Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $3.9 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $4.7 million. In five years, the aftertax value of the land will be $5.1 million, but the company expects to keep the land for a future project. The company wants to build its new manufacturing plant on this land; the plant and equipment will cost $31.52 million to build. The following market data on DEI’s securities is current:

DEI uses G.M. Wharton as its lead underwriter. Wharton charges DEI spreads of 9 percent on new common stock issues, 7 percent on new preferred stock issues, and 5 percent on new debt issues. Wharton has included all direct and indirect issuance costs (along with its profit) in setting these spreads. Wharton has recommended to DEI that it raise the funds needed to build the plant by issuing new shares of common stock. DEI’s tax rate is 38 percent. The project requires $1,150,000 in initial net working capital investment to get operational. Assume Wharton raises all equity for new projects externally.

RISK MANAGEMENT

Background

Paul , age 55, immigrated to Canada from Scotland in his 20s. Over the years, he built a small chain of budget-rate hotels in the GTA and has become wealthy beyond his dreams. His private corporation, Nessie Inc., owns the hotels and, in some cases, the land on which the hotels are built.

Paul and his first wife divorced years ago and she returned to Scotland. He has no ongoing obligations toward his first wife and is now happily married to Lisa, 45. He has a son, Gavin, 28, from his first marriage and a daughter Leslie, 17, with Lisa. Gavin is actively involved in his father’s business and Lisa wants Leslie to become involved also.

Information Gathering Meeting

At your first meeting with Paul, you gathered the following information:

Paul

Lisa

• Not employed
• Serves on the board of the Toronto General Hospital Foundation
• Home jointly owned with Paul
• Other Personal Assets:

Gavin

• Employed by Nessie Inc.; reports to a General Manager who reports to Paul

Leslie

• Full-time student. Note: Leslie has a new boyfriend, 25, who the family thinks may be a drug dealer.

Planning to Date

On her marriage to Paul, Lisa purchased a Universal Life policy with a death benefit of $500,000 and named Paul beneficiary. She did not name a contingent beneficiary. Paul and Lisa recently purchased a joint and last-to-die Term-to-100 insurance policy with a death benefit of $2,000,000. Their respective estates are beneficiary. This is their only personal life insurance.

Paul and Lisa have both named each other as beneficiaries on their RRSPs.

Paul plans to expand his business and projects that Nessie will continue to grow at 6 - 8% per year. He expects that Gavin will take over the business eventually, as long as he proves himself capable. He hasn’t given any thought as to whether Leslie will eventually join Nessie.

Paul and Lisa have met with their lawyer to discuss their wills but the wills haven’t been drawn up yet.

• In Scenario Two Paul and Lisa are still living and looking for detailed estate planning

Scenario---Paul and Lisa’s accident was just a terrible nightmare. They are still living but the nightmare has scared them both. They want to make sure that an appropriate estate plan is in place as soon as possible.

QUESTION :

What steps should Paul take to further facilitate the viability of Nessie in the event of his sudden death? (300 words)

RISK MANAGEMENT

Background

Paul , age 55, immigrated to Canada from Scotland in his 20s. Over the years, he built a small chain of budget-rate hotels in the GTA and has become wealthy beyond his dreams. His private corporation, Nessie Inc., owns the hotels and, in some cases, the land on which the hotels are built.

Paul and his first wife divorced years ago and she returned to Scotland. He has no ongoing obligations toward his first wife and is now happily married to Lisa, 45. He has a son, Gavin, 28, from his first marriage and a daughter Leslie, 17, with Lisa. Gavin is actively involved in his father’s business and Lisa wants Leslie to become involved also.

Information Gathering Meeting

At your first meeting with Paul, you gathered the following information:

Paul

Lisa

• Not employed
• Serves on the board of the Toronto General Hospital Foundation
• Home jointly owned with Paul
• Other Personal Assets:

Gavin

• Employed by Nessie Inc.; reports to a General Manager who reports to Paul

Leslie

• Full-time student. Note: Leslie has a new boyfriend, 25, who the family thinks may be a drug dealer.

Planning to Date

On her marriage to Paul, Lisa purchased a Universal Life policy with a death benefit of $500,000 and named Paul beneficiary. She did not name a contingent beneficiary. Paul and Lisa recently purchased a joint and last-to-die Term-to-100 insurance policy with a death benefit of $2,000,000. Their respective estates are beneficiary. This is their only personal life insurance.

Paul and Lisa have both named each other as beneficiaries on their RRSPs.

Paul plans to expand his business and projects that Nessie will continue to grow at 6 - 8% per year. He expects that Gavin will take over the business eventually, as long as he proves himself capable. He hasn’t given any thought as to whether Leslie will eventually join Nessie.

Paul and Lisa have met with their lawyer to discuss their wills but the wills haven’t been drawn up yet.

• In Scenario Two Paul and Lisa are still living and looking for detailed estate planning

Scenario---Paul and Lisa’s accident was just a terrible nightmare. They are still living but the nightmare has scared them both. They want to make sure that an appropriate estate plan is in place as soon as possible.

QUESTION :

What steps should Paul take to further facilitate the viability of Nessie in the event of his sudden death? (300 words)

Which of the following is NOT a red flag of related party transaction that may be a sham?

Patient is a 10-year-old male ,good health. Felt pain in his left calf at lunchtime despite not being injured.

Ingrown hair in the location of the pain. That evening small amount of pus from the ingrown hair.

Next morning, found cellulitis on the calf and more pus. By the afternoon, the area of the cellulitis had grown significantly and the patient rushed to the medical center.

Vital signs measured, including pulse, respiration, blood pressure and temperature. All the signs were within the normal limits.

