Questions
Baskin Robbin Corporation's capital structure is 30% debt, 10% preferred, and 60% common equity. The company’s...

Baskin Robbin Corporation's capital structure is 30% debt, 10% preferred, and 60% common equity. The company’s cost of debt is 7%, cost of preferred is 8%, and cost of equity is 11%. The firm's marginal tax rate is 40 percent. What is the weighted average cost of capital for Baskin?

In: Finance

Quality Specifications for the bottle filling process = 355 ± 1.5 ml The sample measurements for...

Quality Specifications for the bottle filling process = 355 ± 1.5 ml

The sample measurements for Process A & Process B can be found in the attached Excel file Other relevant information for the analysis:

Process A = 11.5 million bottles

Process B = 6.9 million bottles

Estimated cost of overfilling = $0.071 per bottle

Estimated cost of underfilling = $0.134 per bottle

Process A Process B
bottle nbr fill volume, ml bottle nbr fill volume, ml
1 353.8716 1 356.4036
2 356.4629 2 354.8854
3 354.3566 3 356.2884
4 354.9326 4 355.9886
5 354.1558 5 355.3441
6 354.6894 6 355.141
7 353.1613 7 355.5605
8 354.492 8 354.7924
9 353.2064 9 355.7594
10 355.0353 10 356.2499
11 354.1497 11 356.7416
12 355.3837 12 355.6718
13 354.8073 13 355.8648
14 354.52 14 354.8881
15 354.127 15 355.7184
16 354.0073 16 355.5325
17 354.5865 17 355.5129
18 355.2267 18 356.0567
19 354.1048 19 355.9526
20 354.7092 20 356.2481
21 354.8251 21 355.5009
22 355.1323 22 355.8066
23 355.6323 23 355.6735
24 355.0618 24 355.5141
25 355.6289 25 355.6569
26 354.5315 26 355.0254
27 354.6454 27 356.4625
28 354.1473 28 356.3046
29 355.5054 29 356.2273
30 354.6658 30 355.4353
31 354.777 31 356.0174
32 354.6489 32 356.3742
33 354.9304 33 355.3607
34 356.0081 34 355.6758
35 353.5191 35 355.2479
36 354.089 36 356.5349
37 355.4005 37 356.1038
38 354.7968 38 356.1314
39 354.5803 39 356.1499
40 354.5402 40 356.9204
41 353.9612 41 356.0494
42 355.3751 42 355.8082
43 355.2035 43 355.7958
44 354.7033 44 356.4498
45 355.5842 45 355.0805
46 355.2069 46 355.6821
47 355.291 47 355.7853
48 355.5132 48 356.0396
49 354.4062 49 354.5163
50 354.8773 50 355.1708
51 354.0812 51 356.8699
52 355.5711 52 355.8047
53 356.8612 53 356.1663
54 354.6389 54 356.2781
55 355.4831 55 355.6501
56 354.4165 56 355.1498
57 354.4106 57 356.1733
58 353.8034 58 355.3848
59 355.779 59 355.4425
60 354.3574 60 355.7853
61 354.2061 61 355.6234
62 355.3 62 355.2701
63 353.8064 63 355.3693
64 355.0172 64 356.0998
65 355.2049 65 354.3443
66 356.0506 66 355.2375
67 355.5254 67 356.0556
68 355.9298 68 355.6644
69 354.6942 69 355.9695
70 354.879 70 356.0207
71 354.876 71 355.8412
72 353.2011 72 356.013
73 355.69 73 356.0578
74 355.2879 74 355.0693
75 354.881 75 356.2371
76 353.4271 76 356.4531
77 354.3281 77 355.8708
78 355.4182 78 355.7516
79 354.7104 79 356.0311
80 354.5383 80 355.336
81 354.2397 81 356.6274
82 355.7615 82 355.5591
83 355.7941 83 355.577
84 353.7047 84 356.3873
85 355.3057 85 355.4378
86 355.4152
87 355.7074
88 354.8495
89 356.3219
90 355.2006
91 356.162
92 356.7196
93 354.69
94 354.7049
95 355.2266
96 355.7611
97 356.1532
98 355.2149
99 354.9555
100 356.2889
101 356.1144
102 355.8599
103 356.2266
104 356.2091
105 355.8744
106 355.8112
107 355.1513
108 355.2167
109 355.2743
110 355.2112
111 355.8082
112 355.8028

a. Calculate numerical measures for Central Tendency and for Dispersion on both processes.

b. Construct confidence interval for the true Mean (µ) of each of the processes. Comment on the results. Is there an issue with the mean of any of the processes? Explain the results.

c. Construct confidence interval for the true Standard Deviation (σ) of each of the processes. Comment on the results. Is there an issue with the dispersion of any of the processes? Explain the results.

d. Run a hypothesis test (a t-test) for the Mean of each process being equal to the target value of 355 ml. Comment on the results e. Draw a histogram (with normal-distribution fit) for both processes; interpret the results (also, draw the two theoretical normal distributions overlapping in the same graph to facilitate interpretation)

f. Construct a Normal Probability Plot for each of the process. What can you conclude?

g. Estimate the expected number of bottles overfilled per year from each of the processes

h. Estimate the expected number of bottles overfilled per year from each of the processes

i. Calculate and compare the annual cost of overfilling AND underfilling per process. Comment on the results.

j. Make your Final Conclusions and Recommendations

minitab plz

In: Math

The accompanying data are the amounts of fat (in ounces of fat per one hundred ounces...

