|
Sunrise, Inc., has no debt outstanding and a total market value of $240,900. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 14 percent higher. If there is a recession, then EBIT will be 25 percent lower. The company is considering a $130,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,300 shares outstanding. The company has a tax rate of 23 percent, a market-to-book ratio of 1.0, and the stock price remains constant. |
| a-1. |
Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| a-2. | Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b-1. | Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| b-2. | Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
|
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In: Finance
Mike L., a 47-year-old man, went to his physician for an annual physical that had been postponed for over 3 years. He had started his own business 4 years ago and had been extremely busy getting it established. Mike’s medical history indicated he was a nonsmoker, and his father and grandfather had histories of myocardial infarctions before age 55. Since she had not seen this patient in a number of years, the physician decided to order routine screening tests.
CHEMISTRY RESULTS:
|
Test |
Patient Results |
Reference Range |
|
Sodium |
143 |
136-145 mEq/L |
|
Potassium |
4.6 |
3.6-5.0 mEq/L |
|
Chloride |
104 |
101-111 mEq/L |
|
CO2 |
29.0 |
24.0-34.0 mEq/L |
|
Glucose |
95 |
80-120 mg/dL |
|
BUN |
19 |
7-24 mg/dL |
|
Creatinine |
1.0 |
0.5-1.2 mg/dL |
|
Bilirubin Total |
0.5 |
0.2-1.2 mg/dL |
|
AST |
35 |
5-40 IU/L |
|
ALP |
70 |
30-157 IU/L |
|
Total Protein |
7.5 |
6.0-8.4 g/dL |
|
Albumin |
4.6 |
3.5-5.0 g/dL |
|
Calcuim |
8.5 |
8.5-10.5 mg/dL |
|
Cholesterol |
305 |
<200 mg/dL |
URINALYSIS:
|
Macroscopic |
Patient Results |
Reference Range |
|
Color |
Yellow |
Colorless to amber |
|
Appearance |
Clear |
Clear |
|
Specific Gravity |
1.014 |
1.001-1.035 |
|
pH |
6.0 |
5-7 |
|
Protein |
Neg |
Neg |
|
Glucose |
Neg |
Neg |
|
Ketones |
Neg |
Neg |
|
Bilirubin |
Neg |
Neg |
|
Blood |
Neg |
Neg |
|
Urobilinogen |
Normal |
Normal |
|
Macroscopic |
||
|
Nitrite |
Neg |
Neg |
|
Leukocyte esterase |
Neg |
Neg |
1. Indicate the abnormal results
2. Which conditions listed for question 2 can the physician rule out with Mike’s medical history, physical examination, and current laboratory results?
3. What is the most probable cause of the abnormal result in this patient.
In: Nursing
A 78-year-old man was admitted with pneumonia hyponatremia. Plasma Na concentration was initially 129 meq/L, decreasing within 3 days to 118-120 meq/L despite fluid restriction to 1 liter/day. A chest CT scan revealed a right 2.8 x 1.6 cm infrahilar mass and post obstructive pneumonia. The patient was active smoker. Past medical history was notable for laryngeal carcinoma treated 15-yearsprior with radiation therapy, renal carcinoma, peripheral vascular disease, and hypothyroidism. On review of system, he denied headache, nausea and vomiting. He had chronic hip pain, managed with acetaminophen. Other medications include cilostasol, amoxicillin, digoxin, diltiazem, and thyroxine. He was euvolemic on examination, with no lymphadenopathy and a normal chest examination.
Laboratory Results:
Na-120
TSH-2.6
K-4.3
Uric acid-2.7 mg/dl
cl-89
Bun-8
Crea-1.0
Glucose-93
Mg-2.0
Phos-2.8
Ca-8.9
Alb-31
The patient was treated with furosemide 20 mg PO BID and salt tablets. The plasma Na concentration increased to Na meq/L with this therapy: How ever the patient developed orthostatic hypotension and dizziness. He was stated on demeclocycline, 600 mg PO in the morning and 300 mg in the evening, just before discharge from hospital. Plasma concentration increase to140 meq/L with Bun of 23 and crea of 1.4 at which point demeclocycline was reduced to300 mg POBID. Bronchoscopic biopsy eventually showed small lung cancer. The patient declined chemotherapy and was discharged.