Physical examination of calf, which was red and warm to the touch but with no area of obvious fluctuance. No lymphadenopathy was observed. The physician punctured the central area of the cellulitis, near the area that the patient indicated was the ingrown hair, three times with a 20-gauge needle but no pus was drained. The patient was referred to surgery service and the surgeon gave him 2 g of ceftriaxone intramuscularly and started him on oral cephalexin. The patient returned to the medical center 48h later with obvious area of fluctuance in the centre of the cellulitis area and reported low-grade fever during the past 48 hours. It was obvious that pus is present.

Which factors from the case description have to be taken into consideration when analysing the case?

A survey of 500 major U.S. manufacturing plants was completed in order to gain information about water pollution near each plant facility. Data have been collected on the amount of WATER POLLUTANTS (PL) found within ½ mile of each plant. (No plants were within 50 miles of each other). The pollutants were measured as the average parts per million based on each gallon of water sampled for each plant. For each plant, the AMOUNT OF WATER (W) used and the AVERAGE RAINFALL (R) was recorded. Plants were classified to be within one of four TYPES (chemical, paper, consumer durable goods, others) and the plant AGE (under 15 years; 15 years or older) was noted. A scale for LOCAL ENVIRONMENTAL REGULATIONS ENFORCEMENT was made (Strong enforcement; Moderate enforcement; Minimal to No Enforcement). Using these data, (20 points) a. Specify a linear model that would allow you test the effects of the impact of each variable above. b. Interpret each parameter in your model. c. Show how you would test the hypothesis that chemical and paper plant pollution is equal. d. How would you test the impact of local regulation enforcement on plant’s pollution

Pretend for a minute that you are advising your candidate for President of the USA. As you near your first debate against your opposing party nominee, you realize that economic growth is going to be a main topic.

The catch is that you are not going to be debating war, health care, etc. You are restricted to showing who did a better job growing our economy and can only use GDP. You can use variations of GDP, like GDP per capita, percentage change in GDP, GDP compared to another nation, etc.

Now think you are the Republican Advisor, t demonstrate how economic growth was superior under President Trump (2017-present).

Keep in mind that you do not need to use the entire term of their presidency to make your point. For instance, perhaps you feel that President Bush is responsible for GDP growth in 2009 due to his actions in term. Similarly President Obama may be responsible for some of the growth under President Trump.

Your job is to write up a short analysis using historic GDP, to support your candidate in answering who is better at creating economics growth, Republicans or Democrats.

The level of carbon monoxide air pollution in parts per million (ppm) is measured at an entrance ramp to interstate highway I-80 near Iowa City each day. Measurements from two different samples are summarized as follows:

Sample 1: n = 96 x¯ = 126.8 s = 140.2

Sample 2: n = 143 x¯ = 126.8 s = 140.2

Let µ = mean daily level of carbon monoxide pollution at the entrance ramp, in ppm •

Interval 1 is a 90% confidence interval for µ calculated from Sample 1.

Interval 2 is a 99% confidence interval for µ calculated from Sample 1.

Interval 3 is a 99% confidence interval for µ calculated from Sample 2.

4. Calculate Interval 1.

(a) (89.04, 164.56)

(b) (89.19, 164.41)

(c) (102.99, 150.61)

(d) (103.03, 150.57)

(e) (103.26, 150.34)

5. Calculate Interval 2.

(a) (89.04, 164.56)

(b) (89.19, 164.41)

(c) (102.99, 150.61)

(d) (103.03, 150.57)

(e) (103.26, 150.34)

6. Calculate Interval 3.

(a) (89.22, 164.38)

(b) (89.44, 164.16)

(c) (103.05, 150.55)

(d) (107.34, 146.26)

(e) None of the answers is correct to the second decimal place

Airnova Inc. has two types of bonds, Bond D and Bond F. Both have 8 percent coupons, make semiannual payments, and are priced at par value. Bond D has 2 years to maturity. Bond F has 15 years to maturity.

Airnova Inc. is considering four different types of stocks. They each have a required return of 20 percent and a dividend of $3.75 for share. Stocks, A, B, and C are expected to maintain constant growth rates in dividends for the near future of 10 percent, 0 percent, and -5 percent, respectively. Stock D is a growth stock and will increase its dividend by 30 percent for the next four years and then maintain a constant 12 percent growth rate after that.

Discuss

If interest rates suddenly rise by 2 percent, what is the percentage change in both bonds?

If interest rates suddenly fall by 2 percent, what is the percentage change in both bonds?

What does this tell you about the interest rate risk of longer-term bonds?

What is the dividend yield for each of the four stocks?

What is the expected capital gains yield?

Discuss the relationship among the various returns that you find for each of the stocks.

A transparent cylindrical tube with radius r = 1.50 cm has a flat circular bottom and a top that is convex as seen from above, with radius of curvature of magnitude 2.60 cm. The cylinder is filled with quinoline, a colorless highly refractive liquid with index of refraction n = 1.627. Near the bottom of the tube, immersed in the liquid, is a luminescent LED display mounted on a platform whose height may be varied. The display is the letter A inside a circle that has a diameter of 1.05 cm. A real image of this display is formed at a height s′ above the top of the tube, as shown in

What is the minimum tube height H for which this display apparatus can function? Express your answer with the appropriate units.

The luminescent object is moved up and down periodically so that the real image moves up and down in the air above the tube. A mist in the air renders this display visible and dramatic. If we want the image to move from 60.0 cm above the top of the cylinder to 1.00 m above the top of the cylinder during this motion, what is the corresponding range of motion for the object distance s? Find the minimum value of s. Express your answer with the appropriate units.

Find the maximum value of s. Express your answer with the appropriate units.