Q. A Company has different investment options for their food business in Dubai. The table below shows conditional values for the investment in various options for the Company under different states of nature (demand conditions). All values are in US Dollars.
|
Alternatives |
State of Nature |
|
|
High Demand |
Low Demand |
|
|
Option 1 |
7,000 |
-1,000 |
|
Option 2 |
12,000 |
4,000 |
|
Option 3 |
11,000 |
3,000 |
If the probabilities associated with the states of nature are 0.75 for high demand and 0.25 for a low demand, determine:
In: Finance
In: Nursing
A new drug for pain relief is being tested within a given palliative care population. The new drug is being compared to an already approved pain relief drug that is commonly used in providing palliative care to patients who experience chronic severe pain. Assume the patients are asked to rate the pain on a scale from 1 to 10, and the data presented below was obtained from a small study designed to compare the effectiveness of the two drugs. Set up and interpret the results of a Mann-Whitney U test with an alpha of .05.
Pain Rating as Reported by Patients
Old Drug 1 3 3 4 6
New Drug 1 2 3 3 7
|
Old Drug |
New Drug |
Total Sample (Ordered Smallest to Largest) |
Ranks |
||
|
Old Drug |
New Drug |
Old Drug |
New Drug |
||
|
R1= |
R2= |
||||
A) We fail to reject H0, which states the two populations are equal at the alpha equals .05 level because the calculated U value of 10.5 is greater than the critical U value of 2.
B) We fail to reject H0, which states the two populations are equal at the alpha equals .05 level because the calculated U value of 14.5 is greater than the critical U value of 2.
C) We reject H0 in favor of H1, which states the two populations are not equal at the alpha equals .05 level because the calculated U value of 10.5 is greater than the critical U value of 2.
D) We reject H0 in favor of H1, which states the two populations are not equal at the alpha equals .05 level because the calculated U value of 14.5 is greater than the critical U value of 2.
In: Math
6. Pricing foreign goods
The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency.
Suppose the following table presents nominal exchange rate data for November 26, 2014, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow
Cost of One Unit of Foreign Currency
Foreign Currency (Dollars)
Brazilian real (BRL) 0.3666
Canadian dollar (CAD) 0.8493
Euro (EUR) 1.3288
Japanese yen (JPY) 0.009748
Mexican peso (MXN) 0.0889
United Kingdom pound (GBP) 1.8965
Suppose that on November 26, 2014, a marble statue handmade in the United Kingdom is priced at GBP 530. The approximate U.S. dollar price of the statue would be _______ .
If the nominal exchange rate for the U.S. dollar-Mexican peso rises from $0.0889 to $0.10668 per Mexican peso _______ , in value, or the _______ , relative to the U.S. dollar.
In: Math
United Snack Company sells 40-pound bags of peanuts to university
dormitories for $60 a bag. The fixed costs of this operation are
$671,600, while the variable costs of peanuts are $0.35 per
pound.
a. What is the break-even point in bags?
|
b. Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags.
|
c. What is the degree of operating leverage at
19,000 bags and at 24,000 bags? (Round your answers to 2 decimal
places.)
|
d. If United Snack Company has an annual interest
expense of $35,000, calculate the degree of financial leverage at
both 19,000 and 24,000 bags. (Round your answers to 2 decimal
places.)
|
e. What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? (Round your answers to 2 decimal places.)
|
In: Accounting
Here are book- and market-value balance sheets of the United Frypan Company:
| Book-Value Balance Sheet | |||||
| Net working capital | $ | 35 | Debt | $ | 40 |
| Long-term assets | 65 | Equity | 60 | ||
| $ | 100 | $ | 100 | ||
| Market-Value Balance Sheet | |||||
| Net working capital | $ | 35 | Debt | $ | 40 |
| Long-term assets | 190 | Equity | 185 | ||
| $ | 225 | $ | 225 | ||
Assume that MM’s theory holds except for taxes. There is no growth, and the $40 of debt is expected to be permanent. Assume a 37% corporate tax rate.
a. How much of the firm's market value is accounted for by the debt-generated tax shield?
b. What is United Frypan’s after-tax WACC if
rDebt = 6.9% and rEquity =
16.1%? (Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places.)
c. Now suppose that Congress passes a law that
eliminates the deductibility of interest for tax purposes. What
will be the new value of the firm, other things equal? Assume a
borrowing rate of 6.9%. (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
In: Finance
Compute overhead rates and assign overhead using ABC.
