1. A bank has recently acquired a new branch and thus has customers in this new region. They are interested in the default rate in their new region. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 200 files in area A, their current customers, and find that 20 have defaulted. In area B, the new customers, another sample of 200 files shows 12 have defaulted on their loans. At the 10% significance level can we say that the default rates are different?

As the new vice-president of finance, you are
considering refinancing existing bonds with a new issue.
You note in particular a bond issue that has the following details:

Maturity value of bond issue $ 67,000,000
Time to maturity (in years) 10
Time since initial bond issue (in years) 8
Annual coupon rate on existing bond 12.0%
Call Premium
No call allowed during the first 5 years
Starting call premium in year 6 11%
Call premium declines by 0.5% per year staring in year 7
Current long-term interest rates on similar bonds 8.500%
Current short-term interest rates 6.0%
Overlap period (in months) 1
Corporate tax rate 34%
Underwriting and other issue costs $ 900,000

Should the old issue be refunded and replaced with a debt issue with a comparable
maturity and a coupon rate equal to that currently in effect on similar bonds? Show
your calculations.

President Trump proposed the new “America First” policy, in regards to the trade agenda. This new policy may backfire and hurt the economy rather than protect it. A specific part of this new policy are the tariffs Trump imposed on Chinese products, and there are several articles arguing how these tariffs are backfiring and hurting our economy.

However, if these tariffs are so bad, why are we using them? What can they accomplish-potential value they hold- how can we use them to benefit us with this new trade policy?

Critique Trumps "America First" policy in regards to tariffs specifically and debate different viewpoints(competing ideas) in regards to it. How do the arguments relate?

Use credible sources to back up claims and bring different viewpoints

President Trump proposed the new “America First” policy, in regards to the trade agenda. This new policy may backfire and hurt the economy rather than protect it. A specific part of this new policy are the tariffs Trump imposed on Chinese products, and there are several articles arguing how these tariffs are backfiring and hurting our economy.

However, if these tariffs are so bad, why are we using them? What can they accomplish-potential value they hold- how can we use them to benefit us with this new trade policy?

Critique Trumps "America First" policy in regards to tariffs specifically and debate different viewpoints(competing ideas) in regards to it. How do the arguments relate?

Use credible sources to back up claims and bring different viewpoints

The quality of new Ferrari cars is assessed by sending each new car through a certifier who examines every part of the car’s interior and exterior for defects and counts the number of defects. The number of defects averages 0.1 per car.

Note: Make sure to specify the random variables and their distributions. Use the appropriate cumulative distribution tables to compute the probabilities.

(a) Find the probability the next inspected car will have more than 1 defects. (5 pts.)

President Trump proposed the new “America First” policy, in regards to the trade agenda. This new policy may backfire and hurt the economy rather than protect it. A specific part of this new policy are the tariffs Trump imposed on Chinese products, and there are several articles arguing how these tariffs are backfiring and hurting our economy.

****However, if these tariffs are so bad, why are we using them? What can they accomplish-potential value they hold- how can we use them to benefit us with this new trade policy??*****

Critique Trumps "America First" policy IN REGARDS TO TARIFFS SPECIFICALLY and debate different viewpoints(competing ideas)

Use credible sources to back up claims and bring different viewpoints- cite courses where you use them

Talk about the PLUS SIDE of tariffs in regards to (SPECIFICALLY) the US-China trade war. There are plenty of articles degrading these tariffs and how they are bad for the economy, but can you discuss the potential value they hold and how we can use them to benefit in regards to the US-China trade war.

Worldwide Widget Manufacturing, Inc., is preparing to launch a new manufacturing facility in a new location. The company has a capital structure that consists of debt and common and preferred stock. The company is considering changing this capital structure in conjunction with the launch of the new manufacturing facility. The manufacturing facility project is slated to be funded with 30 percent debt, 30 percent preferred stock, and 40 percent common stock. Worldwide Widget Manufacturing has 15 million shares of common stock outstanding. The shares sell at $24.63 per share. The company expects to pay an annual dividend of $1.50 one year from now, after which future dividends are expected to grow at a constant 7 percent rate. Worldwide Widget Manufacturing’s debt consists of 30-year, 9-percent annual coupon bonds with a face value of $180 million and a market value of $185 million. The company’s capital mix also includes 200,000 shares of 12-percent preferred stock trading at par. If Worldwide Widget Manufacturing has a marginal tax rate of 32 percent, what weighted average cost of capital (WACC) should it use as it evaluates this project?

please explain how to get each step. I have seen this question answered but not in a way that I understand it.

Cost of Capital: Cost of New Common Stock

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches to use to account for flotation costs. The first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. Because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting the cost of common equity as follows:

_L

The difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment.

Quantitative Problem: Barton Industries expects next year's annual dividend, D₁, to be $1.96 and it expects dividends to grow at a constant rate g_L = 4.9%. The firm's current common stock price, P₀, is $24.50. If it needs to issue new common stock, the firm will encounter a 4.2% flotation cost, F. Assume that the cost of equity calculated without the flotation adjustment is 12.9% and the cost of old common equity is 12.6%. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.

  %

What is the cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places.

  %

It is required to install a new computer control system. This new computer control system could be purchased at a cost of $125,000. The project working life of this system is 05 years with a salvage value of $50,000. The working capital investment is $23,331 for this project. The annual labor savings due to this project will be $100,000.

Additional annual expenses involve labor expense of $20,000, Material expense of $12,000 & Overhead expense of $8,000.

1. Use Straight Line Depreciation method to calculate the depreciation amount for each year.
2. Develop the income statement for this project given an applied income tax of 40%.
3. Develop the cash flow statement for this project.
4. Draw the cash flow diagram for this project.
5. Is this project justifiable at an MARR of 15%?