Questions
An 80 kg man stands in a very strong wind moving at 15 m/s at torso...

An 80 kg man stands in a very strong wind moving at 15 m/s at torso height. As you know, he will need to lean in to the wind, and we can model the situation to see why. Assume that the man has a mass of 80 kg, with a center of gravity 1.0 m above the ground. The action of the wind on his torso, which we approximate as a cylinder 50 cm wide and 90 cm long centered 1.2 m above the ground, produces a force that tries to tip him over backward. To keep from falling over, he must lean forward.

Part A

What is the magnitude of the torque provided by the wind force? Take the pivot point at his feet. Assume that he is standing vertically. Assume that the air is at standard temperature and pressure.

Express your answer with the appropriate units.

For Part A. I tried 72.9 degrees, 85.02 degrees and 234.44 (I'm desperate)

Part B

At what angle to the vertical must the man lean to provide a gravitational torque that is equal to this torque due to the wind force?

Express your answer in degrees.

For part B. I already tried 5.25 degrees, 5.5 degrees and 6.5 degrees

I need help please!!!!

In: Physics

25 Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the...

25

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product F9 400 2.0 800
Product U4 200 1.0 200
Total direct labor-hours 1,000

The direct labor rate is $24.40 per DLH. The direct materials cost per unit is $258 for Product F9 and $215 for Product U4.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product F9 Product U4 Total
Labor-related DLHs $ 34,600 800 200 1,000
Production orders orders 54,940 200 200 400
Order size MHs 111,950 3,400 2,900 6,300
$ 201,490

The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

In: Accounting

Weston Industries has a debt-equity ratio of 1.4. Its WACC is 8.4 percent, and its cost...

Weston Industries has a debt-equity ratio of 1.4. Its WACC is 8.4 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 21 percent.

  

a.

What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c-2. What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

In: Finance

You are trying to evaluate a private firm’s potential as a good investment opportunity. Your mentor...

You are trying to evaluate a private firm’s potential as a good investment opportunity. Your mentor at the investment bank you interned during the summer told you to collect information on comparable firms, which will help you find the WACC of the private firm. The private firm has ND/E ratio of 2. The risk free rate is 2%. Market risk premium is 5%. Cost of debt for the private firm is assumed is 6%. The tax rate is 50%. The following table lists the information you have gathered:

Firm Beta Equity Equity (Million) Debt (Million) Cash (Million)
A 1.3 20 11 6
B 1.1 15 8 2
C 0.9 10 6 3
D 0.8 5 7 2

What is the net debt for firm A?

Q2. Calculate the asset beta for firm D.

Q3. What is the average asset beta you should use combining all the comparable firms?

Q4. What is the equity beta for the private firm?

Q5. What is the cost of equity for the private firm? 0.0/1.0 point (graded) Input the cost of equity for the private firm. (use the result from problem 3) ______ %(keep two decimal points)

In: Finance

Ginny is endowed with $8million and is deciding whether to invest in a restaurant. Assume perfect...

Ginny is endowed with $8million and is deciding whether to invest in a restaurant. Assume perfect capital markets with an interest rate of 6%.

Investment Option: 1, 2, 3, 4

Investment (millions): 2, 3, 4, 5

End of Year 1 Cash Flows (millions): 1.8, 4.3, 5.4, 5.2

End of Year 2 Cash Flows (millions): 1.8, 1.0, 1.4, 1.6

(i) List 4 perfect capital market assumptions.

(ii) Which investment option should Ginny choose? Why?

(iii) Which investment option can be eliminated from consideration? Why?

Ginny is actively pursuing another business venture as a ticket scalper. She estimates that for a $2 million investment in inventory she can resell her tickets for $6 million over the next two years (cash flows realized in exactly two years). Assume the same 6% interest rate.

(iv) What is the NPV of the Ticket Brokering venture?

(v) What is the new value of Ginny's Corporation?

(vi) Suppose Ginny does not have the $2million to start the new venture. Instead, she wants to raise equity capital by issuing 100,000 shares. What price will new investors be willing to pay?

In: Finance

Three resistors with resistances R1, R2, R3 are connected in parallel across a battery with voltage...

Three resistors with resistances R1, R2, R3 are connected in parallel across a battery with voltage V. By Ohm’s law, the current (amps) is

I = V* [ (1/R1) + (1/R2) + (1/R3) ]

Assume that R1, R2, R3, and V are independent random variables

where R1 ~ Normal (m = 10 ohms, s = 1.5 ohm)

            R2 ~ Normal (m = 15 ohms, s = 1.5 ohm)

            R3 ~ Normal (m =20 ohms, s = 1.0 ohms)

            V ~ Normal (m = 120 volts, s = 2.0 volts

(a) Use Monte Carlo Simulation (10,000 random draws from each input random variable) to estimate the mean and standard deviation of the output variable current. (b) Assess whether the output variable current is normally distributed. (c) Assess whether the inverse of current squared (1/ I2 ) is normally distributed. (d) Estimate the probability that the current is less than 25 amps assuming that the inverse of current squared is normally distributed. (e) Compare your answer to (d) with your simulation results – how many of the 10,000 random results for current are below 25 amps via the Stat > Tables > Tally command?

