Filer Manufacturing has 7 million shares of common stock outstanding. The current share price is $73, and the book value per share is $8. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $75 million, has a 8 percent coupon, and sells for 98 percent of par. The second issue has a face value of $55 million, has a 9 percent coupon, and sells for 107 percent of par. The first issue matures in 23 years, the second in 7 years.

The most recent dividend was $4.5 and the dividend growth rate is 8 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 30 percent.

Required: What is the company's WACC? (Do not round your intermediate calculations.)

A 12.79%

B 8.19%

C 7.69%

D 15.88%

E 7.94%

Please show work

Four brands of light bulbs are being considered for use in the final assembly area of the Ford F-150 truck plant in Dearborn, Michigan. The director of purchasing asked for samples of 100 from each manufacturer. The numbers of acceptable and unacceptable bulbs from each manufacturer are shown below. At the 0.05 significance level, is there a difference in the quality of the bulbs? (Round your answers to 3 decimal places.) Manufacturer A B C D Unacceptable 19 13 19 10 Acceptable 81 87 81 90 Total 100 100 100 100

Two firms, A and B, produce complementary products. That is, rather than competing for the same customers, demand for each firm’s output increases if the other firm produces more. Specifically, the inverse demand for Firm A’s product is given by pA = 110 − qA + qB. The inverse demand for Firm B’s product is given by pB = 50 − qB + qA. Both firms have marginal cost of 10 and choose quantities to maximize their profit. 5. If the firms make their decisions simultaneously (Cournot), what are the Nash Equilibrium quantities (q N A , q N B ) that the firms will choose to maximize profits? (a) q N A = 60 and q N B = 60 (b) q N A = 80 and q N B = 60 2 (c) q N A = 60 and q N B = 80 (d) q N A = 80 and q N B = 80 6. Again assume that the firms make their decisions simultaneously (Cournot). Denote by p N A and p N B the prices for firms A and B, respectively, assuming that the firms set their quantities as in the correct answer to the previous question. What are the values of p N A and p N B ? (a) p N A = 80, p N B = 60 (b) p N A = 100, p N B = 40 (c) p N A = 60, p N B = 80 (d) p N A = 90, p N B = 70 7. Suppose now that the firms make their decision sequentially (Stackelberg). Specifically Firm A is the first to make a decision and choose the quantity that maximizes its profits. After observing Firm A’s decision, firm B chooses the quantity to maximize its own profits. Solving the game by backwards induction, find the quantities set by firms A and B (q S A and q S B, respectively) in the Subgame Perfect Nash Equilibrium of this game. Also, find the prices that hold for each firm (p S A and p S B for firms A and B, respectively) in this equilibrium. (a) q S A = 120, p S A = 70, q S B = 80, p S B = 90 (b) q S A = 100, p S A = 80, q S B = 90, p S B = 70 (c) q S A = 95, p S A = 105, q S B = 90, p S B = 55 (d) q S A = 90, p S A = 100, q S B = 70, p S B = 60 8. Suppose instead that the order of the Stackelberg game changes, so that Firm B is the first to make a decision and choose the quantity that maximizes its profits. After observing firm B’s decision, Firm A will choose the quantity to maximize its profits. Find the quantities set by firms A and B (q S A and q S B, respectively) in the Subgame Perfect Nash Equilibrium of this game. Also, find the prices that hold for each firm (p S A and p S B for firms A and B, respectively) in this equilibrium. (a) q S A = 120, p S A = 70, q S B = 80, p S B = 90 (b) q S A = 100, p S A = 80, q S B = 90, p S B = 70 (c) q S A = 95, p S A = 105, q S B = 90, p S B = 55 3 (d) q S A = 90, p S A = 100, q S B = 70, p S B = 60 9. Which of the following statements is true when comparing the Cournot (simultaneous) case in questions 5 and 6 with the the Stackelberg (sequential) cases in questions 7 and 8? (a) Firm A’s profit is higher in the Stackelberg case than in the Cournot case, regardless of the order the firms move. (b) Firm A’s profit is higher in the Stackelberg case than in the Cournot case, but only if it is the second mover. (c) Firm A’s profit is always higher in the Cournot case than in the Stackelberg case. (d) Firm A’s profit is higher in the Stackelberg case than in the Cournot case, but only if it is the first mover.

