What is the present value of the following annuity? $704 every quarter year at the end of the quarter for the next 5 years, discounted back to the present at 16.09 percent per year, compounded quarterly?
In: Finance
The following data represent the number of days absent per year in a population of six employees in a small company: 1 3 6 7 9 10
a. Compute the population mean.
b. Compute the population standard deviation.
c. Assuming that you sample without replacement, select all possible samples of size n=2 and construct the sampling distribution of the mean.
d. Compute the mean of all the sample means. How does the mean of the sample means and the population mean compare?
e. Compute the standard deviation of all the sample means. How does the standard deviation of the sample means and the population standard deviation compare?
f. Repeat parts (c) – (e) for all possible samples of size n=3. How do the results compare with those of sample size n=2? Comment on what happened as the sample size increased (from 2 to 3).
In: Statistics and Probability
In: Finance
A stock is expected to pay the following dividends: $1 in 1 year, $1.5 in 2 years, and $1.8 in 3 years, followed by growth in the dividend of 7% per year forever after that point. The stock's required return is 14%. The stock's current price (Price at year 0) should be $____________.
A stock is expected to pay the following dividends: $1.3 four years from now, $1.5 five years from now, and $1.8 six years from now, followed by growth in the dividend of 5% per year forever after that point. There will be no dividends prior to year 4. The stock's required return is 13%. The stock's current price (Price at year 0) should be $____________.
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.4. It is expected to pay a dividend of $2.8 exactly five years from now. The dividend is expected to grow at a rate of 8% per year forever after that point. The required return on the stock is 14%. The stock's estimated price per share exactly TWO years from now, P2 , should be $______.
If you could do them all, you would be a life saver! Thank you.
In: Finance
Suppose the following weights, in pounds, of 28 one-year-old Labradors are collected: 65.4 70.2 60.5 53.2 72.4 62.8 66.9 65.7 58.7 80.3 70.5 72.0 68.4 92.5 60.8 69.8 72. 7 68.5 78.9 82. 7 56.3 67.2 62.6 48.5 80.4 88.0 78.5 76.0
1. To the nearest thousandth, determine the mean of this sample, and to the nearest hundred-thousandth, determine the deviation
2. Determine and properly label the five-number summary of the data, and use it to find the IQR
3. Calculate the interval of values that would be considered to NOT be outliers, and then state the data values, if any, that ARE outliers.
4. Based on the sample mean and deviation, calculate the z-scores of the min, the max, and the two quartiles. Round to 2 decimal places
In: Statistics and Probability
Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned$3.58per share and paid cash dividends of$1.88per share(D0=$ 1.88$).Grips' earnings and dividends are expected to grow at 40%per year for the next 3 years, after which they are expected to grow 6% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of15%on investments with risk characteristics similar to those of Grips?
In: Finance
A firm has debt due next year and the amount is 100. It has cash of 10. It has only 1 project to invest. If the project succeeds, it will generate 1000 cash flow next year and 0, otherwise. Probability of success is 5%. Initial cost of project is 10. If the firm does not invest in the project, it will put 10 cash into risk-free asset. Risk-free return is 2%. Discount rate for the project cash flow is 10%.
In: Accounting
On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a miscellaneous expense for supplies to complete a project for a VIP customer today. You notice the invoice looks a little different from other invoices that are usually processed. You know that by preparing the closing entries tomorrow, the miscellaneous expense will be set to zero for the beginning of the year. Should you write this check today and record the expense or write the check tomorrow? How would the company be affected if the check is written and the invoice ends up being erroneous?
In: Accounting
The ABC Corporation is in its first year of operations, and has the following adjusted trial balance, as of December 31, 2018.
ABC Corporation is a t-shirt manufacturer that leases a multi-use space for all of its needs.
|
Accounts Payable |
$ 1,200 |
|
Accounts Receivable |
$ 3,500 |
|
Accumulated Depreciation - Machinery and Equipment |
$ (1,625) |
|
Accumulated Depreciation - Office Equipment |
$ (1,400) |
|
Cash |
$ 10,400 |
|
Common Stock |
$ 10,000 |
|
Cost of Goods Sold |
$ 60,000 |
|
Depreciation Expense |
$ 3,025 |
|
Interest Expense |
$ 640 |
|
Interest Payable |
$ 640 |
|
Inventory |
$ 7,500 |
|
Machinery and Equipment |
$ 13,000 |
|
Marketing Expense |
$ 3,000 |
|
Notes Payable |
$ 8,000 |
|
Office Equipment |
$ 4,200 |
|
Retained Earnings |
$ - |
|
Salaries Expense |
$ 22,000 |
|
Salaries Payable |
$ 600 |
|
Sales Revenue |
$ 125,000 |
|
Supplies |
$ 1,000 |
|
Supplies Expense |
$ 8,200 |
|
Utilities Expense |
$ 12,000 |
Prepare a classified balance sheet as of December 31, 2019 for ABC Corporation.
Comment on the financial results for this company.
|
ABC Corporation |
|
|
Balance Sheet |
|
|
As of December 31, 2018 |
|
|
Assets |
|
|
Current Assets: |
|
|
Total Current assets |
|
|
Long-Term Assets: |
|
|
Total Assets |
|
|
Liabilities and Stockholders Equity |
|
|
Current Liabilities: |
|
|
Long-Term Liabilities: |
|
|
Total Liabilities: |
|
|
Stockholder's Equity: |
|
|
Total Liabilities and Stockholder's Equity |
|
In: Accounting
The following information relates to ABC Ltd., for the year ended 31st December, 2019.
Sales……………………………………………………………….. Rs.2,000,000.
EBID ………………………………………………………………. 40% of sales.
Ordinary Shares capital of par value Rs.10/each……………… Rs.800,000.
8% Preference shares Capital of par value Rs.100/ each………. Rs.500,000.
10% Bonds payable of par value Rs.1000/each…………………. Rs.400,000.
Reserves and surplus………………………………………………Rs.250,000.
Current liabilities…………………………………………………..Rs.250,000.
Tax rate is 30%.
Market price of share is Rs.20 each.
Dividend payout ratio is 60%.
Required; Compute and comments on each of the following ratios
a)Earning per share. b) Dividend per share.
c)Price earning ration. d) Earning yield ratio.
e)Dividend yield ratio. f) Return on assets.
g)Return on Equity. h) Capital/Assets turn over.
i) Equity multiplier. J) Debt ratio
In: Finance