Questions
eBook Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc. are...

eBook Problem Walk-Through

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $25.75 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year.

  1. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

      %

  2. If the firm's beta is 2.0, the risk-free rate is 7%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.

      %

  3. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.

      %

  4. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

In: Finance

Suppose the guests at the hotel have an average weight of 180 with a standard deviation...

Suppose the guests at the hotel have an average weight of 180 with a standard deviation of 50 pounds. An elevator is designed to carry only 10 people with a maximum capacity of 2400 pounds.

5. What is the mean of the sample mean?

6. What is the standard deviation for the sample mean of the 10 people? (Use 2 decimals)

7. If 10 guest ride the elevator at one time, what is the probability that the elevator is overweight? (Hint: If the 10 people weigh more than 2400 pounds, how much does each person have to weigh on average? (Use 4 decimals)

8. If 12 guests ride in the elevator at one time, now what is the probability that the elevator is overweight? (Hint: the standard deviation also changes here) (Use 4 decimals)

In: Statistics and Probability

Write a program that first gets a list of 5 integers from input. Then, get another...

Write a program that first gets a list of 5 integers from input. Then, get another value from the input, and output all integers less than or equal to that value.
Ex: If the input is 50 60 140 200 75 100, the output is:
50 60 75
For coding simplicity, follow every output value by a space, including the last one. Then, output a newline.
Such functionality is common on sites like Amazon, where a user can filter results.

in CORAL PLEASE

In: Computer Science

KC, a fast-food restaurant, serves fried chicken, fried fish, and French fries. The managers have estimated...

KC, a fast-food restaurant, serves fried chicken, fried fish, and French fries. The managers have estimated the costs of a batch of fried chicken for KC's all-you-can-eat Friday Fried Fiesta. Each batch must be 100 pieces. The chicken is precut by the chain headquarters and sent to the stores in 10-piece bags. Each bag costs $3. Preparing a batch of 100 pieces of chicken with KC's special coating takes one employee two hours. The current wage rate is $8 per hour. Another cost driver is the cost of putting fresh oil into the fryers. New oil, costing $5, is used for each batch.

(a) Determine the cost of preparing one batch of 100 pieces.
(b) If management projects that it will sell 300 pieces of fried chicken, determine the total batch and unit costs.

(c) If management estimates the sales to be 250 pieces, determine the total costs.

(d) How much will the batch costs increase if the government raises the minimum wage to $10 per hour?

(e) If management decided to reduce the number of pieces in a batch to 50, determine the cost of preparing 250 pieces. Assume that the batch would take half as long to prepare, and management wants to replace the oil after 50 pieces are cooked.

In: Accounting

At the end of the December 31 2016 fiscal year, Yin trucking corporation which follows IFRS...

At the end of the December 31 2016 fiscal year, Yin trucking corporation which follows IFRS 16, negotiated and closed a long term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were erected to the company’s specifications on land owned by the company. On January 1 2017, Yin trucking corporation took possession of the leased properties and made a cash payment of 1,048,00$. Although the useful life of each terminal is 40 years, the non cancellable lease runs for 20 years from January 1 2017 with a purchase option available upon expiration of the lease. The 20 year lease is effective for the period January 1 2017 through December 31 2036. Advance rental payments of 900,000$ are payable to the lessor on January 1 of each first 10 years of the lease term. Advance rental payments of 320,000$ are due on January 1 of each first 10 years of the lease term.The company has an option of purchasing all of these leased facilities for 1 million on December 31 2036 although their fair value at that time is to be estimated at 3 million$. At the end of the 40 years, the terminals and the facilities will have no remaining value. Yin trucking must also make annual payments on January 1 of each year to the lessor of 125,000$ for property taxes and 23,00$ for insurance. The lease was negotiated at 6% rate of return.

Required:

1) assuming a capitalized value of terminal facilities at January 1 2017 of 8.7 million, prepare the journal entries for YIN TRUCKING CORPORATION.

a) The signing of the lease

b) the cash payment to the lessor on January 1 2017

c) Depreciation of the cost of the properties for 2017 using the straight line method

d) The accrual of interest expense at December 31 2017 and any other adjusting journal entries

In: Accounting

C++ , Write an iterative routine that will have 2 queues. Loop for 100 times and...