Create a conceptual map using the case scenarios as guide. Conceptual map should include pathophysiology, medical diagnosis, signs and symptoms, and risk factors, if any. Nursing diagnosis, nursing interventions, medical management (medication and procedures), expected outcomes.
In: Nursing
Which of the following are ways that a firm can reduce cash flows in order to prevent managers from wastefully spending excess cash flows? Check all that apply.
Minimizing the amount of debt in the firm’s capital structure so that the firm can borrow money at a reasonable rate when good investment opportunities arise
Increasing the amount of debt in the firm’s target capital structure in the hope that higher debt-service requirements will force managers to be more disciplined
Funneling excess cash flows back to shareholders through higher dividends
Funneling excess cash flows back to shareholders through stock repurchases
Blue Ram Brewing Company currently has no debt in its capital structure, but it is considering using some debt and reducing its outstanding equity. The firm’s unlevered beta is 1.1, and its cost of equity is 11.80%. Because the firm has no debt in its capital structure, its weighted average cost of capital (WACC) also equals 11.80%. The risk-free rate of interest (rRFrRF) is 3%, and the market risk premium (RP) is 8%. Blue Ram’s marginal tax rate is 35%.
Blue Ram is examining how different levels of debt will affect its costs of debt and equity, as well as its WACC. The firm has collected the financial information that follows to analyze its weighted average cost of capital (WACC). Complete the following table.
|
D/Cap Ratio |
E/Cap Ratio |
D/E Ratio |
Bond Rating |
Before-Tax Cost of Debt (rdrd) |
Levered Beta (b) |
Cost of Equity (rsrs) |
WACC |
|---|---|---|---|---|---|---|---|
| 0.0 | 1.0 | 0.00 | — | — | 1.1 | 11.80% | 11.80% |
| 0.2 | 0.8 | 0.25 | A | 8.4% | 13.232% | 11.678% | |
| 0.4 | 0.6 | 0.67 | BBB | 8.9% | 1.577 | 15.616% | |
| 0.6 | 0.4 | 1.50 | BB | 11.1% | 2.173 | 12.483% | |
| 0.8 | 0.2 | C | 14.3% | 3.960 | 34.680% |
In: Accounting
Unsure how to set this up properly in excel?
Assignment #6
The Nimble Digits Division of Block C Enterprises manufactures computer furniture and accessories.At the present time 15 different components are being produced.Each product is some combination of steel, plastic, wood, aluminum and formica.The availability of these component materials is 980 pounds of steel alloy, 400 sq ft of plastic, 600 bd ft of wood, 2500 pounds of aluminum, 1800 bd ft of Formica and labor is limited to 1000 hours.Given the data below, determine how many of each item should be produced to maximize the profit.Also determine how the profit would change if the monthly demand for all items with an a through e prefix is eliminated.
Item a158 requires 0.4 sq ft of plastic, 0.7 bd ft of wood, 5.8 pounds of aluminum, 10.9 bd ft of Formica and 3.1 hours of labor.There is no minimum monthly demand and this item's contribution to the profit is $18.79.
Item b179 requires 4 pounds of steel, 0.5 sq ft of plastic, 1.8 bd ft of wood, 10.3 pounds of aluminum, 2.0 bd ft of Formica and 1.0 hours of labor.The minimum monthly demand is 20 and this item's contribution to the profit is $6.31.
Item c023 requires 6 pounds of steel, 1.5 bd ft of wood, 1.1 pounds of aluminum, 2.3 bd ft of Formica and 1.2 hours of labor.The minimum monthly demand is 10 and this item's contribution to the profit is $8.19.
Item d045 requires 10 pounds of steel, 0.4 sq ft of plastic, 2.0 bd ft of wood, and 4.8 hours of labor.The minimum monthly demand is 10 and this item's contribution to the profit is $45.88.
Item e388 requires 12 pounds of steel, 1.2 sq ft of plastic, 1.2 bd ft of wood, 8.1 pounds of aluminum, 4.9 bd ft of Formica and 5.5 hours of labor.There is no minimum monthly demand and this item's contribution to the profit is $63.00.
