Tweedledee Ltd and Tweedledum Ltd have identical expected operating cash flows of $600 million in perpetuity, but Tweedledee is financed entirely by equity, while Tweedledum’s capital structure includes 30 percent debt and 70 percent equity finance. Assume that the assumptions of a perfect capital market hold (including the assumption of risk-free debt), the measured equity beta for Tweedledee is 0.8, the yield on ten-year Government bonds is 6 percent and the market risk premium is 7 percent. Each firm has 500 million shares on issue.

What is the theoretical firm value for Tweedledum Ltd, rounded to the nearest $100 million?

Engineers must consider the breadths of male heads when designing helmets. The company researchers have determined that the population of potential clientele have head breadths that are normally distributed with a mean of 5.9-in and a standard deviation of 0.8-in.

In what range would you expect to find the middle 68% of most head breadths?
Between______and ______.

If you were to draw samples of size 50 from this population, in what range would you expect to find the middle 68% of most averages for the breadths of male heads in the sample?
Between ______ and ______.

Enter your answers as numbers. Your answers should be accurate to 2 decimal places.

1. Mr. Sadiq, working in manufacturing industry, he is one of the employee of daily wages. The straight time wage per hour OMR 25 He was worked 100 hours. Over time also consideration of 20 hours @double the rate. The employer with hold income Tax 15%, Employee FICA –OASDI 5.5%, Medicare – 2%. The employer also pays payroll taxes for FICA 6%, Medicare 2% and state 6% and federal unemployment 0.8% respectively.

Requirements:

1. Compute Mr. Sadiq gross pay and net (Take-home) pay for the week.
2. Record the payroll entries that employers, employee taxes and employer taxes.

Let Y1, Y2, . . . , Y20 be a random sample of size n = 20 from a normal distribution with unknown mean µ and known variance σ 2 = 5. We want to test H0; µ = 7 vs. Ha : µ > 7. (a) Find the uniformly most powerful test with significance level 0.05. (b) For the test in (a), find the power at each of the following alternative values of µ: µa = 7.5, 8.0, 8.5, and 9.0. (c) Sketch a graph of the power function (d) What is the smallest sample size n such that an α = 0.05-level test has power at least 0.8 when µ = 8?

1. What are the expected return and the standard deviation for the CoR Stock?

                                                            CoR Stock

2. Your client decides to invest $1.4 million in Flama stock and $0.6 million in Blanca stock. The risk-free rate is 4% and the market risk premium is 5%. The beta of the Flama Stock is 1.2; and the beta of the Blanca stock is 0.8.
   1. What are the weights for this portfolio?
   2. What is the portfolio beta?
   3. What is the required return of the portfolio

Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 8%, and the market’s average return was 14%. Performance is measured using an index model regression on excess returns.

a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.)

Treynor measure:

Engineers must consider the breadths of male heads when designing helmets. The company researchers have determined that the population of potential clientele have head breadths that are normally distributed with a mean of 6.7-in and a standard deviation of 0.8-in.

In what range would you expect to find the middle 98% of most head breadths?
Between ___ and ___ .

If you were to draw samples of size 34 from this population, in what range would you expect to find the middle 98% of most averages for the breadths of male heads in the sample?
Between ___ and ___ .

Enter your answers as numbers. Your answers should be accurate to 2 decimal places.

Calculate the heat-removal factor for a collector having an overall heat loss coefficient of 10 W/m2 K and constructed of copper fins and tubes (k = 390 W/m?K). Tube-to-tube center distance is 12 cm, fin thickness is 0.05 cm, tube diameter is 1.5 cm, and fluid-tube heat transfer coefficient is 1000 W/m2K. The cover transmittance to solar radiation is 0.8 and is independent of direction. The solar absorptance of the absorber plate is 0.9, the collector is 1 m wide and 2 m long, and the water flow rate is 0.03 kg/s. The water temperature is 330 K.