
(a) What is the level of significance?
0.05
State the null and alternate hypotheses.
H0: p = 0.7; H1: p ≠ 0.7
b) What sampling distribution will you use?
The standard normal, since np > 5 and nq > 5.
What is the value of the sample test statistic? (Round your answer
to two decimal places.)
-1.73
Find the P-value of the test statistic. (Round your answer to four decimal places.)
Please help me find the P value! I cannot figure it out. Can you show steps?
In: Statistics and Probability
A bank wants to know if the enrollment for new savings accounts has improved at various branches after offering a free iPhone X to customers. Use the data from "iphoneX" sheet in excel
Run the appropriate statistical test with α=0.05. Which of the following are correct? More than one answer is possible.
|
There was a decrease of 0.7 people enrolled on average in a new savings account after offering a free iPhone X. |
||
|
There was an increase of 0.7 people enrolled on average in a new savings account after offering a free iPhone X. |
||
|
The test was NOT statistically significant at α=0.05 |
||
|
The test was statistically significant at α=0.05 |
| before iPhoneX | after iPhoneX |
| 69 | 34 |
| 35 | 28 |
| 28 | 11 |
| 9 | 45 |
| 50 | 88 |
| 24 | 89 |
| 31 | 25 |
| 6 | 2 |
| 88 | 54 |
| 19 | 20 |
| 31 | 95 |
| 74 | 94 |
| 7 | 74 |
| 21 | 1 |
| 17 | 28 |
| 82 | 100 |
| 24 | 71 |
| 84 | 42 |
| 88 | 29 |
| 72 | 2 |
| 13 | 24 |
| 55 | 70 |
| 22 | 11 |
| 25 | 34 |
| 38 | 2 |
| 15 | 14 |
| 3 | 56 |
| 83 | 52 |
| 59 | 80 |
| 96 | 14 |
In: Statistics and Probability
You are required to design a watch tower. The watch tower is circular and has an outer diameter of 1500mm. The tower is built of 2 skins of masonry brick work. The supplier data sheet says that the density of the brickwork is 1900 kg/m3 . The tower has a slab at the top and watchmen sit there. The tower is built on a square concrete slab 2m by 2m. the slab is 300mm thick. It has finishes of 50mm on it. The concrete slab sits on masonry walls that are 4m high above ground level. These walls are also double skin walls. The foundation is a strip footing. The geotechnical engineer has given you an allowable bearing pressure of 300 kPa at a depth of 1000mm below ground level. The height of the watch tower from the top of the concrete slab to the top of the tower is 10m. Determine the minimum width of the foundation. Also determine the factored loads in the foundation? Use factors 1.2 DL + 1.6 LL.
In: Civil Engineering