Part A. Assume the cost of equity, preferred stock and debt of JPM Inc are 20%, 15% and 12%, respectively. Their capital structure is 40% equity, 20% preferred stock and 40% debt. What is the weighted cost of capital (WACC) if the tax rate is 40%?

Part B. JPM Inc proposes to borrow $10 million capital to expand their operations, $4 million in bonds and the rest in common stock. They can issue stocks for $43.75 by paying a dividend of $3.50 next year and maintain a growth rate of 8%. They can issue 20-year bonds for $699.07 paying 8% coupon, paid semi-annually. What is the weighted cost of capital assuming a tax rate of 35%.

Part C. JPM Inc is planning to invest $1,000,000 in new equipment that will increase its after-tax cash flows by $300,000 for the next five year. Its capital structure is 50% debt and 50% equity. If the cost of equity is 18% and after-tax cost of debt is 8%, should they undertake the project?

During the pandemic, stockpiling behavior have been criticized in the newspapers and described as irrational. From a game theory perspective, stockpiling of toilet paper can be modeled as a strategic game. Let’s assume that we have two players who can choose between option 1: running to buy toilet paper (stockpiling behavior); and option 2: waiting to buy toilet paper. They believe that there is a risk that supermarket will run out of stock. The following matrix gives the payoffs of each choice, where in each cell, the first number is the payoff of player A and the second number is the payoff of player B.

1. Explain the strategic interactions behind the stockpiling behavior (answer in 70-130 words).
2. Find the equilibrium by elimination of dominated strategies (answer in 70-130 words).
3. Does individual rationality lead to a socially desirable outcome? Why? (answer in 70-130 words)

During the pandemic, stockpiling behavior have been criticized in the newspapers and described as irrational. From a game theory perspective, stockpiling of toilet paper can be modeled as a strategic game. Let’s assume that we have two players who can choose between option 1: running to buy toilet paper (stockpiling behavior); and option 2: waiting to buy toilet paper. They believe that there is a risk that supermarket will run out of stock. The following matrix gives the payoffs of each choice, where in each cell, the first number is the payoff of player A and the second number is the payoff of player B. Player B Wait to buy Run to buy Player A Wait to buy 3, 3 1,4 Run to buy 4,1 2,2 a. Explain the strategic interactions behind the stockpiling behavior (answer in 70-130 words). b. Find the equilibrium by elimination of dominated strategies (answer in 70-130 words). c. Does individual rationality lead to a socially desirable outcome? Why? (answer in 70-130 words)  

What kind of quantity is length?
ratio
ordinal
interval
nominal

What type of graph is best for expressing percentages of a whole?

We are selecting seven CD's out of twelve to take the mountains. How many possible selections are there, given that order doesn't matter?

Karen scored a 76 on an exam whose mean is 74 and whose standard deviation is 8. Find her z score.

At a college, 60% of the students are women. If we select 7 students at random, what is the probability that exactly 5 of tyen are women (to the nearest hundredth)?

The heights of students or normally distributed with a mean of 59" and a standard deviation of 5" what is the probability that a randomly selected student will be between 57 and 65" tall?

We are to select a president vice president secretary and treasurer out of a club with 15 members assuming that no one can hold more than 1 office how many selections are possible?

Discuss the relevance of local government to National Development,state at least seven (7) reasons pointing to the relevance of local government. 1000 words.

1. What are the Social & Cultural Influences on Personality? I

2. Identify the 8 Stages in Erikson’s theory of psychosocial development, the age range of people in this stage, the psychosexual mode, and the psychosocial crisis that occurs during this stage. For the last two bullets, add the main points on the topic of what the crisis produces and what occurs when an individual cannot overcome what emerges from the crisis, and how Erikson’s theory of this stage compares to Freud’s.

1. A hospital’s human resources department is comparing work performance with work shift times (Shifts A, B, C).
   1. What are the two qualitative variables? Classify each of them as nominal or ordinal.

2. Write the hypotheses for a chi-square test of homogeneity.

3. The data from the study is shown below. Fill in the empty table with the row percentages for each shift. Round to the nearest tenth of a percent.

4. Does there seem to be a difference in the distribution of work performance among the shifts? Why or why not?

5. The p-value from a chi-square test of homogeneity on the performance data is 0.304. Does the conclusion, based on the p-value, match your intuition in part b)? Give a thorough explanation.

? Your company has two? divisions: One division sells software and the other division sells computers through a direct sales? channel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computer? division, in terms of both risk and financing. You go online and find the following? information: Dell's beta is 1.18?, the? risk-free rate is 4.2 %?, its market value of equity is $ 67.3 ?billion, and it has $ 708 million worth of debt with a yield to maturity of 6.5 %. Your tax rate is 38 % and you use a market risk premium of 5.8 % in your WACC estimates.

a. What is an estimate of the WACC for your computer sales? division?

b. If your overall company WACC is 11.6 % and the computer sales division represents 44 % of the value of your? firm, what is an estimate of the WACC for your software? division?

(round to two decimal places)

Suppose the market demand can be separated into two distinct markets, where p₁=80-5y₁,p₂=180-2y₂, and the common cost function is C=50+40(y₁+y₂).

a. Determine the equilibrium prices and quantities in each market and the overall profits that result from actions of a third degree price-discriminating monopoly.

b. Determine the price elasticity of demand in each market, evaluated at the equilibrium prices and quantities.

c. What is the relationship between the price elasticity of the demand in each market and the price prevailing in each market?