An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers to two decimal places.
| Price @ 8% | Price @ 7% | Percentage Change | |
| 10-year, 10% annual coupon | $ | $ | % |
| 10-year zero | |||
| 5-year zero | |||
| 30-year zero | |||
| $100 perpetuity |
In: Finance
Bob works for Jet Skis Incorporated, and is the top salesperson for the past five years. The manager Bill tells Bob “I have to let you go, good luck finding a new job.” Bob asks why and Bill says “You are an at-will employee, I do not have to give you a reason.” Bob, who is 44 years old, notices three other employees were also terminated, all identified as Hispanic ethnicity, over 40 years of age. Does Bob have any actionable claim he can file against the company? Explain what is the bases of his claim?
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Zoey Responded with:
I’m hopeful that Bill is not a manager in the HR department! Bob absolutely has an actionable item against Bill and Jet Skis, Inc. for several reasons that he must prove – which should not be hard based on the information presented. Federal and state discrimination statues prohibit employers (except in the state of Montana) from basing employment decisions on an employee’s race, color, religion, sex, national origin, age, disability or veteran status.[1] Although the laws governing employment vary from state to state (and Country to Country), there are a few basic elements for Employment-At-Will (or Termination-At-Will) suggesting that employers may dismiss at will for good cause, for no cause, or even for a cause that is morally wrong. However, there are limitations to employment-at-will which can include fixed-term contracts as well as proscriptive and retaliatory statutes. The proscriptive limitations generally prohibit discharge based on employee characteristics, such as laws barring discrimination on the basis of age, race, or disability. On the other hand, retaliatory statutes bar discharge in response to something an employee has done, such as whistle-blower protection or laws prohibiting a company from firing an employee who has filed a workers’ compensation claim.[2] Additionally, the reason for dismissal must not violate federal or state law.[3]
The Age Discrimination in Employment Act (ADEA) forbids age discrimination against people who are age 40 or older.[4] - Bob is 44 years old. The Equality Act of 2010 says that you must not discriminate based on color, nationality (including citizenship), ethnic or national origins, and racial groups.[5] - the given scenerio presents Bob as one of four employees terminated who are all of Hispanic ethnicity and all over the age of 40. Without additional information, it does appear that the EEOC would at least open an investigation into Bob's termination. Bill's actions would be very difficult to defend in court without written and substantiated documentation for the termination of the employees.
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Now for chegg, I want you to respond to Zoey in a minimum of two paragraphs or more. Focus on Zoey's statement and respond to that.
In: Operations Management
Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 8%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero-growth firm and pays out all of its earnings as dividends. The firm's EBIT is $13 million, and it faces a 25% federal-plus-state tax rate. The market risk premium is 6%, and the risk-free rate is 6%. BEA is considering increasing its debt level to a capital structure with 40% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 11%. BEA has a beta of 0.8.
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What is BEA's unlevered beta? Use market value D/S (which is the same as wd/ws) when unlevering. Do not round intermediate calculations. Round your answer to two decimal places. |
What are BEA's new beta, cost of equity (Rs), and WACC if it has 40% debt? Do not round intermediate calculations. Round your answers to two decimal places.
In: Finance
Solve the following equations for the unknown.
1. G - 24 = 75
2. 3(2c - 5) = 45
3. n/4 - 7 = 8
For the following statements, underline the key words and translate into an expression.
4. 15 less than one-ninth of P
5. 3 times the quantity of H less 233
For the following statement, underline the key words and translate into an equation.
6. A number increased by 11 is 32
7. The sum of 2 more than 6 times a number and 7 times that number is that number decreased by 39
Set up and solve equations for each of the following business situations.
8. At Telepower Plus, long-distance phone calls to China cost $0.59 for the first minute and $0.25 for each additional minute plus an additional roaming charge of $2.50. If the total charge of a call to Beijing was $11.84, how long did the call last?
9. A Cold Stone Creamery ice cream shop sells sundaes for $3.60 and banana splits for $4.25. The shop sells four times as many sundaes as banana splits.
a. If total sales amount to $3,730 last weekend, how many of each were sold?
b. What were the dollar sales of each?
