1. Widget Inc. is expected to have the following free cash flows:

After then, the free cash flows are expected to grow at the industry average of 5% per year. Using the discounted free cash flow model and the weighted average cost of capital of 10%:

a. Estimate Widget Inc. enterprise value

b. If Widget Inc. has 10 million in cash, 3 million in debt, and 10 million shares outstanding what is their estimated share price?

The term structure shows the following Treasury spot rates: Maturity in years 1 2 3 4 5 Spot Rate in % 0.6 1.1 1.6 1.9 2.6 Attempt 1/10 for 10 pts. Part 1 What is the implied 1-year forward rate one year from now? 4+ decimals Attempt 1/10 for 10 pts. Part 2 What is the implied 1-year forward rate two years from now? 4+ decimals Attempt 1/10 for 10 pts. Part 3 What is the implied 1-year forward rate three years from now? 4+ decimals Attempt 1/10 for 10 pts. Part 4 What is the implied 1-year forward rate four years from now? 3+ decimals

MATCH THE DESCRIPTION OF EACH TERM

1 ID   

2 STACK

3 SEGMENT REGISTER

4 GENERAL REGISTER

5 POP INSTRUCTION ACTS LIKE

6 PUSH INSTRUCTION ACTS LIKE

A READ

B ES

C TRANSLATE INSTRUCTIONS

D STORAGE AREA

E DX

F WRITE

The Hoylake Rescue Squad receives an emergency call every 1, 2, 3, 4, 5, or 6 hours, according to the following probability distribution:

The squad is on duty 24 hours per day, 7 days per week.

a. Simulate the emergency calls for three days (note that this will require a “running,” or cumulative, hourly clock) using the random number table.

1. Glycolysis

2. Transition step

3. TCA cycle

4. Electron transport chain

For each of the above, answer the following questions:

Where in the cell does it take place? Prokaryote vs Eukaryote

Number of ATP molecules produced?

Number of NADH/FADH2 produced?

What goes in, and what leaves? (reactants vs end products)

part a

. Let A = {1,2,3,4,5},B ={0,3,6} find

1. A∪B

2. A∩B

3. A\B

4. B \ A

Part b

. Show that if A andB are sets,

1. (A\B)⊆A

2. A∪(A∩B)=A

Part c. Determine whether each of these functions from Z to Z is one-to one

1. f(x)=x−1
2. f(x)=x2 +1
3. f(x) = ⌈x/2⌉

Part c. Let S = {−1,0,2,4,7}, find f(S) if

1. f(x)=1
2. f(x)=2x+1
3. f(x) = ⌊x/5⌋

4. f(x)=⌈(x2 +1)/3⌉

Part D. Determine whether each of these functions from Z to Z is onto

1. f(x)=x−1
2. f(x)=x2 +1

3. f(x) = ⌈x/2⌉

part E. Determine whether each of these functions from R to R is a bijection. Find

its inverse function if it is a bijection.

1. f(x)=2x+4
2. f(x)=−x2 −2

3. f(x) = x2 + 2 x2 + 1

Part g Find f ◦g and g◦f, where f(x) = x2 +1 and g(x) = x+2 are functions from R to R.

Assume that the continuously compounded zeros rates for T=1, 2, 3, 4 (years) are 4.5%, 5.2%,
5.7%, 6.3% respectively. A market maker offers, through forward rate agreements (FRAs), the
following rates; 6.078% for the period between the 1st and the 2nd year, 6.900% for the period
between 2nd and the 3rd year and finally 8.300% for the period between the 3rd and the 4th year.
Evaluate if arbitrage opportunities exist. If such opportunities exist, design a strategy that can
deliver the maximum profit on a principal of £100 million. Assume annual compounding for the
FRA’s interest rate quotes.

Given are five observations for two variables, x and y. x i 1 2 3 4 5 y i 4 7 6 11 13 Round your answers to two decimal places. a. Using the following equation: Estimate the standard deviation of ŷ* when x = 3. b. Using the following expression: Develop a 95% confidence interval for the expected value of y when x = 3. to c. Using the following equation: Estimate the standard deviation of an individual value of y when x = 3. d. Using the following expression: Develop a 95% prediction interval for y when x = 3. If your answer is negative, enter minus (-) sign. to

Define each:

1. Quantitative easing

2. Forward guidance

3. Okun’s Law

4. NAIRU

Four classifications of corporate mergers are (1) horizontal, (2) vertical, (3) conglomerate and (4) congeneric. Explain its meaning in the context of a merger analysis in relation to the

(a) probability of a government intervention

(b) probability of operating synergistically