A generator at a utility company produces 100 A of current at 4.0 x 103 V. The voltage is stepped up to 2.4 x 105 V by a transformer before being sent on a high voltage line across a rural area to a city. Assume the effective resistance of the line is 30.0 Ω and the transformers are ideal.

a. Determine the percentage of power lost in the transmission line.

b. What percentage would be lost if the voltage would not have been stepped up?

c. How many kW-hr of energy is lost each day if the voltage would not have been stepped up?

d. Calculate the cost of this energy loss if the price of electricity is $.11/kW-hr.

Design the logic in pseudocode for Bugz App software company that sells a software package
as follows.
1. The retail price of the package is $99
2. Quantity discounts are given on purchases of 10 or more units as follows The program
must allow the user to enter the customer’s name and number of units purchased, and
output the original cost of the units purchased, the percentage discount given, the dollar
amount of the discount given, and the final cost after discount.
1. If the customer purchases up to 19 units, they receive a discount of 20%
2. 20 to 49 units – discount of 30%
3. 50 to 99 units – discount of 40%
4. 100 or more units – discount of 50%

AHH! Corporation has three product lines with limited demand. The firm has NO fixed costs. Below are some facts about the firm. Oh! No! Way! Monthly demand (units) 100 120 140 Machine hours per unit 3 6 8 Price per unit $70 $75 $80 Variable costs per unit $60 $62 $60 The firm can only supply 1,800 hours of machine time per month between the three product lines. What is the firm's maximum monthly profit? Selected Answer: c. $4,300 Answers: a. $5,560 b. $4,510 c. $4,300 d. $4,650

Test to determine if the average cell phone bill differs when compared to the same programs and same areas. A random sample of cell phone bills (in dollars) from four companies is reported below a = .01

Verizon 100 125 105 100 110

Sprint 100 130 90 120 90

At and T 90 90 90 100 120

T Mobile 100 100 110 90 80

Using the following variables, calculate an organization's cost of debt on a $100,000 bond.

• R_f: 2%
• Credit-risk rate: 6%
• t: 20%

• a.)$7,840
• b.)$1,600
• c.)$6,400
• d.)$8,000

• Calculate a company's total leverage given the following information:

• Net income = $35,000
• Revenue = $70,000
• Variable costs = $15,000
• a.)Cannot calculate without ROE data
• b.)1.57
• c.)2.33
• d.)Cannot calculate without knowing the degree of operating leverage

Eadie owns 300 shares of stock in Company A that were valued at $2/share.

After Company A announces a 3-to-1 reverse stock split, Eadie calculates that she will own __________.

• a.)900 shares valued at $0.67/share
• b.)900 shares valued at $2/share
• c.)100 shares valued at $2/share
• d.)100 shares valued at $6/share

What does the residual dividend model assume about the relationship between dividends and share value?

• a.)It assumes that share values fall if no dividends are distributed.
• b.)It assumes there is no appreciable relationship.
• c.)It assumes that share value rises when the target payout ratio is met.
• d.)It assumes that share value rises when dividends are consistent.

Why might investors prefer stock dividends over cash dividends?

• a.)If they are seeking flexibility
• b.)If they are seeking a stable share price
• c.)If they are seeking a predictable income stream
• d.)If they are seeking short-term liquidity

Oran just noticed that the price of a stock in his portfolio went up after the company announced a larger than usual dividend.

The market's response to the company's decision is attributable to __________.

• a.)information asymmetry
• b.)capital gains
• c.)the dividend effect
• d.)dividend irrelevance

Hashem Hats Inc. needs to develop an estimate of its cost of capital. Assume that you are an assistant to the financial vice president. He has provided you with the following information:

The firm’s marginal tax rate is 40%. The current price of the firm’s 12 percent coupon, semiannual payment bonds with 15 years remaining to maturity is $1,153.72. The current price of the firm’s 10% $100 par value quarterly dividend perpetual preferred stock is $110.00. TSI’s common stock is currently selling at $50 per share. Its last dividend was 4.19, and dividends are expected to grow at a constant rate of 5 % forever. The firms’s beta is 1.2, the yield on T-bills is 7 percent, and the market risk premium is estimated to be 6%. For the bond yield plus risk premium approach, the firm uses a 4% risk premium. The firm estimates that if it issues new common stock, the flotation cost will be 15 percent. TSI’s capital structure is 30 percent debt, 10 percent preferred stock, and 60 percent common equity. The firm’s component cost of equity is 14% The firm has $1 million in its retained earnings account. Ignore all extraneous information in the above passage. Please provide the following, showing all work:

Calculate the firm’s component cost of debt and component cost of preferred stock. Then, asssume that Hashem Inc. is considering a single project this capital budgeting period, labeled Project C. This 3 year project has an initial cost of $100 dollars and pays three annual cash flows of $50 at the end of each year. Find the NPV of Project C. Show all work.

