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 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 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%, 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 $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
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 |
Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.
What is Bill’s opportunity cost of producing one additional table?
What is Bill’s opportunity cost of producing one additional chair?
Currently Bill is producing 20 tables and 40 chairs.
Is this allocation of resources efficient? Why?
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.
Calculate the equilibrium price and quantity.
Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.
The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.
Would there be a surplus or a shortage?
What would be the quantity of excess supply or demand that results?
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 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 |
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.
In: Economics
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 |
Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.
What is Bill’s opportunity cost of producing one additional table?
What is Bill’s opportunity cost of producing one additional chair?
Currently Bill is producing 20 tables and 40 chairs.
Is this allocation of resources efficient? Why?
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.
Calculate the equilibrium price and quantity.
Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.
The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.
Would there be a surplus or a shortage?
What would be the quantity of excess supply or demand that results?
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 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 |
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.
In: Economics
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