C++ , Write an iterative routine that will have 2 queues. Loop for 100 times and in the loop roll two die and place the first result into the queue1 and second into queue2. Then dequeue the rolls one at a time from each, printing each pair, and count how many times two rolls either add up to 7 or are doubles (i.e. same value). After the queues are empty, print out the number of 7s and doubles.

Assume srand has already been done.

In: Computer Science

A game is to be played by first flipping a fair coin, and then drawing balls...

A game is to be played by first flipping a fair coin, and then drawing balls without replacement from a bin. If you flip heads you get to draw one ball, and if you flip tails you get two draw two balls. The bin contains 7 red balls, and 4 white balls. Let W = 4x - 2 be your win amount, where X represents the number of white balls drawn. What is your expected win amount on any given play?

In: Math

A researcher estimates that the average revenue of the largest businesses in the U.S. is greater...

  1. A researcher estimates that the average revenue of the largest businesses in the U.S. is greater than $24 billion. A random sample of 50 companies is selected, and the revenues in billions of dollars are recorded. Assume a Normal distribution with a standard deviation of $30 billion. Is there enough evidence at an 8% level of significance to support the researcher’s claim?

178

30

91

44

35

61

56

46

20

32

41

38

36

15

25

31

30

19

19

19

24

16

15

15

19

122

28

28

20

27

29

16

16

19

15

25

25

18

14

15

24

23

17

17

22

22

21

20

17

20

  1. Identify the proper Test or Confidence interval:
  1. Complete the Test or Confidence Interval.

In: Statistics and Probability

PART I Demand and supply of office visits with cardiologists in Fairfax (market period: 1 week)...

PART I

Demand and supply of office visits with cardiologists in Fairfax (market period: 1 week)

Assume no insurance

Price                           Demand                                  Supply

140                              1000                                        1375                                       

130                              1100                                        1350

120                              1200                                        1325

110                              1300                                        1300

100                              1400                                        1275

90                              1500                                        1250

80                              1600                                        1225

70                              1700                                        1200

60                              1800                                        1175

50                              1900                                        1150   

  1. Graph demand (D1) and supply (S1) and determine the market price/quantity equilibrium. (use the graph at the end of the assignment, or if you use another be sure to use one with a grid so you can plot accurately. Be sure to label all demand and supply curves).
  1. Over the next 5 years due to population growth and an aging population, demand for cardiology office visits increases by 25 percent. The supply of cardiologists increases by 10 percent as medical schools expand a little and a small number of additional doctors from foreign countries are certified to practice in the U.S. Graph the new demand curve (D2) and the new supply curve (S2). What is the new price/quantity equilibrium?

3. What was the percentage increase in the price of cardiology office visits over this five year period? Show your work

4. What was the percentage increase in the quantity of office visits? Show your work

5. Based on the demand schedule shown above (D1), calculate the Price Elasticity of Demand between a price per office visit of $80 and $90. Use the midpoint formula as shown in class or the arc elasticity formula as shown in the textbook. Show your work.   

6. Based on your answer in #4, would you expect prices to trend upwards or downwards between a price of $80 and $90 if individual doctors have some control over setting their own prices. Explain in brief.

7. Based on the demand schedule shown above, calculate the Price Elasticity of Demand between a price per office visit of $120 and $130. Show your work.

8. In one sentence describe what your answer means. Be specific. (imagine that you have to describe it to someone who does not know economics)

9. Why is there a different elasticity coefficient at a higher price compared to the lower price, even though the demand curve is a straight line? (Think about how we calculate elasticity).    

10. If the price elasticity of demand for milk is 3.2 between a price of $3.00 and $3.50, and if consumers are now buying 1000 gallons per day at a price of $3.25, how many gallons of milk will be bought per day if the price goes down to $3.00?

In: Economics

a) $200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October...

a) $200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price of 105-20 (this is the clean price) with a yield to maturity of 7.083% with the bond originally being issued at 11/15/1977. Face value per unit is $1,000.

i) Calculate the clean price of the bond issue

ii) Calculate the accrued interest of the bond issue

iii) Calculate the full price of the bond issue

b) $200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price (clean price) with a yield to maturity of 7.083% with the bond originally being issued at 11/15/1977. Calculate the full price (per unit of the bond). Note: On a per unit basis, the answers to(a)and(b)should be the same.Anydifferencemustbe due to rounding error only.

In: Finance