Jordan is a construction contract company involved in building commercial properties. Its current policy for determining the percentage of completion of its contracts is based on the proportion of cost incurred to date compared to the total expected cost of the contract.

One of Jordan’s contracts has an agreed price of $250 million and estimated total costs of $200 million.

The cumulative progress of this contract is:

Year ended:                               30 September 2011            30 September 2012

                                                          $million                                 $million

Costs incurred                                      80                                         145

Work certified and billed                     75                                         160

Billings received                                  70                                         150

Based on the above, Jordan prepared and published its financial statements for the year ended 30 September 2011. Relevant extracts are:

Statement of Profit and Loss

                                                         $million

Revenue (balance)                              100

Cost of sales                                       (80)

                                                           ––––

Profit (50 x 80/200)                            20

                                                           ––––

Statement of financial position

                                                          $million

Current assets

Amounts due from customers

Contract costs to date                           80

Profit recognised                                  20

                                                             ––––

                                                              100

Progress billings                                  (75)

                                                              ––––

                                                                25

                                                              ––––

Contract receivables      (75 – 70)            5

Jordan has received some adverse publicity in the financial press for taking its profit too early in the contract process, leading to disappointing profits in the later stages of contracts. Most of Jordan’s competitors take profit based on the percentage of completion as determined by the work certified compared to the contract price.

Required:

1. Assuming Jordan changes its method of determining the percentage of completion of contracts to that used by its competitors, and that this would represent a change in an accounting estimate, calculate equivalent extracts to the above for the year ended 30 September 2012

CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows:

The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $327 each and have a variable cost of $134 each.

Required:

a. Is there a bottleneck at CompDesk in Building 1 or Building 2?

b. CompDesk’s production supervisors state they could increase building 1’s capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $34 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $21,800 per month.

b-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.)

b-2. Should CompDesk produce desks on the weekend?

c. Independent of the situation in requirement (b), CompDesk could add additional equipment and workers to building 1, which would increase its capacity by 100 desks per month. This would not affect the sales price or variable cost per unit but would increase fixed costs by $15,900 per month.

c-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.)

c-2. Should CompDesk add the additional equipment and workers to building 1?

IN C LANGUAGE

You decide you want to build a skate park in your backyard, so you need to buy a lot of concrete. The good news is, you can get a discount when you buy in bulk. The price of concrete for different grades of concrete per cubic yard is as follows:

• when grade is either "low" or "cheap"
  • $100 (per cubic yard) for less than 200 cubic yards
  • $95 for between 200 and 400 (including 200 and 400) cubic yards
  • $90 for more than 400 cubic yards
• when grade is either "high" or "expensive"
  • $150 for less than 250 cubic yards
  • $135 for 250 or more cubic yards

Write a program that calculates the price of an order of concrete when given the grade and quantity.

Notes

• You can assume valid input.
• The grader is checking if your output ends with the integer dollar amount (no cents or punctuation).

Examples

What grade of concrete (low/cheap, high/expensive)?
low
How many cubic yards of concrete?
75
The cost is $7500

The answer to the example above is calculated from 75 * $100 (low grade, less than 200 cubic yards) = $7500

What grade of concrete (low/cheap, high/expensive)?
cheap
How many cubic yards of concrete?
75
The cost is $7500

What grade of concrete (low/cheap, high/expensive)?
high
How many cubic yards of concrete?
75
The cost is $11250

What grade of concrete (low/cheap, high/expensive)?
expensive
How many cubic yards of concrete?
75
The cost is $11250

The data in tab #2 pertain to the years of experience of project managers and the numbers of successes and failures they have had on major projects. Use the data set given in tab #2 in the attached Excel workbook and logistic regression to find the following:

The probability of success given 10 years of experience is: .

The probability of failure given 18 years of experience is: .