Part A:

You buy 500 shares of stock at a price of $94 and an initial margin of 50 percent. If the maintenance margin is 40 percent, at what price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Margin Call Price:

PART B

You purchase 650 shares of 2nd Chance Co. stock on margin at a price of $45. Your broker requires you to deposit $17,500.

a. Suppose you sell the stock at a price of $50. What is your return? What would your return have been had you purchased the stock without margin? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

With Margin: %

Without Margin: %

b. What is your return if the stock price is $44 when you sell the stock? What would your return have been had you purchased the stock without margin? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

With Margin: %

Without Margin: %

Studies have shown that the frequency with which shoppers browse Internet retailers is related to the frequency with which they actually purchase products and/or services online. The following data show respondents age and answer to the question “How many minutes do you browse online retailers per week?”

1. Use Data > Data Analysis > Correlation to compute the correlation check the Labels checkbox. Show work in excel.

2. Use the excel function =CORREL to compute the correlation. If answer for #1 and 2 do not agree, there is an error. Show work in excel.

1. A random sample of eight auto drivers insured with a company and having similar auto insurance policies was selected. The following table lists their driving experience (in years) and the monthly auto insurance premium (in dollars).

a) Find the regression of Monthly Auto Insurance Premium on Driving Experience and write down the least squares regression model.

b) Give a brief interpretation of the value of the slope calculated in part a.

c) Is the slope significant? Explain.

d) Predict the Monthly Auto Insurance Premium for a driver with 10 years of driving experience.

e) Calculate the correlation coefficient and interpret its meaning.

f) Is the linear correlation coefficient between both variables significant? Explain.

g) Calculate the coefficient of determination and explain its meaning.

h) Draw a scatter diagram of the two variables and show the regression model obtained in part a.

23. Chastain company assigned $115,000 of direct labor and $25,000 of indirect labor to production. the journal entry to record this transaction is??

42.

Robot Toy Company manufactures two products, Techman and Mechman. Robot's estimated overhead costs for next year are

Machine set up cost pool: $200,000

Machining cost pool: $450,000

Inspecting cost pool: $150,000

Estimated use of cost drivers for next year are

inspections

Total: 1500 inspections

Techman: 800 inspections

Mechman: 700 inspections

what is the activity based overhead rate for inspections?

A. $214 per inspection

B. $188 per inspection

C. $100 per inspection

D. $50 per inspection

43. which element of throughput time adds value to the product?

A. waiting time

B. moving time

C. Processing time

D. inspection time

44. Which of the following is not a product level activity?/

A. product design

B. product engineering changes

C. property taxes

Gillette claims that their double-edge shaver is better than the leading brand of single-edge shavers (Lady Bic). In a recent study, 26 women rated the Gillette and the Lady Bic shavers on smoothness, closeness and safety. One group of women were used and each woman recorded two scores. The mean difference of those scores were tested with the following results.

                                                          Critical Value…………… t = 1.645

Test statistic ..................... t = 1.978

P-value..............................   =   . 031

Significance level ……........... =   .05

Use the above information to answer questions 1-10.

_____ 1) The study design is

           a) pre-test/posttest        b) one-sample dependent mean     c) two-sample mean

_____ 2) What numbers are being compared in the test?

                  a) average difference and zero    b) means     c) standard deviations    d) critical values

_____ 3) Which number from the computer output is compared to the significance level     

                  to check if the null hypothesis should be rejected?

                  a) degrees of freedom    b)   test statistic      c) P-value         d) critical value

_____ 4)   What type of conclusion error could be made using the results of this study?

                 a) type II                b)   none            c) type III                            d) type I

_____ 5) Was a right, left, or two-tailed test run to support Gillett’s claim?

                 a) left                     b) right               c) two-tailed                     d) not enough information

_____ 6) Would there be a statistically significant difference between the means if the   

                significance level were set at .01?

                a) yes                       b) no               c) if it was a one-tail test     d) not enough info

_____ 7) List the p-value if a two-tailed test was run.

                a) .031                     b) .95                 c) .062                              d) .0001

_____ 8) Which number from the output shows the predetermined probability of a type-I error.

                a) significance level        b)   test statistic        c) critical value    d) P-value

_____ 9) Have you proven that one razor is better that the other?

                a) no                                  b) yes                      c) not enough info    d) depends on p-value

_____10) What unit of measure does the 1.978 represent? ____________________________

On 1 January 2019, Colson Company had 200,000 ordinary shares outstanding with par value of $l each that originally issued at $18 per share. On 1 April 2019, 20,000 ordinary shares were issued at $25 per share and on 1 May, the company issued 5% bonus issue as stock dividend for both ordinary shares and preference shares.

During the year, 30,000 treasury shares were repurchased from the open market at $35 on 1 September 2019. On 1 March 2019, the company issued 200,000 9%, cumulative preference shares of par $1 per share.

Colson also issued $2,000,000 of 8% convertible bonds at face value during 2018 - each $1,000 bond is convertible into 50 ordinary shares. Top executives were granted 30,000 options to buy ordinary shares at the exercise price of $40 if the net income of the company can achieve over $450,000. The beginning and ending market price of the ordinary shares was $38 and $62 respectively during the year 2019.

Net income for the company was $500,000 in 2019, and the relevant corporate tax rate was 40%. At the financial year-end date of 2019, the company declared and paid $5 cash dividends to all ordinary shareholders.

Required: (Answers should be rounded to two decimal places)

(a) Calculate the basic earnings per share for 2019.

(b) Calculate the diluted earnings per share for 2019.

The total cost of the wagons before any discount was taken; the net cost after the trade discount.

The amount of remittance to the nearest cent on May 18.

The amount of remittance to the nearest cent on May 31.

The total cost and individual cost to the nearest cent per wagon after all discounts.

The amount saved by making the two payments.

The breakeven point to the nearest cent for all wagons.

The regular list price per wagon rounded to the nearest cent.

The reduced list price per wagon rounded to the nearest cent.

The total revenue received from the sale of all wagons.

The total amount of operating profit or loss and the percent of cost this amount was (to the nearest tenth percent.

In the table below we present the production possibility for two countries, A and B, who can both produce milk and soda. The number in the cell refers to the amount they can produce if they dedicated 100 per cent of their time to produce that good. So, country A can produce 40 litres of milk at most, and B can produce 20 litres of it at most.

Table – Production Possibility – 100 percent time on each product

1. What is absolute advantage? Who has absolute advantage in milk and in soda?
2. What is opportunity cost? State the opportunity cost of each country for milk and soda.
3. What is comparative advantage? Who has comparative advantage in milk and in soda?
4. Can a country have comparative advantage in both products? Explain why.
5. Presently without specialization, each of them spends 50 per cent of their time producing milk and soda. Show how much each country is producing in a table. Suppose after specialization Country A spends 70 per cent of the time producing milk, while Country B spends 75 per cent of the time producing soda. Will they be better off by trading? What is the minimum price that Country B will accept for soda? What is the maximum price that Country A will pay for Soda? [Hint: the prices are not in Dollar terms but in terms of the other good]

Gaming Corp. produces and sells the “Game-Box 720”, a digital gaming device. The market selling price is $190 per unit.The firm’s regular costs are as follows:

Fixed production costs $1,000

Variable production costs per unit $50

Variable marketing costs per unit sold in the normal market $10

The firm’s production facilities provide it with the capacity to produce a total of 15 units of product per period. Given current market conditions, the firm expects to produce and sell 10 units.As a result of a special order received and accepted last year, Gaming Corp. leased additional production facilities which are available for use this year. For this year, the rent for these leased facilities is $300 and they will provide the company with the capacity to produce an additional 5 units.

1)At the expected level of output, what is the firm’s average production cost per unit?

2)At the expected level of output, what will the firm’s total profit be?

3)During the year, the firm received a special order from Cassar Inc. for 5 units at a price of $130 per unit. Cassar wants to give the devices away next period as a part of an advertising promotion. Should the firm accept or reject the offer?(Provide the calculations that support/justify your answer.)Should the firm accept or reject the offer?

4) Before reaching a decision regarding the Cassar order described above, Gaming Corp. received a second special order from Baiman Corp. Baiman offered to purchase 8 units at a price of$129 per unit. In addition, Gaming Corp. was approached by the company that leased it the additional factory space last year. It offered to cancel Gaming Corp.’s lease for a cancellation fee of $80. What is the maximum profit that Gaming Corp. can achieve?

Brian plays golf regularly and would like to test the hypothesis that the number of golf balls that he loses during a round follows the Poisson distribution with an average of 2.0 balls per round. To test this hypothesis, he has collected the following lost ball data from a random sample of rounds.

Perform this hypothesis test using α = 0.05.