The accompanying data are the amounts of fat (in ounces of fat per one hundred ounces of meat) found in samples of two types of meat products. The fat contents are normally distributed and have equal variances for the two meat types. Do the meats have different fat contents? That is, test the null hypothesis that the means are equal vs. the alternative that they are not equal. Use alpha = 0.05. Meat 1 - 30 26 30 19 25 37 27 38 26 31 Meat 2 - 40 34 28 29 26 36 28 37 35 42

In: Statistics and Probability

Consider two stocks, D and E, with expected returns and volatilities given by E[rD]=15%, sD=20%, E[rE]=20%,...

Consider two stocks, D and E, with expected returns and volatilities given by E[rD]=15%, sD=20%, E[rE]=20%, sE=40%. The riskless rate is 2%. Consider now two portfolios P and Q with the following expected returns and standard deviations: E[rP]=16.2%, sP=18.77% and E[rQ]=16%, sQ=19.23%. These portfolios are formed by investing in stocks D and E and the riskless asset. It is known that one of these portfolios is a tangency portfolio for the efficient frontier constructed by investing in stocks D and E and the riskless asset. Determine the tangency portfolio and its portfolio weights.

In: Finance

your wonderful parents established a college savings plan for you when you were born. They deposited...

your wonderful parents established a college savings plan for you when you were born. They deposited $50 into the account on the last day of each month. The account has earned 10% compounded monthly. Now you are off to Monash university. What equal amount can they withdraw beginning today (your 18th birthday) and each year for 4 years to spend on your education, assuming that the account now earns 7% annually?

In: Finance

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:


Problem 1


Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:


Tables

Chairs

0

100

10

80

20

60

30

40

40

20

50

0

  1. Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.

  2. What is Bill’s opportunity cost of producing one additional table?

  3. What is Bill’s opportunity cost of producing one additional chair?

  4. Currently Bill is producing 20 tables and 40 chairs.

  1. Is this allocation of resources efficient? Why?

  2. Show this allocation on the graph and advise Bill how he can be more efficient.

Problem 2

Suppose the market for corn is given by the following equations for supply and demand:

            QS = 2p − 2

            QD = 13 − p

where Q is the quantity in millions of bushels per year and p is the price.

  1. Calculate the equilibrium price and quantity.

  2. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.

  3. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.

  1. The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.

  1. Would there be a surplus or a shortage?

  2. What would be the quantity of excess supply or demand that results?

  3. Use the graph to show you results.

In: Economics

Problem 1 Bill can produce either tables or chairs. Bill can work up to 10 hours...

Problem 1

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:

Tables

Chairs

0

100

10

80

20

60

30

40

40

20

50

0

  1. Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.
  2. What is Bill’s opportunity cost of producing one additional table?
  3. What is Bill’s opportunity cost of producing one additional chair?
  4. Currently Bill is producing 20 tables and 40 chairs.
  1. Is this allocation of resources efficient? Why?
  2. Show this allocation on the graph and advise Bill how he can be more efficient.

Problem 2

Suppose the market for corn is given by the following equations for supply and demand:

            QS = 2p − 2

            QD = 13 − p

where Q is the quantity in millions of bushels per year and p is the price.

  1. Calculate the equilibrium price and quantity.
  2. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
  3. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.
  1. The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.
  1. Would there be a surplus or a shortage?
  2. What would be the quantity of excess supply or demand that results?
  3. Use the graph to show you results.

In: Economics

Problem 1Bill can produce either tables orchairs. Bill can work up to 10 hours...

Problem 1


Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:


Tables

Chairs

0

100

10

80

20

60

30

40

40

20

50

0

  1. Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.

  2. What is Bill’s opportunity cost of producing one additional table?

  3. What is Bill’s opportunity cost of producing one additional chair?

  4. Currently Bill is producing 20 tables and 40 chairs.

  1. Is this allocation of resources efficient? Why?

  2. Show this allocation on the graph and advise Bill how he can be more efficient.

Problem 2

Suppose the market for corn is given by the following equations for supply and demand:

            QS = 2p − 2

            QD = 13 − p

where Q is the quantity in millions of bushels per year and p is the price.

  1. Calculate the equilibrium price and quantity.

  2. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.

  3. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.

  1. The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.

  1. Would there be a surplus or a shortage?

  2. What would be the quantity of excess supply or demand that results?

  3. Use the graph to show you results.

In: Economics

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:

 

Problem 1

 

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:

 

Tables

Chairs

0

100

10

80

20

60

30

40

40

20

50

0

  1. Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.
  2. What is Bill’s opportunity cost of producing one additional table?
  3. What is Bill’s opportunity cost of producing one additional chair?
  4. Currently Bill is producing 20 tables and 40 chairs.
  1. Is this allocation of resources efficient? Why?
  2. Show this allocation on the graph and advise Bill how he can be more efficient.

Problem 2

Suppose the market for corn is given by the following equations for supply and demand:

            QS = 2p − 2

            QD = 13 − p

where Q is the quantity in millions of bushels per year and p is the price.

  1. Calculate the equilibrium price and quantity.
  2. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
  3. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.
  1. The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.
  1. Would there be a surplus or a shortage?
  2. What would be the quantity of excess supply or demand that results?
  3. Use the graph to show you results.

In: Economics

Oak Mart, a producer of solid oak tables, reports the following data from its second year...

Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit $ 310 per unit
Units produced this year 105,000 units
Units sold this year 108,500 units
Units in beginning-year inventory 3,500 units
Beginning inventory costs
Variable (3,500 units × $130) $ 455,000
Fixed (3,500 units × $70) 245,000
Total $ 700,000
Manufacturing costs this year
Direct materials $ 40 per unit
Direct labor $ 62 per unit
Overhead costs this year
Variable overhead $ 3,200,000
Fixed overhead $ 7,400,000
Selling and administrative costs this year
Variable $ 1,450,000
Fixed 4,400,000

Exercise 19-7 Part 1

1. Prepare the current-year income statement for the company using variable costing.

In: Accounting