consider the following returns. The Correlation between Stock X's and Stock Z's returns is closest to: Year End Stock X Realized Return Stock Y Realized Return Stock Z Realized Return 2004 20.1% -14.6% 0.2% 2005 72.7% 4.3% -3.2% 2006 -25.7% -58.1% -27.0% 2007 56.9% 71.1% 27.9% 2008 6.7% 17.3% -5.1% 2009 17.9% 0.9% -11.3% 0.71 0.60 0.62 0.05

Brown Inc.​'s annual dividends are indicated below. Find the required rate of return for this​ stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon. Assume the January​ 1, 2011 price of the stock was $39.00. What was the required return for Brown Inc.Brown Inc.​'s stock?

What was the estimated annual required return for Brown Inc.​'s ​stock? ​(Round to two decimal​ places.)

All Time Box Office Revenues Aggregated by Months

1. Calculate the mean for the gross revenues.
2. Calculate the mean for the Movies tracked.
3. Calculate the standard deviation for the movies tracked.

3. Your investment banking client Uber is about to go public. You have gathered the following information concerning comparable companies whose stock is publicly traded:

IPO Pricing

1. Calculate the average values for each multiple.
2. Using these average multiples estimate the implied price for Uber’s shares assuming Uber’s earnings per share are $0.50, cash flow per share are $1.00, revenue per share is $4.90, and book value per share is $7.10.
3. Assuming all five companies are equally reliable comparables, estimate a fair value for Uber’s shares assuming they are trading in the market.
4. Deduct a 10% discount from this [freely traded] price to arrive at a price for Uber’s IPO. What is the purpose behind the 10% discount?

1. A Six Sigma project needs initial investment of $20,000 at July 2003, which includes training fee, consulting fee and other expenses. The costs and benefits of this project is listed in the following table:

If the capital cost within company is i=10% per year.

1. By using NPV, is this project worthwhile?
2. What is the project’s IRR?
3. What is this project’s payback period (in month)?
   
   
   Show all work

Year # Cool Ranch Price of Cool Ranch # Nacho Cheesier Price of Nacho Cheesier 2005 10 $5 20 $5 2006 15 $4 20 $6 Suppose the nation of El Dorito produces only two products, Cool Ranch and Nacho Cheesier. The prices and quantities are shown for two years above. What was nominal GDP in 2005? It was Blank 1. Fill in the blank, read surrounding text. . What was nominal GDP in 2006? It was Blank 2. Fill in the blank, read surrounding text. . Now determine what Real GDP was in 2005 using 2006 dollars. It was Blank 3. Fill in the blank, read surrounding text. . Just for fun, figure out what Real GDP was in 2006 using 2005 as the base year. Blank 4. Fill in the blank, read surrounding text. . Now if we use 2005 for the base year again, what is the GDP deflator for 2006? Blank 5. Fill in the blank, read surrounding text. Use at least two decimal places!

Please type your answer, thank you.

Google became a publicly-traded company in August 2004. Initially, the stock traded over 10 million shares each day! Since the initial offering, the volume of stock traded daily has decreased substantially. In 2010, the mean daily volume in Google stock was 5.44 million shares, according to Yahoo! Finance. A random sample of 35 trading days in 2014 resulted in a sample mean of 3.28 million shares with a standard deviation of 1.68 million shares. Does the evidence suggest that the volume of Google stock has changed since 2007? Use a 0.05 level of significance.

1. State the null and alternative hypotheses.
2. What type of hypothesis test is to be used?
3. What distribution should be used and why?
4. Is this a right, left, or two-tailed test?
5. Compute the test statistic.
6. Compute the p-value.
7. Do you reject or not reject the null hypothesis? Explain why.
8. What do you conclude?

Hallstead Jewelers What have we done? Daddy would know what to do, but I don't. I really thought growing this business would be an easy thing for us, but now I am not so sure. All of the work that we did in 2005 was supposed to set us up for new success, profits, and a bright future. But now, we are showing losses on both the historical investment and on our modernization and expansion. Gretchen Reeves was talking in early February 2007 with her sister and partner Michaela Hurd after receiving preliminary income statements for Halstead Jewelers for fiscal year 2006 which had ended January 31, 2007 (See Exhibit 1). In a new building, just renovated in 2005, with 50% more space and selling staff than ever before, the business had experienced a loss almost double the income of the last "normal" year, 2004. To Gretchen, this did not bode well for the future. The sisters' grandfather established Hallstead Jewelers 83 years earlier in the largest city in the tri-state region. For more than 50 years, until his death, he had nurtured and grown the original store from a start up to one of the largest jewelry and gift stores in the United States. Four departments sold almost everything that customers expected in a jewelry and gift store: fine jewelry and gems, watches, tabletop gifts (china and flatware), and artistic gifts. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead's had an extra cache attached to it. It was presumed to be the best. When Grandfather died, the store was left to his only son, who had literally grown up in the store to become his father's partner in the business. That son was the father of both Gretchen and Michaela. Another child, their brother James, had shunned the business to study medicine and surgery. The girls, however, followed in their father's footsteps and grew up in the store, learning the business. At the death of their father in 2002, the three children inherited the business as equal partners, and by agreement with James, Gretchen and Michaela took over the management of the business and store. At the time of the sisters' assumption of the ownership and management of the store, it was still operating in the original store location on Lake Avenue and Second Avenue. In the late 1930's, Lake Avenue became the most important retail location in the city. The store was improved and provided elegant space for the display and sale of their products. It was a destination-shopping place. The store was remodeled and redecorated again after the founder died, but the location and space remained the same until 2004.

