Questions
You are trying to value “A2M” share today (End of June 2019). Assume the current price...

You are trying to value “A2M” share today (End of June 2019). Assume the current price of the share in the stock market is $17.15 and that you would like to hold the investment for 4 years. Assume that “A2M” will pay its first dividend ($0.5 AUD) one year from now. The total dividend will be paid as a lump sum (at once). After this you also estimate that the dividends will grow respectively at 30%, 25% per year. After that (starting in time 3) you estimate dividends will grow at a constant rate of 5% forever. Assume that today the Australian treasury notes is 1.5%, the market risk premium is 10% and the beta of “A2M” is 0.8. Based on this price would you purchase the share? Why or why not? [9 marks]

In: Finance

Kenny G spends all his income on two musical instruments: xylophones (x) and yotars (y). Kenny's...

Kenny G spends all his income on two musical instruments: xylophones (x) and yotars (y). Kenny's utility function is U(x,y)=x^0.2y^0.8 and his income is $50. Assume that xylophones cost $10 and yotars cost $10 per unit.

Kenny has a general preference for ________. Since the instruments have the same price, we assume his optimal bundle will contain more_________ . Indeed, his optimal bundle includes________ xylophone(s) and _______ yotars. The utility he obtains from this bundle is equal to ________, which is higher than the utility he obtains from any other bundle he can afford, e.g. the bundle (2, 3) which gives him a utility of _______.

In: Economics

The idea is to design an experiment to synthesize Compound B from Compound A. I have...

The idea is to design an experiment to synthesize Compound B from Compound A. I have the idea in mind. I wrote out the stochiometry, the reaction mechanism and most of the procedure... I need help with separation and purification of the compounds. I'm using column chromatography for this. I have a mixture of Compound B (C10H9O2Cl) - Solubility in 10mL hexane of 0.4 and solubility in 10 mL ethyl ether of 0.8 and also Compound C (C10H11O3Cl) which is the byproduct - solubility in the 10mL hexane of 0.44 and in the 10mL of ethyl ether of 0.5. How do I go about doing the separation and purification???? I know the tube is packed with cotton and silica or alumina. What solvent do I use and how do I prepare this? Thank you!

In: Chemistry

Suppose you are the money manager of a $4.48 million investment fund. The fund consists of...

Suppose you are the money manager of a $4.48 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta
A $   340,000 1.50
B 800,000 (0.50 )
C 1,140,000 1.25
D 2,200,000 0.75

If the market's required rate of return is 11% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

2. An individual has $20,000 invested in a stock with a beta of 0.8 and another $35,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

In: Finance

Bonita Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all...

Bonita Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2020, are presented below.

Employee Hours Worked Hourly Rate Federal Income Tax Withholdings United Fund

Ben Abel 40 $15 $? $5

Rita Hager 42 16 ? 5

Jack Never 44 13 60 8

Sue Perez 46 13 61 5

Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively.

The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%.

In: Accounting

Health Corporation has several notes receivable reported as current assets on its year-end balance sheet. While...

Health Corporation has several notes receivable reported as current assets on its year-end balance sheet. While collection seems certain, it may be delayed beyond one year. Because of this, Jerome, the controller wants to reclassify these notes as non-current. Health’s treasurer, Amanda also thinks that collection will be delayed but does not favor reclassification because this will reduce the current ration from 1.5:1 to 0.8:1. This reduction in current ratio is detrimental to company prospects for securing a major loan. Instructions: 1. Identify and describe more than one ethical perspective in resolving the identified dilemma. 2. Clarify the advantages and disadvantages of implementing each ethical perspective. 3. Determine and support a proposed solution.

In: Accounting

1. If inflation is a major issue in the economy, what would be the correct fiscal...

1. If inflation is a major issue in the economy, what would be the correct fiscal policy response from an economic perspective? Why would members of Congress be unlikely to support such actions?

                        2.   Why is the tax multiplier smaller than the government spending multiplier?

                          3. Explain how a larger government budget deficit increase the magnitude of the crowding-out effect?

                           4. When an economy is already at full employment, what is the outcome of expansionary fiscal policies to employment, inflation, real output, and deficits (assuming no changes in tax rates)?

5. Explain the effects of the following actions on equilibrium income, assuming that the marginal propensity to consume is 0.8

                   a. Government purchases rise by $40 billion.

                   b. Taxes fall by $40 billion.

In: Economics

A bubble is sphere with 10 mm radius and a density of 1.0 kg/m^3. This goes...

A bubble is sphere with 10 mm radius and a density of 1.0 kg/m^3.

This goes up in a glass of water which has Pwater=0.95 g/cm^3.

It starts at the bottom of a glass which is 10 cm tall.

Cd=0.8

Hypothesize how long it would take the bubble to rise to the top of the glass.

Draw a complete force diagram of the bubble, including weight, buoyancy and drag forces. Make sure your coordinate axis points in the direction of positive acceleration.

Write down the equation of motion in the vertical direction, and solve for the terminal speed of the bubble when these forces are in balance.

Assuming the bubble mostly travels at this terminal speed, how much time does it take to get to the top of the glass?

In: Physics

You want to study the relationship between fat intake (g/day) and death rate in the Central...

  1. You want to study the relationship between fat intake (g/day) and death rate in the Central Valley. Your friend, from PH 109, suggests that you conduct an ecological study first. You found the data and summarized it below. What is the association between fat intake (g/day) and death rate? Explain the ecological fallacy. Please show your scatter plot. (3 points)

County

Fat Intake (g/day)

Age-adjusted death rate (per 100,000 population)

Fresno

140

2.1

Kings

120

1.9

Tulare

119

0.8

Madera

130

0.9

Stanislaus

100

1.0

Merced

121

1.2

Kern

98

1.3

San Joaquin

95

1.1

In: Statistics and Probability

The following summary data relate to the operations of Beckett Company for July, during which 12,000...

The following summary data relate to the operations of Beckett Company for July, during which 12,000 finished units were produced: Direct material: Standard (0.8 lb. @ $6.00/lb.) Actual (8,500 lb. @ $6.25/lb.) Direct labor: Standard (1 hr. @ $16.00/hr.) Actual (12,700 hrs. @ $15.60/hr.) Variable overhead: Standard (1 hr. @ $10.00/hr.) Actual ($121,000) Required: Compute the following variances and indicate whether each is favorable (F) or unfavorable (U). 1. Materials price variance 2. Materials efficiency variance 3. Labor rate variance 4. Labor efficiency variance 5. Variable overhead spending variance 6. Variable overhead efficiency variance

In: Accounting