In: Accounting
A cell phone manufacturer claims that the population mean battery life of its flagship smartphone model, the Black Bear, is greater than the population mean battery life of the largest competitor, the Grizzly. A consumer advocacy publication tests this claim by purchasing a random sample of Black Bear smartphones and a random sample of Grizzly smartphones. Members of the publication charged each smartphone to full capacity and then had the smartphones play back the same videos until the batteries were completely depleted. The publication researched the population standard deviation of the battery life from the manufacturers. The population standard deviation for the Black Bear is assumed to be 0.71 hour, and the population standard deviation for the Grizzly is assumed to be 0.63 hour. The results of the battery life test are shown below. Let μ1 be the population mean battery life for the Black Bear and μ2 be the population mean battery life for the Grizzly. If the test statistic is z=1.38, what is the p-value for this hypothesis test?
Do not round your answer; compute your answer using a value from the table below.
| z | 0.00 | 0.01 | 0.02 | 0.03 | 0.04 | 0.05 | 0.06 | 0.07 | 0.08 | 0.09 |
| 0.6 | 0.726 | 0.729 | 0.732 | 0.736 | 0.739 | 0.742 | 0.745 | 0.749 | 0.752 | 0.755 |
| 0.7 | 0.758 | 0.761 | 0.764 | 0.767 | 0.770 | 0.773 | 0.776 | 0.779 | 0.782 | 0.785 |
| 0.8 | 0.788 | 0.791 | 0.794 | 0.797 | 0.800 | 0.802 | 0.805 | 0.808 | 0.811 | 0.813 |
| 0.9 | 0.816 | 0.819 | 0.821 | 0.824 | 0.826 | 0.829 | 0.831 | 0.834 | 0.836 | 0.839 |
| 1.0 | 0.841 | 0.844 | 0.846 | 0.848 | 0.851 | 0.853 | 0.855 | 0.858 | 0.860 | 0.862 |
| 1.1 | 0.864 | 0.867 | 0.869 | 0.871 | 0.873 | 0.875 | 0.877 | 0.879 | 0.881 | 0.883 |
| 1.2 | 0.885 | 0.887 | 0.889 | 0.891 | 0.893 | 0.894 | 0.896 | 0.898 | 0.900 | 0.901 |
| 1.3 | 0.903 | 0.905 | 0.907 | 0.908 | 0.910 | 0.911 | 0.913 | 0.915 | 0.916 | 0.918 |
In: Statistics and Probability
In: Computer Science
You receive the Dean’s Scholarship which pays you RMB 100,000 annually for 3 years. The first payment will be made one year from today. What is the Present Value of these 3 payments if interest rate is 3% p.a.? A. RMB 246,168 B. RMB 257,710 C. RMB 267,301 D. RMB 282,861 E. RMB 288,388
A bank manager tells you the monthly rate is 0.5%. What is the Effective Annual Rate? A. 2.43% B. 3.66% C. 6.17% D. 12.68% E. 79.58%
The Annual Percentage Rate is 12%. What is the semi-annually rate? A. 1% B. 2% C. 3% D. 4% E. 6%
The nominal interest rate is 8% p.a. and the inflation rate is 6% p.a. Determine the real interest rate using the exact method. A. 1.02% p.a. B. 1.69% p.a. C. 1.89% p.a. D. 1.98% p.a. E. 2.56% p.a
What is the price of a 5.0% annual coupon bond with a $1,000 face value which matures in 5 years? The yield-to-maturity (YTM) is 3.0% p.a. A. $ 913.42 B. $ 945.54 C. $1,000.00 D. $1,056.57 E. $1,091.59
You are paying $ 1,516.15 for a 3.0% annual coupon bond with a $1,000 face value, which matures in 30 years? Determine the yield-to-maturity (YTM). A. 1.0% B. 2.0% C. 3.0% D. 4.0% E. 5.0%
There is a 3-year bond which pays 4% annual coupons. You use a $1,000 face value and a required return rate of 2.15% p.a. in your calculations. Determine the Current Yield. A. 2.93% B. 3.80% C. 4.62% D. 5.40% E. The correct answer cannot be determined because the bond price is not provided.