In: Math

Ginny is endowed with $ 8million and is deciding whether to invest in a restaurant. Assume...

Ginny is endowed with $ 8million and is deciding whether to invest in a restaurant. Assume perfect capital markets with an interest rate of 6%.

Investment Option

Investment (millions)

End of Year 1 CFs (millions)

End of Year 2 CFs (millions)

1

2

1.8

1.8

2

3

4.3

1.0

3

4

5.4

1.4

4

5

5.2

1.6

  1. List 4 perfect capital market assumptions.

1.   ______________________________      2.   ______________________________

3.   ______________________________ 4.   _______________________________

  1. Which investment option should Ginny choose?

  1. Which investment option can be eliminated from consideration? Why?

Ginny is actively pursuing another business venture as a ticket scalper. She estimates that for a $2 million investment in inventory she can resell her tickets for $6 million over the next two years (cash flows realized in exactly two years). Assume the same 6% interest rate.

  1. What is the NPV of the Ticket Brokering venture?

  1. What is the new value of Ginny’s Corporation?

  1. Suppose Ginny does not have the $2 million to start the new venture. Instead, she wants to raise equity capital by issuing 100,000 shares. What price will new investors be willing to pay?

In: Finance

Question 5 (25 marks / Risk, Return and CAPM) (Each of the following parts is independent.)...

Question 5 (25 marks / Risk, Return and CAPM)
(Each of the following parts is independent.)
(a) According to the Capital Asset Pricing theory, what return would be required by an investor whose portfolio is made up of 40% of the market portfolio (m) and 60% of Treasury bills (i.e. risk-free asset)? Assume the risk-free rate is 3% and the market risk premium is 7%?  

(b) You are considering investing in the following two stocks. The risk-free rate is 7 percent and the market risk premium is 8 percent.

Stock ,Price Today , Expected Price in 1 year, Expected Dividend in 1 year, Beta
X $20 $22 $2.00 1.0
Y $30 $32 $1.78 0.9

i) Compute the expected and required return (using CAPM) on each stock.   
ii) Which asset is worth investing? Support your answer with calculations.     

(c) Which pair of stocks used to form a 2-asset portfolio would have the greatest diversification effect for the portfolio? Briefly explain.
                   
                            Correlation
Stocks A & B            -0.66
Stocks A & C            -0.42
Stocks A & D                0
Stocks A & E               0.75
         
(d) Explain the terms systematic risk and unsystematic risk and their importance in determining investment return.          

In: Finance

(Each of the following parts is independent.) According to the Capital Asset Pricing theory, what return...

(Each of the following parts is independent.)

  1. According to the Capital Asset Pricing theory, what return would be required by an investor whose portfolio is made up of 40% of the market portfolio (m) and 60% of Treasury bills (i.e. risk-free asset)?  Assume the risk-free rate is 3% and the market risk premium is 7%?

  1. You are considering investing in the following two stocks. The risk-free rate is 7 percent and the market risk premium is 8 percent.

Stock

Price Today

Expected Price

in 1 year

Expected Dividend

in 1 year

Beta

X

$20

$22

$2.00

1.0

Y

$30

$32

$1.78

0.9

  1. Compute the expected and required return (using CAPM) on each stock.
  2. Which asset is worth investing? Support your answer with calculations.

  1. Which pair of stocks used to form a 2-asset portfolio would have the greatest diversification effect for the portfolio? Briefly explain.

Correlation

Stocks A & B

-0.66

Stocks A & C

-0.42

Stocks A & D

0

Stocks A & E

0.75

                                                                                            

(d)   Explain the terms systematic risk and unsystematic risk and their importance in determining investment return.

Please provide stepping for all if possible, much appreciated.

In: Finance

Question 5 (25 marks / Risk, Return and CAPM) (Each of the following parts is independent.)...

Question 5 (25 marks / Risk, Return and CAPM) (Each of the following parts is independent.) (a) According to the Capital Asset Pricing theory, what return would be required by an investor whose portfolio is made up of 40% of the market portfolio (m) and 60% of Treasury bills (i.e. risk-free asset)? Assume the risk-free rate is 3% and the market risk premium is 7%? ​​​​ (b) You are considering investing in the following two stocks. The risk-free rate is 7 percent and the market risk premium is 8 percent. Stock Price Today Expected Price in 1 year Expected Dividend in 1 year Beta X $20 $22 $2.00 1.0 Y $30 $32 $1.78 0.9 i) Compute the expected and required return (using CAPM) on each stock. ii) Which asset is worth investing? Support your answer with calculations. (c) Which pair of stocks used to form a 2-asset portfolio would have the greatest diversification effect for the portfolio? Briefly explain. Correlation Stocks A & B -0.66 Stocks A & C -0.42 Stocks A & D 0 Stocks A & E 0.75 ​​​​​​​​​​​ (d)​Explain the terms systematic risk and unsystematic risk and their importance in determining ​investment return.​​​​​​

In: Finance