3.

In an international ballroom dancing competition, competitors are scored by a panel of judges on a scale from 0 to 100. The final score for each couple is computed as the average of the scores from all the judges. However, if the number of judges is equal to or greater than 6, and the highest score is given by only one judge, that score is excluded from computing the average. The same applies to the lowest score.

1. Write a method countOccurrences that returns the number of occurrences of a given target value in a given array. Complete the method countOccurrences below.

   Question 3(a) /** Returns the number of times target occurs among the values * in the given array * @param scores an array of values * @param target the target value * @return the number of times target appears among the * values in scores */ public static int countOccurrences(int[] scores, int target)

2. Write a method findMaxAndMin that takes an array scores as a parameter and returns an array of length two, where the first element is the maximum value in scores and the second element is the minimum value in scores. Complete the method findMaxAndMin below.

   Question 3(b) /** Returns an array of two elements in which * the first element is the maximum value in scores and * the second element is the minimum value in scores * Precondition: scores.length > 0; 0 <= scores[k] <= 100 */ public static int[] findMaxAndMin(int[] scores)

3. Write a method averageScore that takes an array scores as a parameter and computes and returns the average score. However, if the size of the array scores is 6 or greater, and the maximum value occurs only once in the array, that value is excluded from computing the average. The same is done for the minimum value.

   In writing this method, assume that the methods countOccurrences from Part (a) and findMaxAndMin from Part (b) work as specified, regardless of what you wrote there. You may not receive full credit if instead of calling these methods you write equivalent code here. Complete the method averageScore below.

   Question 3(c) /** Returns the average of the values in scores. However, * if the size of the array scores is not less than 6 and * the largest value occurs only once in scores, that value * is excluded from computing the average; the same for * the smallest value. * Precondition: scores.length >= 3; 0 <= scores[k] <= 100 */ public static double averageScore(int[] scores)

1. In the short run, monopolistically competitive firms:

2. Product differentiation refers to:

3. In the short run, product differentiation enables firms in monopolistically competitive markets to:

4. If equilibrium quantity for a monopolistic competitive firm is 80 while quantity at minimum efficient scale is 100, then excess capacity is equal to

5. Knowing that Coke controls 80 percent of the cola market and Pepsi controls 20 percent, we can conclude the cola market is:

6. A defining characteristic of an oligopoly is:

7. Competition between oligopolists drives:

Norister Inc. is considering introducing a new product line. This will require the purchase of new fixed assets of $2.4 million. The company estimates that demand for the new product will be approximately 15,000 units per year, with a price per unit of $100. The variable cost of producing each unit of the product is $35, and fixed costs per year will be $100,000. Demand for the product will remain constant for six years, after which both demand and production will cease, and the associated fixed assets will have no salvage value. Depreciation on the fixed assets will be straight-line to zero. The company’s marginal tax rate is 35%, and the required return on the project is 13%. How will the after-tax operating cash flow (ATOCF) change if the number of units sold is 10% less than the projected demand of 15,000 units?

Select one:

a. ATOCF will increase by 10%.

b. ATOCF will decrease by 10%.

c. ATOCF will increase by 8.94%.

d. ATOCF will decrease by 8.94%.

e. ATOCF will remain unchanged.

Norister Inc. is considering introducing a new product line. This will require the purchase of new fixed assets of $2.4 million. The company estimates that demand for the new product will be approximately 15,000 units per year, with a price per unit of $100. The variable cost of producing each unit of the product is $35, and fixed costs per year will be $100,000. Demand for the product will remain constant for six years, after which both demand and production will cease, and the associated fixed assets will have no salvage value. Depreciation on the fixed assets will be straight-line to zero. The company’s marginal tax rate is 35%, and the required return on the project is 13%. Due to forecasting risk, the company estimates that price per unit, variable cost, fixed costs, and quantity sold could vary by ±10%, ±15%, ±5%, and ±10%, respectively. What is the project’s net present value in the worst case scenario?

Select one:

a. -$656,606

b. -$543,413

c. -$368,020

d. -$103,677

e. $43,502

Rate of Return for Stocks and Bonds

Purpose of Assignment

The purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. It allows the student to understand the effects of dividends; capital gains; inflation rates; and how the nominal rate of return affects valuation and pricing. The assignment also allows the student to apply concepts related to CAPM, WACC, and Flotation Costs to understand the influence of debt and equity on the company's capital structure.

Assignment Steps

Resources: Corporate Finance

Calculate the following problems using Excel or a Word document:

Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.

Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?

CAPM: A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?

WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?

Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

Submit your summary and all calculations. Please show all of your work.

Click the Assignment Files tab to submit your assignment.