DISCUSSION BOARD FORUM 1/PROJECT 2 INSTRUCTIONS Standard Deviation and Outliers Thread:

For this assignment, you will use the Project 2 Excel Spreadsheet to answer the questions below. In each question, use the spreadsheet to create the graphs as described and then answer the question. Put all of your answers into a thread posted in Discussion Board Forum 1/Project 2. This course utilizes the Post-First feature in all Discussion Board Forums. This means you will only be able to read and interact with your classmates’ threads after you have submitted your thread in response to the provided prompt. For additional information on Post-First, click here for a tutorial. This is intentional. You must use your own work for answers to Questions 1–5. If something happens that leads you to want to make a second post for any of your answers to Questions 1–5, you must get permission from your instructor.

1. A. Create a set of 5 points that are very close together and record the standard deviation. Next, add a sixth point that is far away from the original 5 and record the new standard deviation. What is the impact of the new point on the standard deviation? Do not just give a numerical value for the change. Explain in sentence form what happened to the standard deviation.

B. Create a data set with 8 points in it that has a mean of approximately 10 and a standard deviation of approximately 1. Use the second chart to create a second data set with 8 points that has a mean of approximately 10 and a standard deviation of approximately 4. What did you do differently to create the data set with the larger standard deviation?

2. Go back to the spreadsheet and clear the data values from Question 1 from the data column and then put values matching the following data set into the data column for the first graph. 50, 50, 50, 50, 50. Notice that the standard deviation is 0. Explain why the standard deviation for this one is zero. Do not show the calculation. Explain in words why the standard deviation is zero when all of the points are the same. If you don’t know why, try doing the calculation by hand to see what is happening. If that does not make it clear, try doing a little research on standard deviation and see what it is measuring and then look again at the data set for this question.

3. Go back to the spreadsheet one last time and put each of the following three data sets into one of the graphs. Record what the standard deviation is for each data set and answer the questions below. Data set 1: 0, 0, 0, 100, 100, 100 Data set 2: 0, 20, 40, 60, 80, 100 Data set 3: 0, 40, 45, 55, 60, 100 Note that all three data sets have a median of 50. Notice how spread out the points are in each data set and compare this to the standard deviations for the data sets. Describe the relationship you see between the amount of spread and the size of the standard deviation and explain why this connection exists. Do not give your calculations in your answer—explain in sentence form. For the last 2 questions, use the Project 1 Data Set. 4. Explain what an outlier is. Then, if there are any outliers in the Project 1 Data Set, what are they? If there are no outliers, say no outliers.

5. Which 4 states have temperatures that look to be the most questionable or the most unrealistic to you? Explain why you selected these 4 states. For each state, give both the name and the temperature. Replies: After you have submitted your thread, you will be able to see your classmates’ threads. Find 2 classmates who disagreed with at least some part of your answers to Questions 4 and 5 and explain why your answers are correct. If you change your mind about your answers for Questions 4 and 5, explain what you were thinking originally as well as what you think now and why. Replies must be at least 50 words each. Submit your thread by 11:59 p.m. (ET) on Saturday of Module/Week 3. Submit your replies to 2 classmates’ threads by 11:59 p.m. (ET) on Monday of the same module/week.

Utilization of a Constraint

Flying High only has so much space on the plane for seating.  The airline can charge $900 for a first class ticket while it can only charge $300 for an economy ticket.  The contribution margin on each are $600 and $150 respectively.  The big difference is that a first class seat takes up 30 square feet while an economy seat only takes up 12 square feet.  If the airline has only 1,650 square feet for seating and a demand of 35 first class tickets and 90 economy seats, how many of each type of seat should they design in the plane?

Sell or Process Further

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:

Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:

What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? AND Based on your analysis, which product or products should be sold at the split-off point and which product or products should be processed further?

Zephyr Minerals completed the following transactions involving machinery.

