The computation and interpretation of the degree of financial leverage (DFL)

It is December 31. Last year, Torres Industries had sales of $160,000,000, and it forecasts that next year’s sales will be $152,000,000. Its fixed costs have been—and are expected to continue to be—$64,000,000, and its variable cost ratio is 1.00%. Torres’s capital structure consists of a $15 million bank loan, on which it pays an interest rate of 8%, and 750,000 shares of common equity. The company’s profits are taxed at a marginal rate of 40%. Given this data, complete the following sentences:

Note: For these computations, round each EPS to two decimal places.

The following are the two principal equations that can be used to calculate a firm’s DFL value:

DFL (at EBIT = $X)=Percentage Change in EPSPercentage Change in EBITDFL (at EBIT = $X)=Percentage Change in EPSPercentage Change in EBIT

DFL (at EBIT = $X)=EBITEBIT−Interest−Preferred Dividends(1 – Tax Rate)DFL (at EBIT = $X)=EBITEBIT−Interest−Preferred Dividends(1 – Tax Rate)

Consider the following statement about DFL, and indicate whether or not it is correct.

All other factors remaining constant, the larger the proportion of common equity used by the firm in its capital structure, the smaller the firm’s DFL.

False

True

1. The U.S. Department of Health and Human Services Agency for Healthcare Research and Quality has identified seven Portfolios of Research. The full list can be viewed at http://www.ahrq.gov/cpi/portfolios/index.html

2. Two of the Portfolios of Research that are of key importance to this week's learning are

(1) Health Information Technology and (2) Patient Safety.

Describe how these two Portfolios of Research relate to the ONC's Health Information Technology Patient Safety Action and Surveillance Plan: June 2013 (Washington, DC: Office of the National Coordinator for Health Information Technology, 2013).

please include references

Consider the two savings plans below. Compare the balances in each plan after

1111

years. Which person deposited more money in the​ plan? Which of the two investment strategies is​ better?

YolandaYolanda

deposits

​$450450

per month in an account with an APR of

55​%,

while

ZachZach

deposits

$ 5000$5000

at the end of each year in an account with an APR of

5.55.5​%.

The balance in

YolandaYolanda​'s

saving plan after

1111

years was ​$

.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as​ needed.)

7-1 Hoare partition correctness
The version of PARTITION given in this chapter is not the original partitioning
algorithm. Here is the original partition algorithm, which is due to C. A. R. Hoare:
HOARE-PARTITION.A; p; r/
1 x D AOEp
2 i D p 1
3 j D r C 1
4 while TRUE
5 repeat
6 j D j 1
7 until AOEj x
8 repeat
9 i D i C 1
10 until AOEi x
11 if i < j
12 exchange AOEi with AOEj
13 else return j
a. Demonstrate the operation of HOARE-PARTITION on the array A D h13; 19; 9;
5; 12; 8; 7; 4; 11; 2; 6; 21i, showing the values of the array and auxiliary values
after each iteration of the while loop in lines 4–13.

The next three questions ask you to give a careful argument that the procedure
HOARE-PARTITION is correct. Assuming that the subarray AOEp : : r contains at
least two elements, prove the following:
b. The indices i and j are such that we never access an element of A outside the
subarray AOEp : : r.
c. When HOARE-PARTITION terminates, it returns a value j such that p j < r.
d. Every element of AOEp : : j is less than or equal to every element of AOEj C1: : r
when HOARE-PARTITION terminates.
The PARTITION procedure in Section 7.1 separates the pivot value (originally
in AOEr) from the two partitions it forms. The HOARE-PARTITION procedure, on
the other hand, always places the pivot value (originally in AOEp) into one of the
two partitions AOEp : : j and AOEj C 1: : r. Since p j < r, this split is always
nontrivial.
e. Rewrite the QUICKSORT procedure to use HOARE-PARTITION.

An article in the Transportation Research Part E Journal ["Arc Routing Problems to Restore Connectivity of a Road Network" (2016)] considered ways of re-establishing the connectivity of road networks after a natural disaster — earthquake. Estimates of the probabilities of a randomly chosen road being under light debris, moderate debris, and heavy debris conditions after different disaster magnitudes are shown in the following table. Disaster magnitude is equally likely to be low, moderate or high.

(a) What is the probability that a randomly selected road is under moderate debris after an earthquake?

Round your answer to two decimal places (e.g. 98.76).

(b) What is the probability that a randomly selected road is under moderate or heavy debris after an earthquake?
Round your answer to two decimal places (e.g. 98.76).

Question 3 Small Town hospital splits its service into two categories: general care and obstetrics. Medicare will pay the hospital 120% of the total cost incurred to treat Medicare patients. The hospital has two service departments: general records and dietary. The general records’ costs are allocated to departments based upon a log of hours spent for each department. Dietary costs are allocated on the basis of the number of meals served. Results for the past period are summarized below Records Dietary General Care Obstetrics Labour cost $3,000 $8,000 $40,000 $60,000 Supplies $4,000 $35,000 $25,000 $15,000 Meals served 100 100 700 200 Record hours 40 50 100 50 During the period 60% of the general care patients were Medicare patients. None of the obstetrics patients were Medicare patients.

