Apex Roofing Inc. has the following balance sheet (in millions of dollars): Current assets $3.0 Accounts payable $1.2 Net fixed assets 4.0 Notes payable 0.8 Accrued wages and taxes 0.3 Total current liabilities $2.3 Long-term debt 1.2 Common equity 1.5 Retained earnings 2.0 Total assets $7.0 Total liabilities and equity $7.0 Last year's sales were $10 million, and Apex estimates it will need to raise $2 million in new debt and equity next year. You have identified the following facts: (1) it pays out 30 percent of earnings as dividends; (2) a profit margin of 4 percent is projected; (3) fixed assets were used to full capacity; and (4) assets and spontaneous liabilities as shown on last year's balance sheet are expected to grow proportionally with sales. If the above assumptions hold, what sales growth rate is the firm anticipating? Use the AFN equation

Greta, an elderly investor, has a degree of risk aversion of A = 4 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 8% per year, with a SD of 18%. The hedge fund risk premium is estimated at 10% with a SD of 36%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual returns on the S&P 500 and the hedge fund in the same year is zero, but Greta is not fully convinced by this claim.

If the correlation coefficient between annual portfolio returns is actually 0.3, what is the covariance between the returns? (Round your answer to 3 decimal places.)

Annual covariance=

Magana, a private limited company in tourism industry, in order to improve customer services and provide management with timely and quality information, the company is contemplating purchasing 6 microcomputers at sh 112000 each. Installation cost for all of them will amount sh 60,000.It is estimated that once installed the company will increase pre-tax operating benefit from sh 11, 769,000 to sh 11,995,000 annually. Computers are expected to last for 8 years after which this will be obsolete with no residue value. The operations manager argues the company needs will have to grow the computers in only 5 years. The computers will be salvaged for 32,000 each after 5 years 30% tax bracket. The cost of capital is 16% and straight line method of depreciation is used to depreciate all fixed assets.

Required.

a] Suppose the probability useful life of these computers is determined as follows;

                  Probability                                         useful life

                  0.3                                                       5 years

                  0.5                                                       8 years

                  0.2                                                       10 years

Determine whether Magana should purchase the computers.

Problem 1

The manager of a construction company must decide whether to build single family homes, apartments, or condominiums. Profits (in thousands of dollars) are given in the following table and depend on various possible population trends. The probability of a declining population is 0.3, the probability for a stable population is 0.5 and the probability of a growing population is 0.2

Payoff table (in thousands of dollars):

a)           If the manager is an extreme optimist, which alternative would she choose?

b)           If the manager is an extreme pessimist, which alternative would she choose?

c)           If the manager wants to minimize maximum regret, which alternative should she choose?

d)           If the manager wants to maximize expected values, which alternative should she choose?

e)           What is the most amount of money that she should be willing to spend to get more information about the possible population trends?

A regression analysis of 32 months’ data relating a company's monthly advertising expenses (x, in thousands of dollars) to its sales (y, in thousands of dollars) yields the following output: • ?0=100 • ?1=5.3 • Standard error of the estimate ? = ?? = 56 • Standard error for ?1, ???1 =0.3 Furthermore, when ? ∗=9, the standard error for a confidence interval for the estimated mean response is given by ???̂ = 29, while the standard error for a prediction interval is ???̂ = 63.1.

(a) (3 pts) Is the regression significant at a 5% level of significance?

(b) (3 pts) Say that the company spends $9000 on advertising in a given month. What would you expect their sales to be?

(c) (3 pts) Find a 95% confidence interval for the average sales over all months in which they plan to spend $9000 on advertising.

(d) (3 pts) Assume that you know that in January of 2020, they spent $9000 on advertising, but you don’t have data on their sales. Find a 95% confidence interval for their predicted sales.

a. The pH meter was improperly calibrated, so that the pH readings on the instrument were 0.3 pH units too low.

A. pKa would be too low and Ka would be too high

B. pKa would be too high and Ka would be too low

C. neither would change

b. An endpoint/equivalence point was erroneously read as 27.20 mL whereas the reading was actually 26.80 mL.

A. pKa would be too low and Ka would be too high

B. pKa would be too high and Ka would be too low

C. neither would change

D. none of these

c. In Step 2, instead of adding 75 mL of water, 150 mL of water was added.

A. pKa would be too low and Ka would be too high

B. pKa would be too high and Ka would be too low

C. neither would change

D. none of these

Please explain why you chose the answer you chose, thank you!

use python.

Consider 4 blocks with different masses mi connected by ropes of negligible mass. Three of the blocks lie on an inclined plane and the fourth lies in the direction of the gravity vector. The coefficients of friction between the blocks and the inclined plane are µi. The equations of motion governing these four blocks are described by the following system of equations:

T1 + m1a = m1g(sin(theta) - µ1*cos(theta))

-T1 + T2 +m2a = m2g(sin(theta) - µ2*cos(theta))

-T2 + T3 + m3a = m3g(sin(theta) - µ3*cos(theta))

-T3 + m4a = -m4g

Where the Ti denote the tensile forces in the ropes and a is the acceleration of the system. Determine a and the three Ti for θ = 45°, g = 9.82 m/s2 , {mi} = [10, 4, 5, 6]^T kg, and {µi} = [0.25, 0.3, 0.2]^T

The output to the command terminal prompt within Spyder should read:

T1 =

T2 =

T3 =

a =

All values should be printed out to 4 significant digits of accuracy and units must be assigned.

1. We regressed M&Ms yearly sales in period t (S_t) with an AR(4) model including an intercept. Our hypothesized model is given as follows:

S_t= β₀  + β₁ (S_t-1)    ₊    β₂ (S_t-2)     +  β₃ (S_{t -3}) + β₄ (S_t-4) + .

Our OLS-estimated model is given below. Numbers in the parentheses under the coefficients are p-valuesfor the corresponding parameter estimation. Significance level=5%.

= 5.60   1.05S_t-1        0.57S_t-2        0.32S_t-3    0.051S_t-4

(0.3)      (0.006)           (0.32)            (0.040)        (0.562)

           N=36      R²= 0.55     Adj- =0.53     Coefficient Var=1.57

1. What is the value of R^2 ? How to interpret it?

2. Which lag variables are significant based on the p-values?

3. Given the historical sales of M&Ms in the table, using this model, predict the sales of M&Ms in 2018 () and 2019 ()

The following table provides a historical summary of key financial ratios for Reza Corporation.

Required:

1. With reference to the appropriate ratios, analyse the trend in Reza Corporation’s profitability providing plausible reasons for any changes. (6 marks)

2. Explain what an inventory turnover ratio is measuring and how inventory turnover impacts on Reza Corporation’s profitability. (6 marks)

c. Reza Corporation publishes on its website and discloses key corporate social responsibility (CSR) activities and important topics of interest to stakeholders. Describe an environmental performance indicator and a social performance indicator that may be of interest to Reza Corporation’s stakeholders.