Use ratio and proportion to solve the following business situation.
10. Angeles Hatcher is planting flower bulbs in her garden for this coming summer. She intends to plant 1 bulb for every 5 square inches of flower bed.
a. How many flower bulbs will she need for an area measuring 230 square inches?
b. If the price is $1.77 for every 2 bulbs, how much will she spend on the flower bulbs?
In: Advanced Math
Solve the following equations for the unknown.
1. G - 24 = 75
2. 3(2c - 5) = 45
3. n/4 - 7 = 8
For the following statements, underline the key words and translate into an expression.
4. 15 less than one-ninth of P
5. 3 times the quantity of H less 233
For the following statement, underline the key words and translate into an equation.
6. A number increased by 11 is 32
7. The sum of 2 more than 6 times a number and 7 times that number is that number decreased by 39
Set up and solve equations for each of the following business situations.
8. At Telepower Plus, long-distance phone calls to China cost $0.59 for the first minute and $0.25 for each additional minute plus an additional roaming charge of $2.50. If the total charge of a call to Beijing was $11.84, how long did the call last?
9. A Cold Stone Creamery ice cream shop sells sundaes for $3.60 and banana splits for $4.25. The shop sells four times as many sundaes as banana splits.
a. If total sales amount to $3,730 last weekend, how many of each were sold?
b. What were the dollar sales of each?
Use ratio and proportion to solve the following business situation.
10. Angeles Hatcher is planting flower bulbs in her garden for this coming summer. She intends to plant 1 bulb for every 5 square inches of flower bed.
a. How many flower bulbs will she need for an area measuring 230 square inches?
b. If the price is $1.77 for every 2 bulbs, how much will she spend on the flower bulbs?
In: Accounting
The physician wanted to know if conception periods were different due to the degrees of coffee drinking habit. Thus she collected data on the number of month to conception for 3 light coffee drinkers (1-2 cups per day), 4 moderate coffee drinkers (3-4 cups per day), and 3 heavy coffee drinkers (more than 4 cups per day). The table below summarizes the month to conception as a function of the three groups (light, moderate, and heavy coffee drinkers).
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Months to conception for people with different coffee drinking |
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Light coffee drinkers |
Moderate coffee drinkers |
Heavy coffee drinkers |
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4 |
5 |
8 |
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5 |
6 |
9 |
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6 |
6 |
10 |
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7 |
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You are asked to analyze the above data with one-way ANOVA. Please answer the following questions with regards to one-way ANOVA on the above data.
1. State the null and alternative hypotheses (2pts)
2. Identify the degrees of freedom(s). (2pts)
3. Identify the F critical based on the degrees of freedoms above by consulting with F table (2pts)
4. Here is the summary table presenting SSwithin, SS between, and SStotal. Please compute F value based on SSs and Degrees of Freedoms that you identified in the above. This should require computing MSwithin, MSbetween, and F. (2pts each for these three values)
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SS |
DF |
MS |
F |
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|
Between |
26.4 |
Use answers for 2 above |
?? |
?? |
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Within |
6.00 |
Use answers for 2 above |
?? |
|
|
Total |
32.4 |
5. State your decision on the hypothesis based on the calculation above that led to the F value (2pt).
6. You tried to replicate above study with the exact same number of participants, and you got the following results:
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Months to conception for people with different coffee drinking |
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Light coffee drinkers |
Moderate coffee drinkers |
Heavy coffee drinkers |
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2 |
2 |
7 |
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5 |
5 |
9 |
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8 |
7 |
11 |
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10 |
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You may notice that the means of the three groups are the same as the previous results with three means for L, M, H conditions being 5, 6, and 9 respectively. Please fill out the blank sections of the summary table below based on your understanding/knowledge of how One-way ANOVA works. If you get the correct F value, you will get 9pts. If you do not get the correct F value, 1 pt is given for each of the 6 values (SSs, DFs, and MSs) that is correct.
