Today you observe the following NYMEX Crude Oil ('CL') futures prices, and discount factors associated with each payment date:

Explain how you would calculate the fixed price of a swap from a strip of floating futures prices and discount factors associated with each payment date. What is the value of the swap at the time of entering the contract? (Please use your own language and no calculation is needed.)

Explain how you would value a swap that is the exchange of a strip of floating futures prices for a given fixed futures price. (Please use your own language and no calculation is needed.)

Determine the fixed price in a 12 month swap with a floating price based on the NYMEX CL futures price, and payment dates corresponding to first 12 discount factors in the table.

Determine the fixed price in a 24 month CL swap based on these futures prices.

Value a long position in 24 month CL swap with a fixed price of $95.00/bbl and a notional quantity of 10,000 bbl (i.e., 10 NYMEX contracts/month). Discuss why the value of this swap is different from zero.

6. Buffalo Company manufactures and sells adjustable canopies that attach to motor homes and trailers. For its budget, Buffalo estimated the following: Selling price$420Variable cost per canopy $205Annual fixed costs $180,000Net Income$250,000Income Tax Rate30% The May financial statements reported that sales were not meeting expectations. For the first 5 months of the year, only 350 units had been sold at the established price with variable costs as planned. It was clear that the net income projection for the year would not be reached unless some actions were taken. A management committee presented the following mutually exclusive alternatives to the president: A. Reduce the selling price by $60 per unit. The sales forecast that at this significantly reduced price is which 2,850 units can be sold during the remainder of the year. Total fixed costs and variable costs per unit will stay as budgeted. B. Lower variable cost per unit by $10 using less expensive direct materials and slightly modified manufacturing techniques. The selling price will also be reduced by $30 and sales of 2,200 units are expected for the remainder of the year. C. Reduce fixed costs by $15,000 and lower the selling price by 5%. Variable costs per unit will be unchanged and sales of 2,000 units are expected for the remainder of the year. Required: (1) If no changes are made to the selling price or cost structure, determine the number of units that Buffalo must sell to break even and achieve its net income objective.(2) Determine which alternative Buffalo should select to achieve maximum net income.

Materials Variances

Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materials and labor:

During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 271,500 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 79,200 hours at $14.00 per hour.

Required:

1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. Enter favorable values as negative numbers and unfavorable values as positive numbers.

2. CONCEPTUAL CONNECTION Suppose the Boise plant manager investigates the materials variances and is told by the purchasing manager that a cheaper source of leather strips had been discovered and that this is the reason for the favorable materials price variance. Quite pleased, the purchasing manager suggests that the materials price standard be updated to reflect this new, less expensive source of leather strips. Should the plant manager update the materials price standard as suggested? Why or why not?

1. No , The suggestion of the purchasing manager is premature. A favorable materials price can produce an effect on both materials usage and labor variances.
2. Yes, the purchasing manager is correct. This will improve the overall profitability of the company.
3. No , The suggestion of the purchasing manager is incorrect. The matierals are not available and so changes to the price standard should not be made

The price per share of stock for a sample of 25 companies was recorded at the beginning of 2012 and then again at the end of the 1st quarter of 2012. How stocks perform during the 1st quarter is an indicator of what is ahead for the stock market and the economy. The sample data are provided in the Excel Online file below. Construct a spreadsheet to answer the following questions.

a. Let  denote the change in price per share for company i where  1st quarter of 2012 price per share minus the beginning of 2012 price per share. Use the sample mean of these values to estimate the dollar amount a share of stock has changed during the 1st quarter

$  (to 2 decimals)

b. What is the 95% confidence interval estimate of the population mean change in the price per share of stock during the first quarter? Interpret this result.

The mean price per share has increase between % and % over the three-month period (to 1 decimal

The current price of a stock is $65.88. If dividends are expected to be $1 per share for the next five years, and the required return is 10%, then what should the price of the stock be in 5 years when you plan to sell it? If the dividend and required returns remained the same; and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1? Why or why not?

I only need d) to be solved, thanks

(a) Derive the answer to price of the stock in 5 years (i.e. Find: Ps.) The question does not specify expected dividends or the required rate of return for beyond five years. Assume that following the fifth year (i.e. in the 6th year) that dividends grow at a constant rate forever and that the required rate of return remains at 10%

b) Find the growth rate of dividends that is consistent with your answer in part (a) to Ps. (Hint: use the Gordon growth model.) Now suppose instead that Ps-101.

c) What is the price of the stock today? Finally, suppose that dividends stay at S1 forever.

d）Unlike question b) above, consider a “two-stage Gordon growth model” where the growth rate of dividends is greater than required rate of return over the first five years. As before, suppose D1 =1 and ke =.1. However, now dividends grow from year 1 until year 5 at 20%, and after year 5 they stop growing. What is the price of the stock today?