Ellis Animal Health, Inc., produces a generic medication used to treat cats with feline diabetes. The liquid medication is sold in 100 ml vials. Ellis employs a team of sales representatives who are paid varying amounts of commission. Given the narrow margins in the generic veterinary drugs industry, Ellis relies on tight standards and cost controls to manage its operations. Ellis has the following budgeted standards for the month of April 2017:

Average selling price per vial $ 8.30

Total direct materials cost per vial $ 3.60

Direct manufacturing labor cost per hour $ 15.00

Average labor productivity rate (vials per hour) 100

Sales commission cost per vial $ 0.72

Fixed administrative and manufacturing overhead $990,000

Ellis budgeted sales of 700,000 vials for April. At the end of the month, the controller revealed that actual results for April had deviated from the budget in several ways:



Unit sales and production were 90% of plan.

Actual average selling price decreased to $8.20.

Productivity dropped to 90 vials per hour.

Actual direct manufacturing labor cost was $15.20 per hour.

Actual total direct material cost per unit increased to $3.90.

Actual sales commissions were $0.70 per vial.

Fixed overhead costs were $110,000 above budget.

Calculate the following amounts for Ellis for April 2017:

Required

1. Flexible budgets for 600,000 700,000 and 800,000 units

2. Static-budget and actual operating income

3. Static-budget variance for operating income

4. Flexible-budget operating income

5. Flexible-budget variance for operating income

6. Sales-volume variance for operating income

7. Price and efficiency variances for direct manufacturing labor

8. Flexible-budget variance for direct manufacturing labor

1. The Toronto Diner, opened as a sole proprietorship by Felix Fudd, recorded the following transactions during its initial mon of operations:

a. Rented facilities for $3,000 per month and paid the lessor $9,000 for the first three months

. b. Purchased equipment costing $30,000 on the first of the month. The diner put 20 percent down and borrowed the remainder from Second Bank. (Equipment will be depreciated over sixty months using the straight-line method. Assume a $3,000 salvage value.)

c. Sold 1,800 meals during the month at an average sales price of $15. Twenty percent of the meals were sold on account, while the remainder were cash sales. None of the charges were collected by the end of the month.

d. Cost of food sold percentage is 30%. Food purchases totaled $10,000 during the first month, of which 60 % were paid for during the month.

e. Paid labor costs of 30 % of sales during the month.

f. Paid all other expenses, which totaled $6,000 with cash. g. Felix opened the business on the first of the month by investing $50,000 h. Felix’s tax rate is 30%. Taxes will be paid subsequent to the first month. Determine the net income for the first month of business by filling in the correct amounts below using the information above. Revenue Net sales Expenses Cost of Goods Sold Wages expense Rent Expense Depreciation Expense Other expenses Income before income taxes Income tax expense Net Income 2. Determine the total sources and use of cash for the first month by filling in the correct amounts below using the information from question 7. Cash sources and uses: Paid rent for next 3 months Down payment for equipment Cash sales Food purchases Labor Other expenses Felix equity

1 (Chapter 7). You are considering a new project. In the first year, you expect to sell 9000 units at $50 net cash apiece, giving you operating cash flow of $450,000. At the end of the first year, you will know whether the project is doing “well” or doing “poorly.” If it is doing well, you will expect sales of 15,000 units per year for the next 10 years. If it is doing poorly, you will expect sales of 4,000 units per year for the next 10 years. You also have the option to (a) expand after the first year, or (b) dismantle the project after the first year and sell components for $1.3 million. The initial (time 0) investment cost for the project is $1.9 million. The cost of expansion is an additional $2 million, and doubles your sales projections in the event that the project is successful in the first year. (Expansion doesn’t alter sales projections if the project is not successful in the first year.) Assume the price of the product remains constant at $50 regardless of success or failure. All cash flows are real, and the real discount rate is 15%. For simplicity, assume no taxes, so investment costs and operating cash flows (the net revenues of $50 per unit) are all your cash flows. The probability of success is 40%.

a. What is your best strategy when you experience success after one year: Do you expand, continue operations without expansion, or abandon the project?

b. What is your best strategy when the project does poorly in the first year: Do you expand, continue operations without expansion, or abandon the project?

c. In view of your answers to a) and b), construct a decision tree for this project and evaluate its NPV. Should you invest at time 0?

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 94,000 units and sold 76,000 units. During its second year of operations, it produced 80,000 units and sold 93,000 units. In its third year, O’Brien produced 82,000 units and sold 77,000 units. The selling price of the company’s product is $73 per unit.

3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.)

b. Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.)

4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.)

b. Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.)

Suppose an investor can purchase a 20 year, 5% coupon bond that pays interest semi annually and the price of the bond is 97%. The Par Amount is $100. The yield to maturity is 5.95%. Assume the investor can reinvest the coupon payments at an annual rate of 3%. The bond is only held for 5 years and sold at 89%. Compute the following:

What is the Total Coupon plus Interest on Interest in Dollars?

What is the (Total Interest on Interest) component in Dollars?

What is the Total Rate of Return (in percent) on this bond when sold after 5 years?

​​​​​​​What is the Total Accounting Rate of Return (semiannual equivalent) in percent?

What is the NPV of this investment at a discount rate of 12% ? (use purcahse price of 9,500,00)