     Machine No. 1550 was purchased for cash on April 1, 2017, at an installed cost of $58,000. Its useful life was estimated to be six years with a $4,000 trade-in value. Straight-line depreciation was recorded for the machine at the ends of 2017, 2018, and 2019. On March 29, 2020, it was traded for Machine No. 1795, with an installed cash price of $66,000. A trade-in allowance of $30,610 was received for Machine No. 1550, and the balance was paid in cash. The fair values of Machine No. 1550 and Machine No. 1795 could not be determined.

     Machine No. 1795’s life was predicted to be four years with a trade-in value of $8,600. Double declining-balance depreciation on this machine was recorded each December 31. On October 2, 2021, it was traded for Machine No. BT-311, which had an installed cash price of $487,000, the machine’s fair value. A trade-in allowance of $10,000 was received for Machine No. 1795, and the balance was paid in cash.

     It was estimated that Machine No. BT-311 would produce 200,000 units of product during its five year useful life, after which it would have a $15,000 trade-in value. Units-of-production depreciation was recorded for the machine for 2021, a period in which it produced 28,000 units of product. Between January 1, 2022, and August 21, 2024, the machine produced 103,000 more units. On August 21, 2024, it was sold for $81,600.

Required:
Prepare journal entries to record: (Round intermediate calculations to the nearest whole dollar.)

a. The depreciation expense recorded to the nearest whole month on the first December 31 of each machine’s life. (Round the final answers to the nearest whole dollar. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

b. The purchase/exchange/disposal of each machine. (Round the final answers to the nearest whole dollar. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

1. One of the biggest news stories of the past few months is the outbreak of COVID-19 (novel coronavirus), first in China and then throughout the world. Numerous pharmaceutical companies have begun to develop COVID-19 vaccines. If all goes well, it will be at least a year before a vaccine is developed, tested, and approved by the FDA. However, one company—Moderna Therapeutics—has beaten all of the other companies in the race so far and is the first to advance to Phase 1 clinical trials.

Suppose that Moderna is the first company to gain approval for a COVID-19 vaccine in the United States. The monthly demand for COVID-19 vaccines in the U.S. is Q = 16 – (P/6) where Q is measured in millions of vials and P is measured in dollars. Moderna’s total cost of producing Q vials of vaccine is 2Q² and Moderna’s marginal cost is 4Q.

1.A As the only company allowed to sell COVID-19 vaccines in the U.S., what price would Moderna charge for its vaccine to maximize profit? How many vials of vaccine would Moderna sell each month? What are Moderna’s monthly profits from the sale of COVID-19 vaccine?

1.B How many vials of vaccine would be produced and what price per vial would be charged if this were a perfectly competitive market?

1.C (Vaccines, like the COVID-19 vaccine being developed by Moderna, provide benefits beyond the benefits received by those vaccinated. For instance, as more people are vaccinated, the odds of disease transmission to vulnerable groups who cannot be vaccinated (e.g., infants) are reduced. Suppose the marginal social benefit of the COVID-19 vaccine is 110 – 6Q, which is greater than the marginal private benefit. Given this, what role do you think the federal government should play in vaccine development, if any, beyond the determination of safety and effectiveness associated with vaccine approval?

A. Working at Music Best

You are planning a road trip and want to create a playlist of your favorite songs. Assume that the song titles are in an array of strings. Create a shuffle of your songs (permutation of your original songs). Use the Fisher-Yates shuffle algorithm that works in O(n) running time. We will use a method that creates pseudo-random numbers (see end for help) in O(1) running time. The basic idea is to start from the last element, swap it with a randomly selected element from the whole array (including last). In the next step, you will consider the array from 0 to n-2 (size reduced by1), and repeat the process until you reach the first element. Write a program that uses the provided Playlist.txt as input and outputs the shuffled array in a file called LastNameFirstNamePlaylist.txt. Follow the next pseudocode: To shuffle an array a of n elements (indices 0..n-1):

for i=n-1 down to 1 j= random integer with 0 <= j < i

exchange a[j] and a[i]

Count the time to read from the file, to shuffle the songs and to create the output. Note: To count the time use system.currentTimeMillis().

Create appropriate JUnits to test your program. Help with JUnits:

Instructions for developing JUnit:

• To compare two text files in Junit, you can try the following code. Use BufferedReader to read the input files.