(LO 2, 3), AP Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $94,500 were estimated. An analysis of estimated overhead costs reveals the following activities.
|
Activities |
Cost Drivers |
Total Cost |
|---|---|---|
|
1. Materials handling |
Number of requisitions |
$40,000 |
|
2. Machine setups |
Number of setups |
21,500 |
|
3. Quality inspections |
Number of inspections |
33,000 |
|
$94,500 |
The cost driver volume for each product was as follows.
|
Cost Drivers |
Instruments |
Gauges |
Total |
|---|---|---|---|
|
Number of requisitions |
400 |
600 |
1,000 |
|
Number of setups |
200 |
300 |
500 |
|
Number of inspections |
200 |
400 |
600 |
Instructions
a. Determine the overhead rate for each activity.
b. Assign the manufacturing overhead costs for April to the two products using activity-based costing.
c. Write a memorandum to the president of Air United explaining the benefits of activity-based costing.
In: Accounting
1.The sale of Australian superfine merino wool to Loro Piana, an Italian luxury goods manufacturer, shows up in the Australian balance of payments as
A. a credit on the capital account B. a debit on the current account C. a debit on the official reserves account D. a credit on the merchandise trade account
2. The spot rate on the Pound is $1.21 and the 180-day forward rate is $1.35. The difference between the two rates means
| A. |
the Pound is expected to fall in value relative to the dollar |
|
| B. |
interest rates are higher in the U.S. than in the United Kingdom |
|
| C. |
the Pound has risen in relation to the dollar |
|
| D. |
the inflation rate in the United Kingdom is declining |
The balance of payments identity is given by BCA + BKA + BRA = 0. Rearrange the identity for a country with a pure flexible exchange rate regime. BCA, BKA and BRA are defined as follows:BCA=Balance on the current account
BKA=Balance on the capital account
BRA=Balance on the reserves account
| A. |
BCA + BKA + BRA = 0 |
|
| B. |
BRA = -BCA |
|
| C. |
BCA + BKA = -BRA |
|
| D. |
BCA = -BKA |
In: Finance
United Snack Company sells 60-pound bags of peanuts to
university dormitories for $40 a bag. The fixed costs of this
operation are $305,000, while the variable costs of peanuts are
$0.25 per pound.
a. What is the break-even point in bags?
|
b. Calculate the profit or loss (EBIT) on 5,000 bags and on 18,000 bags.
|
c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags? (Round your answers to 2 decimal places.)
| Bags | Degree of Operating Leverage | |
| 17,000 | ||
| 22,000 | ||
d. If United Snack Company has an annual interest expense of $25,000, calculate the degree of financial leverage at both 17,000 and 22,000 bags. (Round your answers to 2 decimal places.)
| Bags | Degree of Financial Leverage | |
| 17,000 | ||
| 22,000 | ||
e. What is the degree of combined leverage at
both a sales level of 17,000 bags and 22,000 bags? (Round
your answers to 2 decimal places.)
| Bags | Degree of Combined Leverage | |
| 17,000 | ||
| 22,000 | ||
In: Finance
Daniel, age 38, is single and has the following income and expenses in 2017:
|
Daniel's standard deduction for 2017 is $6,350 and his personal exemption is $4,050.
a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".
|
b. Daniel's gross income is $ and his AGI income is $.
c. Calculate Daniel's total itemized deductions
(after any limitations).
$
In: Accounting