1. If the economy enters a boom, the stock of Company E will return 20% and the stock of Company F will return 40%. On the other hand, if the economy enters a recession, the stock of Company E will return -10% and the stock of Company F will return -25%. The boom state is one-and-one-half times as likely as the recession state. The risk-free rate in the market is 2%, while the risk premium of the market portfolio is 6%. You are planning to set up a portfolio of these two securities with a beta of 1.6. Assuming that these two securities are fairly priced according to the CAPM, what should be their weights in the portfolio?

Please show all work.

Lumber Corp's common stock trades at a price of $40 per share. Last year's dividend was $1.6 per share and is expected to grow by 5% per year. Flotation costs for common stock have been estimated at 6%.

The company's preferred stock is selling at $50 and has an annual dividend of $4.

Lumber Corp. has bonds outstanding with an average coupon rate of 12% and a yield to maturity of 9%.

The firm's optimum capital structure is 45% equity, 15% preferred stock and 40% debt, and its tax rate is 40%.

What is the (after-tax) cost of debt?

What is the cost of preferred stock?

What is the cost of retained earnings?

What is the cost of new common stock?

What is the WACC, assuming the company doesn't have to issue any new stock?

A stock is expected to pay a dividend of $1 per share in two months and in five months. The stock price is $50, and the risk-free rate of interest is 8% per annum with continuous compounding for all maturities. An investor has just taken a short position in a six-month forward contract on the stock.
Required

1. What are the forward price and the initial value of the forward contract?
2. Three months later, the price of the stock is $48 and the risk-free rate of interest is still 8% per annum. What is the forward price and the value of the short position in the forward contract?

hello! this is my C++ ASSIGNMENT. Pls my professor is very delicate when it comes to grading. I am beginner, if you can please provide me with comments I will appreciate it!!

The Weather Service Bureau department has data representing monthly rainfall for a year and we would like to create a table categorizing each month as rainy (rainfall 20% higher than average) dry (rainfall 25% lower than average) or average. The data file for monthly rain fall is called rainfall.txt.

rainfall.txt

95
100
120
130
135
145
155
185
190
160
130
120

Store the data file in the same folder of your lab6.cpp.
Output
The year's average monthly rainfall was 139 mm.
September has the highest rainfall (190 mm).
January has the lowes rainfall (95 mm)
Month      Rainfall(mm)   Classification
-------      ---------------      --------------
    1                   95                   Dry
    2                 100                   Dry
    3                 120               Average
    4                 130               Average
    5                 135               Average
    6                 145              Average
    7                 155              Average
    8                 185                Rainy
    9                 190                Rainy
10                 160             Average
11                 130             Average
12                 120             Average

Program Requirements:
Implement the following functions in the program:

void inputRainfall(int rainFal l[], int size)
The function reads the monthly rainfall from the file rainFall.txt and stores them in the array rainFall
int calculateAverageRainFall(int rainFall [], int size)
Return the average monthly rainfall
void classifyAndDisplayRainfall(int rainFall[], int months);
Classify and display each month as average, rainy, or dry.

1. True or False: Disaster Planning is not part of the BCP?

2. True or False: you still need a BCP or DRP if you have business liability insurance, asset replacement insurance and natural disaster insurance

3. True or False: If a business cannot operate, the BCP assists in bringing the business back to life and operational readiness.

4. True or False: a BIA helps define the scope of the BCP itself.

5. True or False: The purpose of having documented IT system, application and data recovery procedures/steps is to help achieve the RTO defined by executive management?

6. True or False: the BCP should be updated at least once a year.

7. Which of the following is NOT true. A BCP helps mitigate the risk of:

Q 2-25 Identify the basic accounting equation. Q 2-26 What is the relationship between the accounting equation and the double-entry system of recording transactions? Q 2-27 Define the following: a. Permanent accounts b. Temporary accounts Q 2-28 A typical accrual recognition for salaries is as follows: Q 2-36 Describe the purchase method of accounting for a business combination. Q 2-37 Consolidated statements may be issued to show financial position as it would appear if two or more com- panies were one entity. What is the objective of these statements? Q 2-38 What is the basic guideline for consolidation? Q 2-39 Where must a company’s code of ethics be made available? Q 2-40 Describe the Treadway Commission. Q 2-41 WhyistheCOSOreportoninternalcontrolsystems important under requirements of the Sarbanes-Oxley Act? Q 2-42 Under Sarbanes-Oxley, the auditing firm will include which two reports with the audited statements? (Note: These two reports can be combined into one report.) Q 2-43 Under Sarbanes-Oxley, management must include what report with the audited statements? Q 2-44 Private companies are not under Sarbanes-Oxley. Why do some private companies follow the law? Q 2-45 Indicate the two approaches to presenting con- solidated statements. Q 2-46 Describe how a company could be required to consolidate another company in which it has no or minor voting stock. Q 2-47 Consolidation rules are similar between coun- tries. Comment. Salaries Expense Salaries Payable $1,000 (increase) 1,000 (increase) Explain how the matching concept applies in this situation. Q 2-29 Why are adjusting entries necessary? Q 2-30 Why aren’t all transactions recorded in the gen- eral journal? Q 2-31 Describe the filing deadline for Form 10-K. Q 2-32 Identify the usual forms of a business entity and describe the ownership characteristic of each. Q 2-33 Why would the use of insider information be of  concern if the market is efficient?

Complete the following cost and revenue schedule

Average

Quantity           Total          Marginal            Total               Marginal           Total

Price       Demanded       Revenue        Revenue             Cost                Cost                  Cost

$20                   0                                                               $8

$18                   1                                                             $14

$16                   2                                                             $22

$14                   3                                                             $32

$12                   4                                                             $44

$10                   5                                                             $58

   $8                  6                                                             $74

   $6                  7                                                             $92

   $4                  8                                                          $112

   $2                  9                                                          $147

a. Graph the demand, MR, and MC curves.

b. At what rate of output are profits maximized within this range?

c. What are the values of MR and MC at the profit-maximizing rate of output?

d. What are total profits at that output rate?

e. If a competitive industry confronted the same demand and costs, how much output is produced in the short run?

f. What would happen to long-run price in perfect competition?

Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $550,000 per year; if he works a 50-hour week, the company's EBIT will be $625,000 per year. The company is currently worth $3.2 million. The company needs a cash infusion of $1.3 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes.

a. What are the cash flows to Tom under each scenario? (Enter your answers in whole dollars, not millions of dollars. Do not round intermediate calculations and round your answers to the nearest whole dollar amount. (e.g., 32))

Scenario-1 Debt issue:

Cash flows

40-hour week $ _________

50-hour week $ _________

Scenario-2 Equity issue:

Cash flows

40-hour week $ __________

50-hour week $ __________

b. Under which form of financing is Tom likely to work harder?

Debt issue or Equity issue

FYI: THIS IS A NEW PROBLEM WITH NEW A SET OF DATA.. PLEASE DO NOT PROVIDE OLD ANSWERS.

Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $595,000 per year; if he works a 50-hour week, the company's EBIT will be $715,000 per year. The company is currently worth $3.65 million. The company needs a cash infusion of $1.75 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes.

a. What are the cash flows to Tom under each scenario? (Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations.)

Scenario-1
Debt issue:

Scenario-2
Equity issue:

b. Under which form of financing is Tom likely to work harder?

__________Debt issue

or

__________Equity issue