In the meantime, the principal retail shopping areas shifted two blocks west to Washington Street. Stores were larger there and could accommodate department stores and larger specialty retailers. But reputation and selection still brought customers to Lake Avenue for the selections at Hallstead's. Shopping centers were developed in suburban locations, but Hallstead Jewelers stayed put. The sisters’ father saw the changes in the retail landscape, but he took no action because of them. Hallstead's was a one-store seller at its original location, in many ways an anachronism. By the time the sisters assumed management, there were signs that it might be time for changes. Sales had been stagnant since 1999 or so, and profits were slipping. One of the sisters' first ideas was to look for another or several locations. A consultant said that they needed more space and a fresh store look. Expansion was impossible without moving, and although a move might entail some risk, he recommended that they look toward a larger location on Washington Street. They made some changes in product offerings that offered more sales potential at the cost of minor reductions in margins. In 2004 a large toy seller with more space abandoned the corner of Washington Street and Second Avenue. The sisters wasted no time in signing a new five-year lease and starting extensive and expensive renovations. Since the new store was only two blocks from the original location, Gretchen and Michaela were confident that their loyal customers would find and follow them. Renovations and moving took most of 2005, and they started 2006 in the new store. They laughed about 2005 being a "lost" and "loss" year, but they were sure 2006 would bring a new day to Hallstead's. The retail jewelry business was changing. Tiffany & Company, a business with an origin much like Hallstead Jewelers, had grown into an international powerhouse. With their "blue boxes" they had become the largest diamond seller in the United States. At the same time, a start- up internet seller named Blue Nile, founded in the infancy of the World Wide Web a decade earlier was the second largest diamond seller in the United States. The sisters had not had time to think about what those trends meant for Hallstead's. But as fiscal 2006 ended and the preliminary income statement was in, both Gretchen and Michaela knew something more had to be done. They wanted to figure out what had happened between 2004 and 2006, and they wanted to explore ideas about changes in strategy that would return the business to profitability and a brighter future. Their accountant suggested that the move to a new location had changed the economics of their business somewhat, and that further changes in promotion might be in order. Increasing advertising might bring in more customers, or changing pricing formulas to fend off new internet jewelry competitors might be considered. The sisters put together some questions that they asked the accountant to analyze for them using some additional operating statistics that they had at hand (Exhibit 2).

Exhibit 1 Hallstead Jewelers; Income Statements for Years Ended January 31 (thousands of dollars) 2003 2004 2006 Sales $8,583 $8,102 $10,711 Cost of goods sold 4,326 4,132 5,570 Gross margin $4,257 $3,970 $ 5,141 Expenses Selling expense Salaries 2,021 2,081 3,215 Commissions 429 405 536 Advertising 254 250 257 Administrative expenses 418 425 435 Rent 420 420 840 Depreciation 84 84 142 Miscellaneous expenses 53 93 122 Total expenses $3,679 $3,758 $ 5,547 Net income $ 578 $ 212 $ (406)

Exhibit 2 Hallstead Jewelers Operating Statistics 2003 2004 2006 Sales space (square feet) 10,230 10,230 15,280 Sales per square foot $ 839 $ 792 $ 701 Sales tickets 5,341 5,316 6,897 Average sales ticket $ 1,607 $ 1,524 $ 1,553.

1. Prepare the breakeven point for the years 2003, 2004 and 2006. Calculate the Margin of Safety for each of the years?

2. The following proposals are included the discussion questions of the case (refer to questions 2, 3 and 4 for more details):

a. The Consultant: Reduce price to increase traffic. Reduction in price of 10% will bring the number of tickets to 7,500.   

b. Gretchen: Eliminate sales commission.

c. Michaela: Increase Advertising by $200,000.

For each proposal, calculate operating income and breakeven point.

3. Based on your overall analysis, what market strategies should Hallstead Jewelers adopt? What combination, if any, of the proposals should they consider? Reminder, you cannot assume that they can magically go back to how things were on 2004.

4. What other non-financial business aspects should Hallstead Jewelers consider as part of their strategy for 2007?

1 - What is the objective of an audit? For whom is an audit of a publicly-traded company primarily conducted? Who else might use the audit report of a publicly-traded company? Explain.

2 - What is an audit trail? Why might an auditor need to alter audit procedures in the audit trail is computerized?

Can you answer these two question

You have the following historical annual total returns on Terlingua Oil & Gas Exploration:

Calculate the sample standard deviation of annual return.

Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol.