Questions
1.  In order to meet new Homeland Security guidelines, the Eagles install new facial recognition technology that...

1.  In order to meet new Homeland Security guidelines, the Eagles install new facial recognition technology that can instantly identify all patrons entering Lincoln Financial Field.  Installing the new security system costs the team $150 million.  Once installed, it is essentially costless to operate.  Use the appropriate economic framework to derive the impact of installing this system on ticket prices to Eagles games.

In: Finance

Dr. Victor Frankenstein has been developing a new operation table for advanced surgery. This new table...

Dr. Victor Frankenstein has been developing a new operation table for advanced surgery. This new table will be available to sell to the market in the near future. He expects the first annual cash flow from the technology to be $295,000, received four years from today. Subsequent annual cash flows will grow at 1.75% p.a. forever. If an appropriate discount rate is 10% p.a. compounded semi-annually, what is the value today of this new operation table?

Potential Answers:

$2,601,248.68

$2,589,806.38

$2,569,324.53

$2,698,356.87

$2,458,391.15

In: Finance

Forwards, Inc., recently issued new securities to finance a new TV show. The project cost $35...

Forwards, Inc., recently issued new securities to finance a new TV show. The project cost $35 million, and the company paid $2.2 million in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the debt issued had a flotation cost of 3 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio?

In: Finance

What major new reforms did the federal government adopt during the Second New Deal and how...

What major new reforms did the federal government adopt during the Second New Deal and how did they mark a change from the earlier policies?

In: Economics

Answer the following questions Al Safa Inc. plans to issue new bonds to finance its new...

Answer the following questions
Al Safa Inc. plans to issue new bonds to finance its new project. In its efforts to price the issue, Al-Safa has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for $1,091.96. If interest is paid annually for both bonds, what must the coupon rate of the new bonds be in order for the issue to sell at par?

Answer 1
Sbitany has an issue of $1,000 par value bonds with a 14 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The current value of each Sbitany's bond is

Answer 2
Sbitany has an issue of $1,000 par value bonds with a 14 percent coupon interest rate outstanding. The issue pays interest semiannually and has 10 years remaining to its maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. What is the value of these bonds?

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Abdul-Rahim Taysir

In: Accounting

“We really need to get this new material-handling equipment in operation just after the new year...

“We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank.” This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firm’s top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm’s main product lines are small kitchen appliances and power tools. Marcia Wilcox, Intercoastal’s General Manager of Marketing, has recently completed a sales forecast. She believes the company’s sales during the first quarter of 20x1 will increase by 10 percent each month over the previous month’s sales. Then Wilcox expects sales to remain constant for several months. Intercoastal’s projected balance sheet as of December 31, 20x0, is as follows:

Cash

$

35,000

Accounts receivable

252,000

Marketable securities

10,000

Inventory

231,000

Buildings and equipment (net of accumulated depreciation)

670,000

Total assets

$

1,198,000

Accounts payable

$

220,500

Bond interest payable

22,500

Property taxes payable

4,800

Bonds payable (15%; due in 20x6)

360,000

Common stock

400,000

Retained earnings

190,200

Total liabilities and stockholders’ equity

$

1,198,000

Jack Hanson, the assistant controller, is now preparing a monthly budget for the first quarter of 20x1. In the process, the following information has been accumulated:

  1. Projected sales for December of 20x0 are $600,000. Credit sales typically are 60 percent of total sales. Intercoastal’s credit experience indicates that 30 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month.
  2. Intercoastal’s cost of goods sold generally runs at 70 percent of sales. Inventory is purchased on account, and 50 percent of each month’s purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next month’s projected cost of goods sold.
  3. Hanson has estimated that Intercoastal’s other monthly expenses will be as follows:

Sales salaries

$

45,000

Advertising and promotion

25,000

Administrative salaries

45,000

Depreciation

15,000

Interest on bonds

4,500

Property taxes

1,200

In addition, sales commissions run at the rate of 2 percent of sales.

