In: Economics
If you were given a large data set, such as the sales over the last year of our top 100 customers, what might you be able to do with these data? What might be the benefits of describing the data?
In: Math
The mean per capita consumption of milk per year is 133 liters with a variance of 576.
If a sample of 195 people is randomly selected, what is the probability that the sample mean would differ from the true mean by less than 3.62 liters? Round your answer to four decimal places.
In: Math
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A(n) eight-year bond has a yield of 9% and a duration of 7.201 years. If the bond's yield increases by 25 basis points, what is the percentage change in the bond's price? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| The bond's price (Click to select)decreased byincreased by %. |
In: Finance
At 6.5% APR, what is the present value of $2263 per year forever, if the first payment will be received 16 years from today? (Rounded to the nearest 10 cents.)
In: Finance
Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 75,000 units of product: net sales $1,500,000; total costs and expenses $1,620,000; and net loss $120,000. Costs and expenses consisted of the following.
| Total | Variable | Fixed | |
| Cost of Goods Sold | $962,000 | $451,000 | $511,000 |
| Selling Expenses | 510,000 | 91,000 | 419,000 |
| Administrative Expenses | 148,000 | 58,000 | 90,000 |
| $1,620,000 | $600,000 | $1,020,000 |
Management is considering the following independent alternatives
for 2020.
1.Increase unit selling price 25% with no change in costs and
expenses.
2.Change the compensation of salespersons from fixed annual salaries totaling $205,000 to total salaries of $35,025 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.
(a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.)
(b) Compute the break-even point in dollars under
each of the alternative courses of action for 2020.
(Round contribution margin ratio to 3 decimal places
e.g. 0.251 and final answers to 0 decimal places, e.g.
2,510.)
| Break-even point | |
| 1) increase selling price | $ |
| 2) change compensation | $ |
| 3) purchase machinery | $ |
In: Accounting
In: Operations Management
A company has the following accounts and account balances at the
end of its first year:
Accounts payable, $4,000
Cash, $22,000
Common stock, Not given
Dividends, $4,000
Expenses, $17,000
Notes payable, $3,000
Prepaid insurance, $5,000
Revenues, $28,000
What is the balance of its common stock account at the end of the
first year?
In: Accounting
Assume that the 1-year zero-coupon bond is sold at $89.78 and the yields to maturity for the coupon bonds selling at market prices equal to their face values are 11% and 13% for 1-year and 1.5-year issues respectively. Coupons are paid every 6 months and face values are $100 for all the bonds.
(a) Calculate the spot rate curve (s0.5, s1, s1.5).
(Keep your answer in decimal format 4 decimal places, e.g. 0.1234. Do not give in percent format e.g. 12.34%.)
s0.5: s1: s1.5 :
(b) Compute the quasi-modified duration for each of these bonds. (Keep 2 decimal places, e.g. xx.12.)
Zero-coupon bond:
11% coupon bond:
13% coupon bond:
(c) Determine the current price of an 14% coupon bond with face value $100 and 18 months to maturity. (Keep 2 decimal places, e.g. xx.12.)
In: Finance
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Pearl Corp. is expected to have an EBIT of $3,700,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $170,000, and $210,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $19,000,000 in debt and 1,150,000 shares outstanding. At Year 5, you believe that the company's sales will be $29,410,000 and the appropriate price-sales ratio is 2.9. The company’s WACC is 9.4 percent and the tax rate is 24 percent. |
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What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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In: Finance