Maverick company is a publicly-traded company, with 20 million shares trading at $ 70 a share and $ 600 million in debt (market value as well as book value) outstanding. The firm derives 70% of its value from cloud storage and hosting, and the remaining 30% from technical service. The un-levered beta is 0.8 for firms in the cloud business and 1.2 for firms in the technical service business. Maverick company is rated A and can borrow money at 5%. The risk-free rate is 2% and the market risk premium is 8%; the corporate tax rate is 30%, and the firm has a capital gains tax rate of 20%

1. Estimate the cost of capital for Maverick Company.

1. A 3-phase, 20 kVA, 208 V, 4-pole Y-connected synchronous generator has a synchronous reactance of X_s = 1.5 W per phase. The resistance of the stator winding is negligible. The machine is connected to a 3-phase 208 V infinite bus. Neglect losses.

1. The field current and the mechanical input power are adjusted so that the synchronous machine delivers 10 kW at 0.8 lagging power factor. Determine the excitation voltage E_f and the power angle d.
2. The mechanical input power is kept constant but the field current is adjusted to make the power factor unity. Determine the percent change in the field current with respect to its value in part (a).

Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 5%, and the market’s average return was 13%. Performance is measured using an index model regression on excess returns. Stock A Stock B Index model regression estimates 1% + 1.2(rM − rf) 2% + 0.8(rM − rf) R-square 0.605 0.451 Residual standard deviation, σ(e) 10.8% 19.6% Standard deviation of excess returns 22.1% 25.9% a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.) b. Which stock is the best choice under the following circumstances?

Kris Kringle Company has one employee who is paid a salary of $8,000 per month. Federal income tax withheld was $220. State income tax withheld was $60.The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45%. The federal unemployment (FUTA) tax rate is 0.8% on the first $7,000 of wages. The state unemployment (SUTA) tax rate is 5.4% on the first $7,000 of wages. In addition, $590 of medical insurance was withheld from the employees pay.

Prepare Kringle’s journal entry to record the first month’s salary expense. Round to the nearest cent.

Prepare Kringle’s journal entry to record the employer’s payroll taxes for the first week’s payroll.

Bona Foodie Company has one employee who is paid a salary of $10,000 per month. Payroll information for the first month of the year is:

Part I: Prepare Bona Foodie Company’s journal entry to record the first month’s salary expense and employee withholdings. Payroll tax expense will be recorded in part 2.

Part 2: Prepare Bona Foodie Company’s journal entry to record employer payroll taxes for the first month’s payroll.

Q1. A station supplies 250 kVA at a lagging power factor (p.f) of 0·8. A synchronous motor is connected
in parallel with the load. If the combined load is 250 kW with a lagging p.f. of 0.9, determine :
(i) the leading kVAR taken by the motor.
(ii) kVA rating of the motor.
(iii) p.f. at which the motor operates.

Q2. A factory consists of the following
(i) An induction motor of 150 h.p with 0.7 p.f lagging and 80% efficiency.
(ii) A synchronous motor of 100 h.p with 0.85 p.f leading at 90% efficiency.
(iii) A lightning load of 50kW.
Find the annual electric charges if the tariff is Rs 100 per annum per kVA maximum demand plus 7
paise per kWh ; assuming the load to be steady throughout the year.

In a semiconductor manufacturing process, 3 wafers from a lot are tested. Each wafer is classified as pass or fail (binomial). Assume that the probability that a wafer passes the test is 0.7 and that the wafers are independent.

a. Fill in the table. Round answers to three decimal places (i.e. 0.123)

b. What is the mean? Round answer to one decimal place (i.e. 1.2) Answer

c. What is the standard deviation? Round answer to three decimal places (i.e. 0.123)Answer

d. What is the probability of X > 1? Round answer to three decimal places

1.An individual has $15,000 invested in a stock with a beta of 0.5 and another $50,000 invested in a stock with a beta of 1.6. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

According to a study conducted by ABODO, about 70% of all college students use an online dating app. Suppose you want to know if Harvard students are similar to their national peers. You ask a random sample of 125 Harvard students and find that 78 of them use an online dating app.

a. Does this sample provide significant evidence at the ? = .05 level that the true proportion of Harvard students that use an online dating app is different than the ABODO estimate? Conduct a hypothesis test to justify your answer.

b. Give an interpretation in context for the p-value that you calculated in part a.

c. Your colleague constructed a confidence interval based on your sample and found that it didn’t include 0.7. Give an example of a confidence level they might have used. Justify your answer.

Suppose you have $150,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 3% during the year. However, the actual inflation rate for the year is 6%.

1. Calculate the impact of inflation on the bank term deposit you have.

ii. Examine the effects of inflation in your city of residence with attention to food and accommodation expenses.

iii. The Australian Bureau of Statistics (ABS) reported in May 2016 that the civilian population in Australia over 15 years of age was 19.8 million. Of this population of 19.8 million Australians, 12.5 million were employed and 0.7 million were unemployed. Calculate Australia’s labor force and the number of people in the civilian population who were not in the labor force?

State whether the following statements are true, false or uncertain and briefly explain the reason for your choice. Your grade will largely depend on the quality of your explanations.

1. If a 1 percent increase in price leads to a 0.7 percent increase in quantity supplied, the short‑run supply curve is inelastic.
2. If the market for bottled spring water is characterized by a very elastic supply curve and a very inelastic demand curve, an outward shift in the supply curve would be reflected primarily in the form of lower prices.
3. Firms in long‑run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves because firms maximize profits and free entry implies that maximum profits will be zero.
4. In the very short run price and quantity supplied are absolutely fixed.