Suppose that you sell short 200 shares of Xtel, currently selling for $50 per share, and give your broker $6,000 to establish your margin account.

a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $56; (ii) $50; (iii) $45? Assume that Xtel pays no dividends.

b. If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call?

c. Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $1 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid.

Margin call will be made at price ___________ or higher  

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $2,000,000 and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $600,000 per year for 4 years. Assume the tax rate is 34 percent. You can borrow at 8 percent before taxes.

What is after tax cost of lease payment? What is the annual depreciation tax shield? What is the annual operating cash flow from leasing? What is the after tax cost of debt? What is the net advantage to leasing (NAL) from your company's standpoint?

Juan is leasing a new car. The price of the car is 35,000. The terms of
the lease go as follows. There are 120 monthly payments with the first payment
being one month from now. The nominal rate of interest is 8.4% convertible
monthly. The payments in the first year are X. In the second year, the payments
are 1.01X, in the third 1.01 X^2 and so on. Just after his 60th payment, Juan
sells his car for Y dollars. Before Juan receives a check, he first must pay off the outstanding loan balance still owed just after his 60th payment to the lender.
What is the smallest value of Y such that Juanís check is at least 20000?

(a) 15,000-15,500
(b) 23,500-24,000
(c) 34,500-35,000
(d) 41,500-42,000
(e) 44,000-44,500

A academic adviser wants to assess whether her remedial training has been effective for her five students. She decides to conduct a related samples t-test and records the following grades for students prior to and after receiving her training.

(a) Test whether or not her tutoring is effective at a 0.05 level of significance. State the value of the test statistic. (Round your answer to three decimal places.)
t =

State the decision to retain or reject the null hypothesis.

Retain the null hypothesis.Reject the null hypothesis.    

(b) Compute effect size using estimated Cohen's d. (Round your answer to two decimal places.)
d =

Down Under Boomerang, Inc., is considering a new 7-year project that requires an initial investment in a fixed asset of $2.376 million. The fixed asset will be depreciated straight-line to zero over its 7-year life. After Year 0, the project is expected to generate $2,112,000 in annual sales per year, with operating costs of $844,800 per year. The tax rate is 34 percent and the appropriate discount rate is 9 percent. The project requires an increase in net working capital of $264,000 in Year 0. Net working capital will not change after Year 0 until the last year of the project, at which time net working capital will be completely recovered. The fixed asset will have a salvage value (before-tax) of $184,800 in the last year of the project.

What is the NPV of the project?

Hudson contracted with Ripley to install solar panels on her boat. The installation went well, seemingly. Unfortunately, two days after the installation the panels stopped working. Ripley claimed that the problem was Hudson's fault, and demanded that he make the system work; Hudson denied responsibility. Ripley had paid Hudson by properly executed check, and Hudson still had not deposited the check at the time of Ripley's demand. The day after receiving the demand, Hudson negotiated the apparently-regular, unaltered check to Bishop. Hudson suspected that Ripley's claim was valid and was glad to have negotiated the check before Ripley dishonored it. Bishop sought payment from Ripley for the check. Ripley refused to pay. Bishop sues at a time within the applicable statute of limitations. In what two circumstances will Ripley win?

Mr. Brown the CEO of a corporate company wants to know if a new method of rewarding employees influences morale. He gives 12 employees an anonymous survey measuring morale, implements the new method, and then measures morale again after four weeks.

a. State the null and alternative hypotheses

b. State the rejection region

c. Conduct a sign test on the above data

d. What can you conclude?

Please summarize or rewrite the following passage in at least 200 words

A display system in which subsequent failures of plant equipment and plant systems are predicted to occur and in which the probability of failure before a specified date and the probability of failure after a specified date is determined and displayed and in which the calendar date is determined and displayed when the desired probability that the equipment not fail prior to the calendar date is specified. The system includes an Equipment Failure And Degradation Module that determines the remaining equipment/system life; a Probability-of-Failure Predictor Module that determines the probability of the equipment/system failing prior to a specified date and the probability of the equipment/system failing after a specified date; and a Date-of-Failure Predictor Module that determines the calendar date that corresponds to a specified probability that equipment not fail prior to the date.

Perry P. (the logistics manager for the Company PTP) is woken by a phone call in the middle of the night because one of the ships carrying 5 containers of light bulbs just sank after hitting some ice in the northern pacific ocean. The crew made it out alive in the new unsinkable life boats, and have been picked up by the Coast Guard. Talk about the risks that this points out. Talk about costs involved and by whom and how they are incurred. What kinds of reaction plans would you try to put in place after the fact, and what strategies would have helped before?

Value of inventory in a container= $500,000 =1,000,000 lightbulbs

5 containers per ship,

30 days of supply transit time.

Factory has 900 workers a day, at an average wage of $25 an hour.

A 20kW rated motor has an average loading of 75% of rated power and has an efficiency of 80%. The motor has a peak loading of 100% of rated power. The motor operates 1000 hours a year. The cost of electricity is $0.10/kWh and $7/kW-month of demand. Assume the motor operates at periods of peak demand at the facility (i.e. the motor power impacts the billing demand). An energy efficiency upgrade reduces the average power consumed to an average loading of 50% of rated power and reduces the peak power to 75% of rated power, but increases the operating hours to 1500 hours per year. There is no change in the efficiency of the motor after the upgrade. The cost of the energy efficiency project is $10,000. What is the annual electricity cost of running the motor before and after the energy efficiency upgrade? What is the simple payback of the project?