Question 16

The cost of capital associated with an investment does not depend on the risk of that investment.

Select one:

True

False

Question 17

Your company purchased a piece of land five years ago for $150,000 and subsequently added $175,000 in improvements. The current book value of the property is $225,000. There are two options for future use of the land: 1) the land can be sold today for $350,000 on a net after-tax basis; 2) your company can destroy the past improvements and build a factory on the land. In consideration of the factory project, what amount (if any) should the land be valued at?

Select one:

a. The sales price of $350,000 less the book value of the improvements.

b. The present book value of $225,000.

c. The original $150,000 purchase price of the land itself.

d. The property should be valued at zero since it is a sunk cost.

e. The after-tax sales value of $350,000.

Question 18

Generally, bankruptcy costs have no impact on a firm’s decision to increase debt financing.

Select one:

True

False

Question 19

Watson's Automotive has a $400,000 bond issue outstanding that is selling at 85 percent of face value. Watson's also has 21,000 shares of common stock outstanding with a market price of $21 a share. What is the weight of the debt as it relates to the firm's weighted average cost of capital?

Select one:

a. 44 percent

b. 42 percent

c. 48 percent

d. 40 percent

e. 41 percent

Question 20

The market value of a firm that invests in projects providing a return less than its WACC should increase over time.

Select one:

True

False

A newly issued bond pays its coupons once a year. Its coupon rate is 4%, its maturity is 10 years, and its yield to maturity is 7%.

a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Holding-period return             %

b. If you sell the bond after one year when its yield is 6%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax holding-period return             %

d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 6% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 2% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Realized compound yield before taxes             %

e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

After-tax two-year realized compound yield             %

Upon graduating from college, your parents host a graduation party in celebration for you at their house.

50 of your friends attend along with several family members. At the end of the party everyone is departing the house. As the last guests filter out the front door, you thank them for attending and close the door.

3 minutes later you hear a loud knock on the front door. You open the door and see that one of your trusted friends is standing there and is very upset. She tells you that after getting into her car she realized her $9,000 Rolex watch was missing. Immediately, you, your friend and your family members conduct a search of the house, front yard and your friend's pocketbook, coat pockets and vehicle to no avail - the watch cannot be located.

Questions:

1) Should you call the police?

2) Is this apparent loss covered by the parents' home owner's insurance?

3) If not, what insurance might cover this loss?

4) What should happen if your friend receives a replacement watch via an insurance claim then, 3 months later, your mother calls you to say she discovered the lost watch on the ground while pruning a front lawn plant?

please use linux or unix to complete

Diff command

The diff command displays differences between two files on a line-by-line basis. It displays the differences as instructions that you can use to edit one of the files ( using the vi editor) to make it the same as the other. When you use diff, it produces a series of lines containing Append (a), Delete (d), and Change (c) instructions. Each of these lines is followed by the lines from the file that you need to append, delete, or change. A less than symbol (<) precedes lines from file1. A greater than symbol (>) precedes lines from file2.

You will now need four files. These are telnos, telnos2, telnos3, telnos4. These files are all short files that contain names, departments, and telephone numbers. This is what they look like.

To make it easier to copy you can use the * (wildcard) to copy these files. Type in the command:

                cp /tmp/csc3321/telnos* .  

Remember the . (period) means current directory and will copy all of the telnos files at one time and assign them the names that they have in the instructor's file

In order to see how diff works, type in:

                diff telnos telnos2

What was the result?
________________________________________________________________________________________________________________________________________________________________________________________________________________________

The difference between these two files (telnos and telnos2) is that the 4th line in telnos is missing from telnos2. The first line that diff displays (4d3) indicates that you need to delete the 4th line from file telnos to make the two files match. The 4 is the line number and the (d) is delete. The line number to the left of each of the a,c, or d instructions always pertains to file1. Numbers to the right of the instructions apply to file2. The diff command assumes that you are going to change file1 to file2. The next line that diff displays starts with a less than (<) symbol indicating that this line of text is from file1. Next type in:

                diff telnos telnos3

What was the result?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

In this case, the second line has the (>) greater than sign which means that the extra line is in file2. The a means you must append a line to the file telnos after line 2 to make it match telnos3. Append means to add on to the end. Next is an example of the change feature. Type in the following command:

                diff telnos telnos4

What was the result? __________________________________________________________

What lines do you need to change in order to make the two files alike? ________________________________________________________________________________________________________________________________________________

Notice that the three hyphens indicate the end of the text in the first file that needs to be changed and the start of the second file that needs to be changed. Next, copy telnos to telnos5. What command did you use to do this? ________________________________________________________________________

Next, type in:

                diff telnos5 telnos2

What was the answer that you received? _________________________________________________________________________________________________________________________________________________________________________________________________________________

Use the vi editor to change telnos5 to match the file telnos2. Then check to see if they are now alike.

