Questions
1. The bonds issued by Jensen & Son bear a 6 percent coupon, payable semiannually. The...

1. The bonds issued by Jensen & Son bear a 6 percent coupon, payable semiannually. The bond matures in 8 years and has a $1,000 face value. Currently, the bond sells at par. What is the yield to maturity?

2. A General Co. bond has an 8 percent coupon and pays interest annually. The face value is $1,000 and the current market price is $1,020.50. The bond matures in 20 years. What is the yield to maturity?

3. You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months ( semiannual). If your nominal annual required rate of return is 10 percent with semiannual payments, how much should you be willing to pay for this bond?

4. The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows as follows:

Years 1 through 4       $30,000 per year

Years 5 through 9       $35,000 per year

Year 10                         $40,000 per year

This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. What is the NPV for this investment?

5. Your firm wants to save $250,000 to buy some new equipment three years from now. The plan is to set aside an equal amount of money on the first day of each year starting today. The firm can earn a 4.7 percent rate of return. How much does the firm have to save each year to achieve their goal?

6. Your great-aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,500 on the first day of each year, starting immediately and continuing for fifty years. What is the value of this inheritance today if the applicable discount rate is 6.35 percent?

7. Your car dealer is willing to lease you a new car for $299 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent, what is the current value of the lease?

8. Toni adds $3,000 to her savings on the first day of each year. Tim adds $3,000 to his savings on the last day of each year. They both earn a 9 percent rate of return. What is the difference in their savings account balances at the end of thirty years?

9. Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $15,000 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a 14 percent rate of return is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

10. You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the payment of $100,000 today and an additional $100,000 two years from today. If the applicable discount rate is 8.75 percent, which offer should you accept and why

11. On December 1, you borrow $210,000 to buy a house. The mortgage rate is 8.25 percent. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on January 1. Which one of the following statements is true assuming that you repay the loan as agreed?

12. What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11.5 percent.

Year     Cash Inflows

                                                   1          $4,375

                                                   2          $      0

                                                   3          $8,750

                                                   4          $4,100

13. You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8 p ercent rather than 11 percent? If so, what should you do?

                                    Year                 Project A          Project B

                                       0                   -$240,000        -$198,000

                                       1                   $           0        $110,800

                                       2                   $         0         $ 82,500

                                       3                   $325,000        $ 45,000

14. It will cost $2,600 to acquire a small ice cream cart. Cart sales are expected to be $1,400 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?


15. Yancy is considering a project which will produce cash inflows of $900 a year for 4 years. The project has a 9 percent required rate of return and an initial cost of $2,800. What is the payback period?

16. Braun Industries is considering an investment project which has the following cash flows:

                  Year              Cash Flow

                  0                -$1,000

                  1                     400

                  2                     300

                  3                     500

                  4                     400

The company's cost of funds is 10 percent. What is the project's payback, internal rate of return, and net present value?

17. As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows:

Project X Project Z

            Year        Cash Flow Cash Flow

            0          -$100,000 -$100,000

            1             50,000 10,000

            2             40,000 30,000

            3             30,000 40,000

            4             10,000 60,000

If Denver's cost of capital is 15 percent, which project would you choose?

18. Lucinda Diamanti is 10 years old today (August 15th) and while all she’s interested in is her new bike, her parents Mr. & Mrs. Diamanti are considering how they will pay for her college education beginning in 8 years. They decide to set up a meeting with their financial adviser Cindy Morgan to discuss an education savings plan. During the meeting, the Diamanti’s inform Cindy that they have $8,000 they can use to begin the savings plan, and from what they can determine, Lucinda will require 4 years to complete her undergraduate degree in molecular biology. Cindy consults a reputable college reference to see that tuition costs are currently estimated at $32,000 per year and are expected to grow at 4% each year for the foreseeable future. The Diamanti’s are concerned that they won’t have enough money and ask Cindy how to make sure they have enough to completely pay for Lucinda’s undergraduate education. The Diamanti’s inform Cindy that they want to make deposits into the education savings plan on an annual basis until Lucinda’s first year in college at which point they will stop making contributions. Cindy tells them they can earn 8% annual interest on their savings plan. Your job to answer the following two questions (You may assume there are 8 years between today and the beginning of Lucinda’s first day in college):

Assuming the estimates on tuition costs are correct, how much money needs to be in the account when Lucinda begins college in 8 years to fund 4 years of college? Round your answer to a whole number.

19. How much money do the Diamanti’s need to deposit annually in order to reach their goal to fund Lucinda’s education fully? Remember that the  Diamanti’s have $8,000 to invest today. Round your answer to a whole number.

20. Please use the following facts to analyze this nest two questions:

Assume you just received a bill for services you and have the following two payment options:

Option 1:

Pay the entire bill of $600 now

Or

Option 2:

Pay:

$130 now

    And

$130 for each of the next 4 months

What annual interest rate (APR) are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34.

21. What Effective Annual Rate are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34.

22. Please use the following facts to analyze the next two questions:

Facts and Assumptions:

Lease Term in Months

24

Lease Down Payment

$      500.00

Monthly Lease Payments

$      300.00

Sales Tax Rate

8%

Lease Buyout at End

$ 15,000.00

Title Fee

$        25.00

Car Loan Market Rate

7%

Outright Purchase Price Before Tax and Title

$ 19,500.00

What is the NPV of the lease? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, -$34,567.50 would be entered as 34568.

23. What would it cost you to buy the car today if you were paying cash? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, $34,567.50 would be entered as 34568.

In: Finance

Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three...

Variable Costing Income Statement for a Service Company

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:

Cost Amount Cost Behavior Activity Rate
Labor costs for loading and unloading railcars $186,930 Variable $46.50 per railcar
Fuel costs 399,040 Variable 11.60 per train-mile
Train crew labor costs 233,920 Variable 6.80 per train-mile
Switchyard labor costs 123,414 Variable 30.70 per railcar
Track and equipment depreciation 198,100 Fixed
Maintenance 132,100 Fixed

Operating statistics from the management information system reveal the following for April:

Atlanta/
Baltimore
Baltimore/
Pittsburgh
Pittsburgh/
Atlanta
Total
Number of train-miles 12,080 9,520 12,800 34,400
Number of railcars 630 2,120 1,270 4,020
Revenue per railcar $517 $248 $401

a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Calculate the contribution margin ratio, rounded to one decimal place.

East Coast Railroad Company
Contribution Margin by Route
For the Month Ended April 30
Atlanta/Baltimore Baltimore/Pittsburgh Pittsburgh/Atlanta Total
Revenues $ $ $ $
Variable costs:
Labor costs for loading and unloading railcars $ $ $ $
Fuel costs
Train crew labor costs
Switchyard labor costs
Total variable costs $ $ $ $
Contribution margin $ $ $ $
Contribution margin ratio % % % %

b. Evaluate the route performance of the railroad using the report in (a).

The route performs significantly worse than do the other two routes. A close examination of the operating statistics indicates that this route runs railcars, combined with fairly total mileage. This combination suggests that the railroad is running many trains on the railroad. That is, the railroad’s profitability is sensitive to the size, or length, of the train in railcar terms.

In: Accounting

Suppose that the following data represents ages of all tenured faculty members in a certain academic...

Suppose that the following data represents ages of all tenured faculty members in a certain academic department, and we want to numerically describe the age distribution for this department only:

42, 39, 44, 50, 45, 42, 36, 47, 39, 42, 43, 47

What is the 3rd quartile?

In: Statistics and Probability

Given two independent random samples with the following results : n1=16 x‾1=92 s1=24    n2=12 x‾2=130 s2=31...

Given two independent random samples with the following results

: n1=16

x‾1=92

s1=24   

n2=12

x‾2=130

s2=31

Use this data to find the 80% confidence interval for the true difference between the population means. Assume that the population variances are equal and that the two populations are normally distributed.