Required If you were the hospital’s senior accountant, how would you determine the amount of the medicare reimbursement? Advise the finance director, with supporting calculations, the implications of different service department cost allocation approaches in determining the amount of Medicare reimbursement.

13. Consider the following two investment alternatives: First, a risky portfolio that pays a 18% rate of return with a probability of 22% or a 7.2% rate of return with a probability of 40%. Second, a Treasury bill that pays 3.4%. If you invest $100,000 in the risky portfolio, your expected profit after one year would be ________.

2. Sophia, a 58-year-old moderately obese woman, is seeing her primary health care provider. Sophia is concerned because she cut her foot two weeks ago and the wound is not healing. The health care provider notes that Sophia has lost 30 pounds since her last appointment. Despite her weight loss, she states that she has been very hungry lately, and is eating much more than usual. She also reports that she is constantly thirsty, and is experiencing frequent urination. Based on her symptoms and diagnostic studies performed by her health care provider, Sophia learns that she has diabetes mellitus. (6 points) a. What type of diabetes mellitus do you think Sophia has? Why? b. Explain to Sophia what measures she will have to take to control her symptoms. c. Explain two complications that can occur with uncontrolled diabetes mellitus. d. Sophia has a niece that has had diabetes since she was six years old. What type of diabetes does Sophia’s niece most likely have? Sophia wants to know how their conditions are similar and how they are

different. How would you answer her?

Risky Business is looking at a project with the estimated cash flow as​ follows:

Initial investment at start of​ project:$12,200,000

Cash flow at end of year​ one: $2,196,000

Cash flow at end of years two through​ six:$2,440,000 each year

Cash flow at end of years seven through​ nine:$2,635,200 each year

Cash flow at end of year​ ten: $2,027,077

Risky Business wants to know the payback​ period, NPV,​ IRR, and PI of this project. The appropriate discount rate for the project is 13​%. If the cutoff period is six years for major​ projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.

What is the payback period for the new project at Risky​ Business?

____years  ​(Round to two decimal​ places.)

Under the payback​ period, this project would be Accepted or rejected?

What is the NPV for the project at Risky​ Business?

​$____(Round to the nearest​ cent.)

Under the NPV​ rule, this project would be Accepted or rejected?

What is the IRR for the new project at Risky​ Business?

____% (Round to two decimal​ places.)

Under the IRR​ rule, this project would be Accepted or rejected?

What is the PI for the new project at Risky​ Business?

______ ​(Round to two decimal​ places.)

Under the PI​ rule, this project would be Accepted or rejected?

Update the code from the questions if necessary.

#include

#include

/*

Program sorts an array of integers using a selection sort.

The general algorithm repeatedly finds the smallest number

in the array and places it at the front of the list.

*/

using namespace std;

int find_small_index (int start_index, int numbers []);

void swap_values (int index1, int index2, int numbers []);

int main(int argc, char *argv[])

{

    // array of numbers

    int numbers [10] = {7, 9, 21, 16, 65, 8, 32, 1, 17, 41};

    int start_index; // current starting spot for search

    int small_index; // index of the smallest number in the array

    int index;        // index used for print the array values

    start_index = 0;

    // continue finding the smallest value and placing it

    // at the front of the list

    while (start_index < 9)

    {

          small_index = find_small_index (start_index, numbers);

          swap_values (small_index, start_index, numbers);

          start_index++;

    }

    cout << "\n\nThe sorted array is:\n";

    for (index = 0; index < 10; index++)

        cout << numbers [index] << " ";

    cout << "\n\n";

    return 0;

}

int find_small_index (int start_index, int numbers [])

{

    int small_index, // smallest index to be returned

        index;       // current index being viewed

    small_index = start_index;

    for (index = start_index + 1; index < 10; index++)

        if (numbers [index] < numbers [small_index])

           small_index = index;

    return small_index;

}

void swap_values (int index1, int index2, int numbers [])

{

     int swapper;

     swapper = numbers [index1];

     numbers [index1] = numbers [index2];

     numbers [index2] = swapper;

}

1. What value would find_small_index return for the following array?

[0]    [1] [2]    [3]   [4]   [5]    [6]   [7]   [8] [9]

2. Assume that the array in question 1 is being used, will the value of the Boolean expression in the if statement in find_small_index be true or false when index is equal to 3 in the for loop? Explain your answer.

3.What is the point of the assignment small_index = start_index; at the beginning of find_small_index? How does this help the function to accomplish its goal?

4. start_index is increased by 1 each time through the loop in main. When find_small_index is called with start_index equal to 5, what must be true about the array values in indexes 0 through 4?

5. In the while loop in main, start_index only goes up to 8 (start_index < 9). Explain why the loop does not need to run when start_index equals 9 (the last index in the array).

6. In swap_values, swapper is declared as an int type. Why?