  1. Intercoastal’s president, Davies-Lowry, has indicated that the firm should invest $115,000 in an automated inventory-handling system to control the movement of inventory in the firm’s warehouse just after the new year begins. These equipment purchases will be financed primarily from the firm’s cash and marketable securities. However, Davies-Lowry believes that Intercoastal needs to keep a minimum cash balance of $25,000. If necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank. The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if possible.
  2. Intercoastal’s board of directors has indicated an intention to declare and pay dividends of $50,000 on the last day of each quarter.
  3. The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal’s bonds is paid semiannually on January 31 and July 31 for the preceding six-month period.
  4. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period.

Prepare Intercoastal Electronics Company’s master budget for the first quarter of 20x1 by completing the following schedules and statements:

1A) Sales budget:

1B) Cash receipts budget:

1C) Purchases budget:

1D) Cash disbursements budget:

1E) Complete the first three lines of the summary cash budget. Then do the analysis of short-term financing needs in requirement (6). Then finish requirement (5).

1F) Calculation of required short-term borrowing.

1G) Prepare Intercoastal Electronics’ budgeted income statement for the first quarter of 20x1. (Ignore income taxes.)

1H) Prepare Intercoastal Electronics’ budgeted statement of retained earnings for the first quarter of 20x1.

1I) Prepare Intercoastal Electronics’ budgeted balance sheet as of March 31, 20x1. (Hint: On March 31, 20x1, Bond Interest Payable is $9,000 and Property Taxes Payable is $1,200.)

In: Accounting

what are the probabilities that contacting 25 potential new customers would result in at least 5 new customers?

 

If a cell phone company conducted a telemarketing campaign to generate new clients, and the probability of successfully gaining a new customer was 0.05, what are the probabilities that contacting 25 potential new customers would result in at least 5 new customers?

In: Statistics and Probability

A Health Club chain offers three physical fitness programs in two states, New York and New...

A Health Club chain offers three physical fitness programs in two states, New York and New Jersey. A researcher has decided to test the club’s advertised claims of the benefits of these programs. The table below, shows the results (weight loss in pounds) of the researcher’s findings.

States SQ PQ TQ
New York 19 8 21
18 10 31
25 10 26
20 18 28
17 7 14
21 16 24
New Jersey 15 23 31
28 32 31
17 26 26
14 16 20
17 27 14
13 18 9

a) State the hypotheses for this experiment.

b) Using Excel, run the appropriate Data Analysis (Attach your Excel results)

c) Is there any significant interaction effect?

If there is any interaction effect? ___ Yes ___No. Explain why or, why: not.

d) Make your decision(s): (

e) Draw your conclusion(s) (in the context of the problem):

In: Statistics and Probability

1. UCI is letting students choose a new UCInetID username. Under the new system, each username...

1. UCI is letting students choose a new UCInetID username. Under the new system, each username must

be exactly 8 characters long; available characters are lowercase letters (a-z, 26 possible choices) and

numerical digits (0-9, 10 possible choices).

UCI would like the first character and the last three characters to be numerical digits, and the middle

four characters to be letters.

(a) How many different UCInetID usernames are possible?

(b) How many different UCInetID usernames are possible if none of the numerical digits can be used

more than once?

(c) How many different UCInetID usernames are possible if no character (letters or numbers) can be

used more than once?

(d) You are trying to log in to Canvas, but you have forgotten your UCInetID username over the

winter break. You don’t remember the whole username, but you do remember that the first three

characters are ”3li.”

Using this information you take a guess. What is the probability that you guess correctly? Note:

the only restrictions are those from the original problem, not any previous sub-problems.

In: Statistics and Probability

Mimi has seven new summer outfits. She plans to pack three of the new summer outfits...

Mimi has seven new summer outfits. She plans to pack three of the new summer outfits in her trip to Tokyo.

(a) How many different ways can the three summer outfits be selected?

(b) Please describe the method used and the reason why it is appropriate for answering the question. Just the answer, without the description and reason, will receive no credit.

In: Statistics and Probability