Step 1 of 3: Find the point estimate that should be used in constructing the confidence interval.

Step 2 of 3: Find the margin of error to be used in constructing the confidence interval. Round your answer to six decimal places.

Step 3 of 3: Construct the 80% confidence interval. Round your answers to the nearest whole number.

In: Statistics and Probability

1. Baseball America has noticed the number of homeruns has been increasing in recent years in...

1. Baseball America has noticed the number of homeruns has been increasing in recent years in the MLB. They want to develop a 95% confidence interval that captures the true home run percentage. Home run percentage is defined as the number of home runs per 100 at bats. To do so, they randomly selected 64 current MLB players and calculated their homeruns per at bat for the previous year, and obtained a sample mean and sample standard deviation of 2.2 and 1.7, respectively.

a. Compute a 95% confidence interval for the population mean ? of the home run rate for all MLB players. Interpret with context to the problem.

b. The home run percentages for three MLB players are:

  • Player 1: Primetime Peanuts: 2.1

  • Player 2: Spleens “No Pop” McGillicuddy: 4

  • Player 3: Big Dog Lebowski: 1.5

Assess the confidence interval you calculated and describe how the home run rate for these three players compare to the interval calculated for the population mean.


c. If the confidence level was increased to 99%, would the interval be wider or narrower? Why?

d. Before collecting any data, Baseball America wants to achieve a maximum bound on error of 0.3. They suspect the range of home run rates to be 1.5 to 8. How large a sample should be used to be 95% confident of achieving this level of accuracy?

PLEASE SHOW ALL FORMULA AND WORK.

THANK YOU :)

In: Statistics and Probability

Case Study: Shannon Shannon is a 30-year-old woman preparing to run her first marathon. She regularly...

Case Study: Shannon

Shannon is a 30-year-old woman preparing to run her first marathon. She regularly runs 30km per week, attends the gym three times per week doing a mix of cardio- and weight training sessions and also plays touch football once a week in a social work team. She is up early most mornings and when she does not run will either practice yoga at home or do a 30- to 40-minute power walk.

Shannon ran competitively throughout secondary school, eventually stopping after a series of stress fractures. At the time, she was particularly sensitive about her weight and body composition as she was serious about becoming an elite distance runner and her coach regularly made comment about achieving a low body fat content. He would also assess body composition every month during the season using a ‘pinch test’; a test Shannon particularly hated.

Shannon’s current diet:

BF: 2 Hi Bran (Sanitarium) breakfast biscuits with no-fat soy milk, sliced banana and 1 tbsp of processed bran. Glass of juice          

Lunch: Wholemeal lavash bread with hommus, 60 g of chopped chicken pieces, avocado and salad. Piece of fruit      

Dinner: Dahl with brown rice and large side salad   Handful of dried fruit, nut and seed mix.

Supper: Fresh fruit × 1–2 pieces. Warm mug of carob made on no-fat soy milk

With twelve weeks to go before the marathon, Shannon has joined a running group that effectively doubled her weekly training distance to around 85 km. She is married, works full-time as an environmental economist and has no children, although has been thinking about children in the not-too-distant future.

Shannon now reports losing 3 kg over the first six weeks of the running group attendance; however, she felt this was a great result as she had almost returned to her old running weight. However, she reports that she is feeling excessively fatigued, and found that although, initially she seemed to be running well within her new training group, she has begun to struggle to maintain pace during the long group runs. She has persisted with her weight and cardio-sessions, along with her morning walks but recently found that she started to miss sessions because she lacks energy.

  1. What suggestions would you make about Shannon's exercise program?

  2. What is the Female Athlete Triad and could this state be applied to Shannon?
  3. What dietary changes would you recommend for Shannon and why?

What do you need to consider when assessing the nutrient needs of an athlete?

