A company is projected to generate free cash flows of $47 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 11.2%. It has $24 million worth of debt and $6 million of cash. There are 14 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 14, what's your estimate of the company's stock price? Round to one decimal place.

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 49 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.1 pounds, what is the probability that the sample mean will be each of the following?

Appendix A Statistical Tables
a. More than 61 pounds
b. More than 57 pounds
c. Between 55 and 58 pounds
d. Less than 55 pounds
e. Less than 48 pound

.2. The price of a stock is $40. The price of a one-year European put option on the stock with a strike price of $30 is quoted as $7 and the price of a one-year European call option on the stock with a strike price of $50 is quoted as $5. Suppose that an investor buys 100 shares, shorts 100 call options, and buys 100 put options.

Draw a diagram illustrating how the investor’s profit or loss varies with the stock price over the next year. How does your answer change if the investor buys 100 shares, shorts 200 call options, and buys 200 put options?

You buy a 20-year bond with a coupon rate of 9.6% that has a yield to maturity of 10.6%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 11.6%. What is your return over the 6 months?

Many of the topics we touched upon this year are well established ethical questions that the public has debated for many years. Reading deals with a much newer ethical dilemma -- genetic engineering. Recently it has become much more frequent to see stories of scientists working on changing our genetic make up, Questions about some uses of genetic engineering, by Jonathan Glover focuses on both the ethical dilemma as well as the positive gains that can come from it.

Please post a reflection on the readings.

5. Assume that the economy has been growing at 2 % per year. You are an economist working at a Central Bank and need to establish what are the long-run effects of increasing the growth of the money supply to 10 % per year. State and then explain the long-run effects of this change on each of the following (give numerical estimates when possible): a) The annual rate of inflation b) The real interest rate c) The nominal interest rate

A survey of several 10 to 12 year olds recorded the following amounts spent on a trip to the mall: $14.73,$18.13,$11.20,$14.89,$18.78,$21.08,$17.26 Construct the 99% confidence interval for the average amount spent by 10 to 12 year olds on a trip to the mall. Assume the population is approximately normal.

Step 1 of 4 : Calculate the sample mean for the given sample data. Round your answer to two decimal places.

Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 75,800 units of product: Net sales $1,455,360; total costs and expenses $1,754,400; and net loss $299,040. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,206,500 $782,900 $423,600 Selling expenses 426,000 79,600 346,400 Administrative expenses 121,900 50,900 71,000 $1,754,400 $913,400 $841,000 Management is considering the following independent alternatives for 2014. 1. Increase unit selling price 28% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $198,500 to total salaries of $39,900 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50.

I) Calculate the break even point for 2014.

II) Compute the break even point in dollars under each of the alternative courses of action.

A. Increasing selling price

B. Change in compensation

C. Purchase new machinery

Suppose a​ ten-year, $ 1,000 bond with an 8.7 % coupon rate and semiannual coupons is trading for $ 1,035.04.

a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?

b. If the​ bond's yield to maturity changes to 9.1 % ​APR, what will be the​ bond's price?

Yakahoma Corp has 80.000 common stocks. At the end of a profitable year it decides to pay $2 cash dividend and 5 percent stock dividend. Current stock price is $12. How much will retained earnings reduce after cash and stock dividends distributed? *