JKL Company has a 40% tax rate. JKL's bonds presently carry a yield to maturity of 9.23%. The common stock just paid a dividend of $2.20, is expected to grow at 4% per year forever and costs $18.33 per share. Flotation costs for new common stock are 8%. The capital structure consists of 40% debt and 60% common equity.
a) What is the cost of equity if no new common or preferred stock is issued?
b) What is the new cost of equity if new common must be issued?
In: Finance
To assess the effectiveness of a new diet formulation, a sample of 8 steers is fed a regular diet and another sample of 10 steers is fed a new diet. The weights of the steers at 1 yr are given in Table 5.14. Do these results imply that the new diet results in higher weights? (alpha=0.05)
Regular Diet: 831, 858, 833, 860, 922, 875, 797, 788
New Diet: 870, 882, 896, 925, 842, 908, 944, 927, 965, 887
**Please include R code
In: Statistics and Probability
Recently, the effects from Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) have been seen in most public firms. While many firms indicated that adoption of the new revenue recognition principle had no effect upon the timing of their revenue recognition, some firms indicated the new principle had significant effects upon their statements. For the firms where the new principle affected the timing of revenue, did the new revenue recognition principle speed or slow revenue recognition. Explain.
In: Accounting
CPP is interested in comparing if they should maintain the current lighting fixtures in Building 9 that has a life-cycle cost (NPV) of $50,000 or invest in new, indirect lighting fixtures in Building 9. The cost for the new fixture is $12,000 with savings of $1,000/year. A rebate will be granted after two years of operation for $1,500. Study period is 15 years. The university uses an annual rate of return of 4%. Calculate the life-cycle cost (i.e. NPV) for the new fixtures and advise if CPP should change the current fixture to the new ones.
In: Economics
create a new compnay/organiztion and explain the background, its market and product.
Then prepare pro forma/Budgeted Income statement & Retained Earning Statement of your new company/organization
then prepare Pro forma/Budgeted Balance sheet of your new company. The Budgeted Balance sheet is prepared like that of Balance sheet but only here you will use estimated amounts.
then Prepare pro forma/Budgeted Cash Flow statement of a new company.
Need to create a company and make up everything from sratch
In: Finance
HalHal
and
NickNick
are racing to develop a new brand of
tooth whitenertooth whitener.
They both believe that it will be
more effective than all othersmore effective than all others.
HalHal
and
NickNick
know that if they both develop the new product, they will make zero economic profit; if only one of them develops the new product, that firm will make an economic profit of
$2.52.5
million a week and the other will incur an economic loss of
$1.01.0
million a week; and if neither of them develops the new product, both will make an economic profit of $1.0 million.
In: Economics
Statistics can help decide the authorship of literary works. Sonnets by a certain Elizabethan poet are known to contain an average of 8.9 new words. The standard deviation of the number of new words is 2.5. Now a manuscript with six new sonnets has come to light, and scholars are debating whether it is the poet's work. The sonnets contain an average of 10.2 words not used in the poet's known works. Assume the number of new words used by this poet in each poem is normally distributed. What can you say about the authorship?
In: Statistics and Probability
The 10-year old system in Company ABX is found to generate inaccurate measurements for the production of their Product X. A team of analyst and developers was called in to assist in resolving this issue. They have proposed for a new system to be developed to replace the current system. Assume that you are part of the management team in deciding whether a new system is needed.
In your opinion, should the current system be replaced? Justify your answer.
If a new system is needed, what criteria should the developers provide to obtain the necessary funds to start the development of the new system?
In: Computer Science
A website is trying to increase registration for first-time visitors, exposing 1% of these visitors to a new site design. Of 752 randomly sampled visitors over a month who saw the new design, 64 registered.
(a) Check any conditions required for constructing a confidence interval.
(b) Compute the standard error.
(c) Construct and interpret a 90% confidence interval for the fraction of first-time visitors of the site who would register under the new design (assuming stable behaviors by new visitors over time).
In: Statistics and Probability
CPP is interested in comparing if they should maintain the current lighting fixtures in Building 9 that has a life-cycle cost (NPV) of $50,000 or invest in new, indirect lighting fixtures in Building 9. The cost for the new fixture is $12,000 with savings of $1,000/year. A rebate will be granted after two years of operation for $1,500. Study period is 15 years. The university uses an annual rate of return of 4%. Calculate the life-cycle cost (i.e. NPV) for the new fixtures and advise if CPP should change the current fixture to the new ones.
In: Economics