In: Biology

IN C++ PLEASE Requirements Write a program that takes in user input of two integer numbers...

IN C++ PLEASE

Requirements

Write a program that takes in user input of two integer numbers for height and width and uses a nested for loop to make a rectangle out of asterixes. The creation of the rectangle (i.e. the nested for loop) should occur in a void function that takes in 2 parameters, one for height and one for width. Make sure your couts match the sample output (copy and paste from those couts so you don't make a simple error). The Pre and Post condition should be a comment above the prototype; it should specify invalid input (there is no requirement for output on invalid input and it is not tested).

Rubric

-void function prototype, pre post comment, and definition matching prototype, and function called correctly 3 pts

-user input prompted and input accepted 2 pts

-correct bounds on the nested for loop 2 pts

-correct output 3 pts

Sample output (output in bold, input in nonbold):

What height do you want your rectangle?

5

What width do you want your rectangle?

5

*****

*****

*****

*****

*****

What height do you want your rectangle?

3

What width do you want your rectangle?

10

**********

**********

**********

What height do you want your rectangle?

6

What width do you want your rectangle?

2

**

**

**

**

**

**

What height do you want your rectangle?

10

What width do you want your rectangle?

7

*******

*******

*******

*******

*******

*******

*******

*******

*******

*******

In: Computer Science

(i) Design an 8-bit ripple adder which can add together two 8-bit numbers, inside a hierarchical...

(i) Design an 8-bit ripple adder which can add together two 8-bit numbers, inside a hierarchical block. Explain your design. Name your block with your student number: eg “123456 ripple adder”. (ii) Test your circuit in block form, showing four example additions with manual calculations to show they are correct. [

In: Electrical Engineering

You are in a world where there are only two assets, gold and U.S. stocks. You...

You are in a world where there are only two assets, gold and U.S. stocks. You are interested in investing your money in one, the other, or both assets. Consequently, you collect the following data on the returns on the two assets over the last six years.

Gold

Stock market

Average return

8% 20%

Standard deviation

25% 22%
Correlation - 0.4

1. If you were constrained to pick just one, which one would you choose? Explain.

(2) A friend argues that you must choose the gold. He tells you that the distribution of gold returns is positively skewed (while the distribution of stock returns is not skewed) and thinks that choosing the stock market ignores the big payoffs that you can occasionally get on gold. What would your response be? Explain. Hint: There is no right or wrong answer here, just write what you think and justify your position.

(3) How would a portfolio composed of equal proportions in gold and stocks do in terms of mean and variance? Explain and show your work.

(4) What are the proportions of gold and U.S. stocks in the minimum variance portfolio? Show your work in Excel and write your answer here.

(5) You now learn that GPEC (a cartel of gold-producing countries) is going to vary the amount of gold it produces with stock prices in the United States. (GPEC will produce less gold when stock markets are up and more when they are down.) What effect will this have on your portfolio? How would you change the composition of your portfolio? Explain.

In: Finance

Coefficients Standard Error t-Stat    P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept Calories...

Coefficients Standard Error t-Stat    P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept
Calories
Calories (x) Fat Content (y) Predicted y value Residual
140 7 5.75 1.25
160 8 6.77 1.23
70 2 2.18 -0.18
120 3.5 4.73 -1.23
170 16 7.28 8.72
290 12 13.4 -1.4
210 17 9.32 7.68
190 12 8.3 3.7
210 1.5 9.32 -7.82
130 3.5 5.24 -1.74
150 4.5 6.26 -1.76
160 12 6.77 5.23
150 7 6.26 0.74
140 6 5.75 0.25
180 4.5 7.79 -3.29
80 1 2.69 -1.69
200 7 8.81 -1.81
200 5 8.81 -3.81
180 7 7.79 -0.79
140 2.5 5.75 -3.

i need to fill in the top chart but with this given information but i have no idea what they are asking for or what calculations to do. i also do not know what my professor means by intercept

In: Statistics and Probability