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SS |
DF |
MS |
F |
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|
Between |
?? |
?? |
?? |
?? |
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Within |
?? |
?? |
?? |
|
|
Total |
86.4 |
7. Please compare the two results (and two summary tables), and explain why this difference in F values occurred across the two studies. The explanation should involve the concept of variance between and variance within. (3pt)
In: Statistics and Probability
State Farm Insurance studies show that in Colorado, 50% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 8 property damage claims involving automobiles are selected at random.
(a) Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities. Maple Generated Plot Maple Generated Plot Maple Generated Plot Maple Generated Plot
(b) What is the probability that seven or more claims are made by males under age 25? (Use 3 decimal places.) (c) What is the expected number of claims made by males under age 25? What is the standard deviation of the r-probability distribution? (Use 2 decimal places.) μ σ
In: Statistics and Probability
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 38 0 21 24 19 16 36 −22 −24 −8 y: 10 −2 27 25 16 15 15 −10 −7 −5 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to two decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 38 0 21 24 19 16 36 −22 −24 −8 y: 10 −2 27 25 16 15 15 −10 −7 −5 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to two decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit Use the intervals to compare the two funds. 75% of the returns for the balanced fund fall within a narrower range than those of the stock fund. 75% of the returns for the stock fund fall within a narrower range than those of the balanced fund. 25% of the returns for the balanced fund fall within a narrower range than those of the stock fund. 25% of the returns for the stock fund fall within a wider range than those of the balanced fund. (d) Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number.) x y CV % % Use the coefficients of variation to compare the two funds. For each unit of return, the stock fund has lower risk. For each unit of return, the balanced fund has lower risk. For each unit of return, the funds have equal risk. If s represents risks and x represents expected return, then s/x can be thought of as a measure of risk per unit of expected return. In this case, why is a smaller CV better? Explain. A smaller CV is better because it indicates a higher risk per unit of expected return. A smaller CV is better because it indicates a lower risk per unit of expected return
In: Statistics and Probability
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 38 0 21 24 19 16 36 −22 −24 −8 y: 10 −2 27 25 16 15 15 −10 −7 −5 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to two decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 38 0 21 24 19 16 36 −22 −24 −8 y: 10 −2 27 25 16 15 15 −10 −7 −5 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to two decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit Use the intervals to compare the two funds. 75% of the returns for the balanced fund fall within a narrower range than those of the stock fund. 75% of the returns for the stock fund fall within a narrower range than those of the balanced fund. 25% of the returns for the balanced fund fall within a narrower range than those of the stock fund. 25% of the returns for the stock fund fall within a wider range than those of the balanced fund. (d) Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number.) x y CV % % Use the coefficients of variation to compare the two funds. For each unit of return, the stock fund has lower risk. For each unit of return, the balanced fund has lower risk. For each unit of return, the funds have equal risk. If s represents risks and x represents expected return, then s/x can be thought of as a measure of risk per unit of expected return. In this case, why is a smaller CV better? Explain. A smaller CV is better because it indicates a higher risk per unit of expected return. A smaller CV is better because it indicates a lower risk per unit of expected return
In: Statistics and Probability
An industrial engineer employed by a beverage bottler is interested in the effects of two different types of 32-ounces bottles vs the potential fatigue differences resulted from delivering 12-bottle cases of the product. The two bottle types are glass and plastic. Two workers are used to perform the task that consists of moving 40 cases of the product 50 feet on a standard type of hand truck and then, stacking the cases in a display.
As a measured of the amount of effort required, he measured the elevation of the heart rate (BPM) induced by the task. Use a confidence level of 95%. The results follow.
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Bottle type |
Worker 1 |
Worker 2 |
||
|
Glass |
69 |
75 |
70 |
63 |
|
88 |
65 |
66 |
61 |
|
|
Plastic |
74 |
65 |
63 |
60 |
|
72 |
51 |
66 |
65 |
|
Use the analysis of variance to compare your conclusions for part (a).
Analyze the residuals. Are there any obvious problem
Based on an analysis of main effect and interaction plots, what factor levels would you recommend using? Explain.
In: Statistics and Probability