Questions
What is the present value of the following annuity? $704 every quarter year at the end...

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...

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

A firm is evaluating a project that costs RM450m, has a five-year life and has a...

  1. A firm is evaluating a project that costs RM450m, has a five-year life and has a salvage value of RM3m. Assume that depreciation is straight line with zero residual value over the life of the project. Working capital of RM35m is needed initially and the same will be released in the final year. Sales are projected at 555,000 units per year with a selling price of RM505 per unit, variable cost RM315 per unit, and fixed costs are RM1,325,000 per year. The tax rate is 25% and the required rate of return is 12.5% on this project.
  1. Calculate the grand cash flow and NPV. Interpret your findings
  1. Re-compute NPV if the sales increase by 225000 units on an average.

In: Finance

A stock is expected to pay the following dividends: $1 in 1 year, $1.5 in 2...

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:

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...

  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...

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%.

  1. Suppose manager maximizes equity holder value. Would he invest in this project? (4pt)
  1. What is PV of debt if manager decides to invest in the project? What is PV of debt if manager decides NOT to invest in the project but put 10 cash into risk-free asset? (3pt)
  1. Would debtholders like the firm to invest in the project? (3pt)
  1. What is the minimum success probability above which debtholders like the firm to invest in the project? (3pt)

In: Accounting

On the last day of the fiscal year, a co-worker asks you to cut a check...

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...

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.

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