What is the price of a 5.0% semi-annual coupon bond with a $1,000 face value which matures in 5 years? The yield-to-maturity (YTM) is 3.0% p.a. A. $1,070.68 B. $1,092.22 C. $1,113.76 D. $1,230.55 E. $1,255.55
In: Finance
14. The table below ~hows the probabilities of all
realizations
for each of the three dice. Notice that the dice are all
"loaded" meaning that they are unbalanced in some way
leading to an unequal probability of any number coming
up.
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Die 1 | 3.6% | 30.7% | 8.3% | 6.1% | 25.6% | 25.7% |
| Die 2 | 43.0% |
1.2% |
17.3% | 21.9% | 14.5% | 2.1% |
| Die 3 | 12.1% | 30.2% | 1.0% | 18.2% | 12.3% | 26.2% |
1. If die 3 is rolled, what is the probability of rolling
a
two?
b. If one of these three dice is selected at random and
roll ed, what is the probability of rolling a two?
c. If one of these three dice is selected at random and
rolled, what number is the least likely to appear?
d. If one of these three dice is selected at random and a
two is rolled, what is the probability that die 3 was
rolled?
e. If one of these three dice is selected at random and a
four is rolled, what die is the most likely to have been
chosen?
f. If die 1 and 2 are selected and rolled, and one adds
their realizations, what is the probability that this
sum is 7?
g. If die 1 and 2 are selected and rolled, and one adds
their realizations, what is the probability that this
sum is less than S?
h. If die 1 and 2 are selected and rolled, and one adds
their realizations, what is the sum is that is more
likely to appear?
i. If die 2 and 3 are selected and rolled, and one adds
their realizations, what is the probability that this
sum is less than 11?
j. If die 1 and 3 are selected and rolled, what is the
probability that the minimum of the two realizations
is 2?
k. If die 1 and 3 are selected and rolled, what is the
probability that the minimum of the two realizations
is 5?
I. If die 1 and 3 are selected and rolled, what is the
probability that the minimum of the two realizations
is less than 4?
m. If die 2 and 3 are selected and rolled, what is the
probability that the maximum of the two realizations
is greater than 6?
In: Statistics and Probability
Which insect repellents protect best against mosquitoes?
Consumer reports (June 2000) tested 14 products that all claim to
be an effective mosquito repellent. Each product was classified as
either lotion/cream or aerosol/spray. The cost of the product (in
dollars ) was divided by the amount of the repellent needed to
cover exposed areas of the skin *about 1/3 ounce) to obtain a
cost-oer0use value. Effectiveness was measured as the maximum
number of hours of protection (in half-hour increments) provided
when human testers exposed their arms to 200 mosquitoes. The data
from the report:
Insect
Repellent
Type Cost/Use Maximum Protection
Away HourGuard
12
Lotion/Cream $2.08
13.5 hours
Avon Skin-So-Soft Aerosol/Spray
0.67
0.5
Avon BugGuard
Plus
Lotion/Cream
1.00
2.0
Ben's Backyard Formula Lotion/Cream
0.75
7.0
Bite
Blocker
Lotion/Cream
0.46
3.0
BugOut
Aerosol/Spray 0.11
6.0
Cutter
Skinsations
Aerosol/Spray 0.22
3.0
Cutter UNscented Aerosol/Spray
0.19
5.5
Musko1l
Ultra6Hours
Aerosol/Spray
0.24
6.5
Natrapel
Aerosol/Spray 0.27
1.0
Off! Deep Woods
Aerosol/Spray
1.77
14.0
Off! Skintastic Lotion/Cream
0.67
3.0
Sawyer Deet
Formula
Lotion/Cream 0.36 7.0
Repel
Permanone
Aerosol/Spray 2.75 24.0
a. Suppose you want to use repellent type to model the cost per use
(y). Create the appropriate number of dummy variables for repellent
type, and write the model.
b. Fit the model you wrote in part a to the data.
c. Give the null hypothesis for testing whether repellent type is a
useful predictor of cost per use (y).
d. Conduct the test suggested in part c and give the appropriate
conclusion. Use alpha=.10.
e. Repeat parts a-d if the dependent variable is maximum number of
hours of protection (y).
In: Statistics and Probability