What command did you use? _________________________________________________________

What was the result? __________________________________________________

What is the output of the diff command when the files match?
_______________________________________________________________________________

When the two files are alike, there is no response. Unfortunately, Unix is not always user-friendly.

Uniq Command

The uniq command displays a file, removing all but one copy of successive repeated lines. If the file has been sorted, uniq ensures that no two lines that it displays are the same. Sort telnos and telnos3 and then send them to a new file called tel2. Type in the following:

                sort telnos telnos3 > tel2

Next look at the file, tel2. What does it contain?___________________________________________________________________________________________________________________________________________________________________________________________________

Next issue the command:

                uniq tel2

What was the result?__________________________________________________________________________________________________________________________________________________________________________________________________________________

The uniq command has three options. These are:

-c   Causes uniq to precede each line with the number of occurrences of the line in the input file

-d   Displays only lines that are repeated

-u   Displays only lines that are not repeated

Issue the command:

                uniq -u tel2

What was the result?__________________________________________________________________________________________________________________________________________________________________________________________________________________

Next, issue the command:

                uniq -d tel2

What was the result?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Grep Command

The grep command searches one or more files for a specified pattern. Normally each matching line is copied to the standard output. Two options that can be used with grep are:

                -i             ignore case of alphabetic characters
                -n             precede each line printed by its relative line number in the input file

Use the line numbers in the output of grep to answer the questions in the following sections. Issue the command:
               grep -n H telnos

What was printed? ________________________________________________________________________________________________________________________________________________________________________________________________________________________

Issue the command:
              grep -ni m telnos

What was printed this time?___________________________________________________________________________________________________________________________________________________________________________________________________________________

1. What are some key intellectual property protections, if any, that CACI international possess? When do these protections (e.g., patents) expire? How does your company intend to recoup lost revenues due to any patent or other intellectual property protection expirations?
2. Find the Corruption Perceptions Index (CPI) score for two countries where CACI International does business, one country with a relatively high score and one country with a relatively low score. Search for news stories about corporate financial scandals in these two countries. Prepare a short summary of news stories about financial scandals in these countries. Briefly describe what you perceive are the risks of corruption, such as paying bribes, that your selected company might face in these countries.
3. Determine CACI international mode of entry into foreign markets. This should be based upon a serious analysis of your company’s risk-return tradeoff. In your opinion, has your company taken the right approach?
4. Does CACI international have an exit strategy? Recall that exit strategies are to be determined before entry into the foreign market, rather than after entry.

You are saving for the college education of your two children. They are two years apart in age; one will begin college 14 years from today and the other will begin 16 years from today. You estimate your children’s college expenses to be $38,000 per year per child, payable at the beginning of each school year. The appropriate interest rate is 6.8 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college for each child. How much money must you deposit in an account each year to fund your children’s education?

1. Jacobs & Johnson, an accounting firm, employs 15 accountants, of whom 9 are CPAs. If a delegation of 3 accountants is randomly selected from the firm to attend a conference, what is the probability that 3 CPAs will be selected? (Round your answer to three decimal places.)'

2. Among 500 freshmen pursuing a business degree at a university, 301 are enrolled in an economics course, 220 are enrolled in a mathematics course, and 130 are enrolled in both an economics and a mathematics course. What is the probability that a freshman selected at random from this group is enrolled in each of the following? (Enter your answers to three decimal places.)

(a) an economics and/or a mathematics course

(b) exactly one of these two courses

(c) neither an economics course nor a mathematics course

Classifying Cost Behavior
For each of the graphs displayed below, select the most appropriate cost behavior pattern where the lines represent the cost behavior pattern, the vertical axis represents total costs, the horizontal axis represents total volume, and the dots represent actual costs. Each pattern may be used more than once.

Using the drop-down box next to each cost description below, select the number to the graph that best depicts the cost behavior pattern.

Sales Territory and Salesperson Profitability Analysis

Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson:

a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson.

a. 2. Interpret the report.

Paul earns the highest  contribution margin and has the highest  contribution margin ratio. This is because he sells the most  units, has a low  commission rate, and sells a product mix with a high  manufacturing margin. Steve also sells products with a high  average manufacturing margin but at a high  commission rate. Colleen has the poorest  contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a low  average sales price per unit, she has the second highest  total contribution margin.

b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place.

b. 2. Interpret the report.

The Southwest Region has $ more sales and $ more contribution margin. In the Southwest Region, the salesperson with the highest sales unit volume, has the highest  contribution margin ratio. The Southwest Region has the highest  performance, even though it also has the salesperson with the lowest  contribution margin and contribution margin ratio. The Northeast Region contribution margin is less  than the Southwest Region because of the outstanding performance of Paul .