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.
In: Finance
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.)
In: Statistics and Probability
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.
%
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.
%
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.
%
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.
%
In: Accounting
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.
In: Finance
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 rs? 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.
In: Finance
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.
In: Finance
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.
%
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.
%
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.
%
In: Finance
Andy "Nard Dog" Bernard recently graduated from Cornell. As a graduation gift, Nard Dog's Father gave him the family's old Toyota Prius because, according to the father, "the Ferarri feels more like your brother and the old Prius seems more your style." The Prius was originally purchased 8 years ago for $33,000 and today it is worth $16,000. Is the gift taxable to Andy? If so, how much is taxable? Cite at least one section of the Internal Revenue Code to support your answer. Is the gift taxable to to the father? If so, how much is taxable? Cite at least one section of the Internal Revenue Code to support your answer. If the father sold the Prius and gave the proceeds as a gift to Andy would the gift be taxable to either Andy or the Father? If so, how much would be taxable? Cite at least one section of the Internal Revenue Code to support your answer.
In: Accounting
Question:
For the previous planet and star (with a luminosity = 0.041
solar luminosity), assuming a
circular orbit, what would be the distance from the star such that
the planet’s surface
temperature is 280 K (no atmosphere or greenhouse effect to worry
about)? What are the
orbital period and circular velocity of the planet? What is the
circular velocity of the star (in
m/s) that would be measured with the Doppler shif
Related information below
Estimate the depth of the “transit” (in percent) for a 4
Jupiter---mass planet orbiting an
M---type main sequence star with a mass = 0.45 solar mass, and a
radius = 0.52 solar radius.
State your source or justification for the radius of the
planet
In: Physics
Discuss the differences between product costing and job costing. What type of company would general use product costing? What type of company would generally use job costing? Give a real world example of each and explain your reasoning.
In: Accounting