BufferedReader Out=new BufferedReader (new FileReader (<Path of output file>));

BufferedReader In=new BufferedReader (new FileReader (<Path of input file>));

while ((expectedLine = In.readLine ()) != null) {

String actualLine = Out.readLine ();

assertEquals (expectedLine, actualLine);

}

• Set seed value as 20.

Random r=new Random();

r.setSeed(20);

Compare the output file with attached see next:

if you use nextDouble() use Target1.txt to compare

double d = random.nextDouble();

int j = (int)(d*arr.length);

else if you use nextInt() use Target2.txt

Programming Standards:

• Your header comment must describe what your program does.

• You must include a comment explaining the purpose of every variable or named constant you use in your program.

• You must use meaningful identifier names that suggest the meaning or purpose of the constant, variable, function, etc.

• Precede every major block of your code with a comment explaining its purpose. You don't have to describe how it works unless you do something tricky.

• You must use indentation and blank lines to make control structures more readable.

Deliverables:

Your main grade will be based on (a) how well your tests cover your own code, (b) how well your code does on your tests (create for all non-trivial methods), and (c) how well your code does on my tests (which you have to add to your test file). For JUnit tests check canvas.

Use cs146S19.<lastname>.project1 as your package, and Test classes should be your main java file, along with your JUnit java tests.

Do not use any fancy libraries. We should be able to compile it under standard installs. Include a readme file on how to compile the project.

***********************************************************************************************************************************************************************************************************

MY SOLUTION:

package RandomMusic;

import static org.junit.Assert.*;
import org.junit.Test;
import java.io.BufferedReader;
import java.io.File;
import java.io.FileReader;
import java.io.IOException;
import java.util.Random;

*playMusicTest.java

public class playMusicTest {

@Test
public void playMusictest() throws IOException
{
  
File file = new File("src\\RandomMusic\\Playlist.txt");
File file1 = new File("src\\RandomMusic\\Target1.txt");
// read input playlist
BufferedReader in = new BufferedReader(new FileReader(file));
// read output target
BufferedReader out = new BufferedReader(new FileReader(file1));
  
String[] playList = new String[459]; // create an array
int i=0; // element of array
String str;
  
// read content of Playlist.txt then copy the content to array
while((str = in.readLine())!=null)
{
playList[i] = str;
i++;
}
  
// random number
Random rand = new Random(0);
rand.setSeed(20);
  
// swap the chosing song.
for(int j = playList.length - 1;j>0;j--)
{
int index = rand.nextInt(j);
String tmp;
tmp = playList[index];
playList[index] = playList[j];
playList[j]= tmp;
}
  
// compare output of playlist = content of target file
for(int k=0; k<playList.length;k++)
{
String actualLine = out.readLine();
assertEquals(playList[k],actualLine);
  
}
  
}

}

*RandomMusic.java

package RandomMusic;

import java.io.File;
import java.io.BufferedReader;
import java.io.FileReader;
import java.util.Random;
import java.io.*;

public class RandomMusic {
  
String[] playList = new String[459]; // String of playList
int i = 0;
Random rand; // random
BufferedReader in; // read file
  
  
// Open a Text File
public void openFile() throws IOException
{
try {
File file = new File("src\\RandomMusic\\Playlist.txt");
in = new BufferedReader(new FileReader(file));
String str;
while((str = in.readLine())!=null)
{
playList[i] = str;
i++;
}
  
} catch(Exception e) {
System.out.println("Could not find the data file!");
}
  
}
  
// close File
public void closeFile() throws IOException
{
in.close();
  
}

// Swap song in playlist
public void swap(int index, int j)
{
String tmp;
tmp = playList[index];
playList[index] = playList[j];
playList[j]= tmp;
}
  
// Random song in playlist then swap if the song chose
public void playMusic()
{
rand = new Random();
for(int j = playList.length - 1;j>0;j--)
{
int index = rand.nextInt(j);
swap(index,j);
}
}
  
// print out playlist
public void printOut()
{
for(int j=0; j<playList.length;j++)
{
System.out.println(playList[j]);
}
}
  
