Case scenario 4: You see a 23-year-old in post-natal ward who has been diagnosed with lactational mastitis. Her breasts are engorged, painful, red and warm to touch.

Explain the pathogenesis of lactational mastitis. Develop a management plan for this patient’s condition. Recommend three (3) strategies to minimize the recurrence of lactational mastitis.

Photosynthesis relies on assemblies of molecules that work in tandem to produce energy from water and light. One set of molecules absorbs light primarily in the red and another absorbs light primarily in the blue. Draw the energy level diagram for each and draw the absorption profile versus photon energy. Explain why green leaves turn yellow in the Fall.

Cloud Nine provides its clients with a monthly newsletter that offers recommendations about stocks to buy or sell. Doug Layton, Cloud Nine’s president, has asked your opinion on whether dot-com stocks might be good investments for the future. He specifically mentioned Google, eBay, Amazon.com, and Yahoo!, but he said you could suggest other companies. Doug wants you to do some Internet research to learn more about these Web-based companies and their prospects. You can use a search engine or start by visiting the Web sites of publications such as Forbes, Fortune Magazine, Business Week, or The Wall Street Journal, among others.

To perform this task:

1. Find out how the stock market works and how stocks are valued.

2. Research the Web to find IT companies whose stocks are traded publicly.

3. Choose two companies and pretend to buy $5,000 of its stocks.

4. Explain why did you choose those companies?

5. What is the current price per share? and what is the total value of investment per stock?

6. Report each week to your class.

Explain to your non-technical client how the practice of financial risk management is similar to hedging, and how is it different.

State and discuss the reasons why Qantas should hedge and why it shouldn’t hedge its fuel costs.

A nonprofit organization sent mailing labels along with a request for donations to a random sample of 75,000 potential donors on their mailing list and received 5625 donations from the effort. In the past, the organization has had a contribution rate of 6%, but the director of the program hoped that the addition of the mailing labels would increase that rate. Perform a hypothesis test using α=0.05. Be sure to include the following:

State the null and alternative hypotheses in symbols and words. Assume conditions have been met.

Perform your hypothesis test "by hand" using the equation editor. Be sure to use the appropriate probability notation. Don't write your conclusion in this step.

Construct a 90% confidence interval, again showing calculations "by hand". Don't write your conclusion in this step.

State your FULL conclusion making sure to site whether we reject or fail to reject and what that means in context based on the p-value. Then support your conclusion with the results from your confidence interval. Then be sure to note whether the hypothesized value falls in our interval and what that means. (3 pts.)

6.

COST OF COMMON EQUITY

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $24.50 per share; its last dividend was $2.50; and it will pay a $2.70 dividend at the end of the current year.

Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.
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If the firm's beta is 1.40, the risk-free rate is 5%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.
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If the firm's bonds earn a return of 8%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.
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If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.
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COST OF COMMON EQUITY

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $21.25 per share; its last dividend was $2.50; and it will pay a $2.65 dividend at the end of the current year.

1. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.
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2. 
   
3. If the firm's beta is 2.20, the risk-free rate is 4%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.
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4. 
   
5. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be r_s? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.
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6. 
   
7. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.
   %

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $26.25 per share; its last dividend was $1.50; and it will pay a $1.62 dividend at the end of the current year.

A. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.

B. If the firm's beta is 2.20, the risk-free rate is 4%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.

C. If the firm's bonds earn a return of 8%, based on the bond-yield-plus-risk-premium approach, what will be r_s? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.

D. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.

Cost of Common Equity

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $21.00 per share; its last dividend was $1.50; and it will pay a $1.56 dividend at the end of the current year.

1. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.
   %
2. If the firm's beta is 2.20, the risk-free rate is 4%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.
   %
3. If the firm's bonds earn a return of 10%, based on the bond-yield-plus-risk-premium approach, what will be r_s? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.
   %
4. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.
   %

the future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $23.50 per share; its last dividend was $2.50; and it will pay a $2.70 dividend at the end of the current year.

a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.

%

b. If the firm's beta is 1.80, the risk-free rate is 3%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.

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c. If the firm's bonds earn a return of 9%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.

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d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations.

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