Question 1. The average number of cereal calories is around 150. Create the column “Cereal Calories” in the New Workbook in Excel and Generate the data for 46 ready-to-eat cereals by using the following function: =RAND()*(Upper limit-Lower Limit)+Lower limit, where Lower limit -is 80 and Upper limit is 270. Copy and Paste special>Values in order to continue to work on the generated data. Make the format of values as a number without decimal places (Format Cells>Number)

Question 2. Construct a stem and leaf plot for the previously obtained data

Question 3. Create a frequency table with 7 classes. The table should have the following headings [Class limits] [Class boundaries] [Frequency] [Cumulative frequency]

Question 4. Describe the data from the table above.

Question 5. Add column “Relative frequency” to the table above, obtain relative frequency and draw a vertical bar chart to present the data

Question 6. Draw histogram, describe modality, skewness, and kurtosis of the data.

Question 7. Make a research and list 5 brands of cereals with calories (create a table). Discuss the impact of cereals in a daily nutrition

(Note: Please Solve on excel file and share excel file instead of pic please please help me in this i,m struggling hardly good reviews will be given with Thanks)

Write a for loop from 1 to 3 using i as the variable. For each value of i:

Create a vector x of 10 random numbers between 0 and 1. Create a second vector t which is equal to ten integers from 1 to 10. Plot x versus t in figure 1. Use hold on to keep each plot. Use a different color for the line for each value of i.

At the very end, add the text 'time' using xlabel to the horizontal axis, and the text 'f(t)' using ylabel to the vertical axis.

This is what I have so far:

% Creating a 'for' loop from 1 to 3 using 'i' as the variable
for i=1:3
% For each value of 'i', creating a vector 'x' of 10 random numbers between 0 and 1
x=rand(1,10);
% For each value of 'i', creating a second vector 't' which is equal to 10 integers from 1 to 10
t=randi([1,10],10);
end

% Plotting 'x' versus 't' in figure 1
figure(1),plot(x,t)

% Using 'hold on' to keep each plot
hold on

% Using a different color for the line for each value of 'i'
%add code

% Adding the text 'time' using 'xlabel' to the horizontal axis
xlabel('time')

% Adding the text 'f(t)' using 'ylabel' to the vertical axis
ylabel('f(t)')

Variable cost per hour worked by cleaning staff ……………………

Total fixed cost for a month in which less than 70 hours are worked by cleaning staff …………………………..

Total fixed cost for a month in which more than 70 hours are worked by cleaning staff ………………………..

The financial analyst at Medupe Company has prepared the following sales and cash disbursement estimates (in thousand rand) for the period February to June of the current year

Historically Medupe Company has had 30% of sales being for cash. Of the credit sales, 70% are collected one month after the sale, and the remaining 30% are collected two months after the sale. The company has access to a R20000 revolving line of credit at a cost of 12% interest per year, assuming 365-day year. No administrative fees are applicable.

All purchases and other disbursements are procured on a cash basis. The depreciation for the year is estimated at R1 500 The beginning cash balance at April 1 is R1 500.

Required
Draw up a cash budget for Medupe Company for April, May and June and determine how much the requisite short-term financing by way of revolving line of credit will cost, if utilised.

QUESTION 2 Marvel Industries is a South African based manufacturer of “Solasheet”, an award-winning skylight. The company is currently investigating two investment projects. The information is given below: Project Chuck Involves extending the company’s production facility at Westville, Kwa-Zulu Natal. The plant will cost R12 million and is expected to create an additional annual profit of R2.26 million for the 8 years life of the project. The following expenses were included in the annual profit:  Depreciation was calculated on the straight-line method, over the life of project.  Share of existing overheads, borne by head office amounting to R0,3 million p.a. DC 6 Project Larry Involves setting up an independent manufacturing facility in Taiwan. The cost of the facility would be an initial outlay 105.40 million Taiwan dollars. This would result in annual sales of 44.8 million Taiwan dollars, for the 8 years of the project. The annual fixed costs and variable costs are 4.3 million and 10.6 million Taiwan dollars respectively. Note:  Marvel Industries current cost of capital is 12%.  The Taiwanese inflation is expected to exceed the South African inflation by 2% p.a. throughout the life of the project.  The current spot rate exchange is 5 Taiwan dollars to the Rand. Required: Compute the necessary calculations and advise Marvel Industries if it is worth investing in neither, in one or both of these two opportunities..