// Main program
public static void main(String[] args) throws IOException
{
RandomMusic favorMusic = new RandomMusic(); // create RandomMusic
favorMusic.openFile(); // read file
favorMusic.playMusic(); // random music
favorMusic.printOut(); // print out playlist
favorMusic.closeFile(); // close file
}

}

*openFileTest

package RandomMusic;

import static org.junit.Assert.*;
import java.io.File;
import java.io.IOException;

import org.junit.Test;

// Check playlist file is exists
public class openFileTest {

@Test
public void openFiletest() throws IOException
{
File file = new File("src\\RandomMusic\\Playlist.txt");
assertTrue(file.exists());
}

  
}

************************************************

I am getting error in playMusicTest.java.... Please help.

Refer to the article. The demand for hand sanitizer at the moment would be considered __________ and as Prices rise Total Revenue would ___________

Select one:

a. Inelastic : Increase

b. Elastic : Decrease

c. Inelastic : Decrease

d. Elastic : Increase

Prices of hand sanitiser have increased by 120% and Quantity Supplied has risen by 80%. Therefore the price elasticity of supply is :;

Select one:

a. 1.5 elastic

b. 1.5 inelastic

c. 0.67 Elastic

d. 0.67 Inelastic

The article indicates that both demand and supply of hand sanitizer are rising but the Demand is rising by more. The effect on the market will be

Select one:

a. Price stays the same : Increase in Equilibrium Quantity

b. Increase in Price : Increase in Equilibrium Quantity

c. Increase in Price; Decrease in Equilibrium Quantity

d. Decrease in Price : Increase in Equilibrium Quantity

Markets are inefficient when

Select one:

a. when price reaches equilibrium

b. when the market over produces

c. when all the net benefits are captured

d. demand equals supply

If prices of hand sanitizer have risen by 150% and quantity supplied has increased by 100% calculate and explain the price elasticity of supply.

Select one:

a. PES = 0.67 and Supply is elastic

b. PES = 1.5 and Supply is elastic

c. PES = 0.67 and Supply is inelastic

d. PES = 1.5 and Supply is inelastic

The article mentions that the British Drug store chain, Boots were limiting customers to 2 hand sanitizers per purchase. This is due to the market experiencing a __________ which would normally cause prices to __________

Select one:

a. Surplus : Increase

b. Shortage : Increase

c. Shortage : Decrease

d. Surplus : Decrease

If your income rises by 45% and as a result you increase your quantity demanded for restaurant meals by 60% calculate and interpret the income elasticity of demand (YED).

Select one:

a. YED= -1.33 and the good is normal and a luxury

b. YED= 1.33 and the good is normal and income elastic

c. YED = 0.75 and the good is normal and income inelastic.

d. YED = 1.5 and the good is normal and Income elastic

Setting of a price floor above equilibrium results in __________ and setting of a price floor below equilibrium results in

Select one:

a. surplus ; shortage

b. surplus ; equilibrium

c. shortage ; equilibrium

d. equilibrium ; shortage

Cigarette smoking is an example of a

Select one:

a. positive production externality

b. positive consumption externality

c. negative production externality

d. negative consumption externality

Problem 8-26B Computing materials, labor, and fixed cost variances

Shaffer Corporation makes mouse pads for computer users. After the first year of operation, Peggy Shaffer, the president and chief executive officer, was eager to determine the efficiency of the company’s operation. In her analysis, she used the following standards provided by her assistant:

Shaffer purchased and used 460,000 square feet of material at an average cost of $0.96 per square foot. Labor usage amounted to 79,200 hours at an average of $19.60 per hour. Actual production amounted to 416,000 units. Actual fixed overhead costs amounted to $408,000. The company completed and sold all inventory for $3,400,000.

Required

a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.

b. Calculate the materials price and usage variances and indicate whether they are favorable (F) or unfavorable (U).

c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.

d. Calculate the labor price and usage variances and indicate whether they are favorable (F) or unfavorable (U).

e. Calculate the predetermined overhead rate, assuming that Shaffer uses the number of units as the allocation base.

f. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U).

g. Determine the amount of gross margin Shaffer would report on the year-end income statement.