20. Company Q’s ROE (return on equity) is 14%. It pays out one-half of its earnings as cash dividends (payout ratio = 50%). Current book value per share is $50. Book value per share will grow as Q reinvests earnings. Assume that the ROE and payout ratio stay constant for the next 4 years. After that, competition forces ROE down to 11.5% and the payout increases to 0.8. The cost of capital is 11.5%. a. What are Q’s EPS and dividends next year? How will dividends grow in years 2, 3, 4, 5 and subsequent years? b. What is Q’s stock worth per share? How does that value depend on the payout ratio and growth rate after year 4?

Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 7%, and the market’s average return was 15%. Performance is measured using an index model regression on excess returns.

a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.)

Please solve this to practice the concept of MPC and MPS and how to calculate consumption, GDP and saving in a closed economy with only households.

1. Answer the question on the basis of the following consumption schedule: C = 20 + .9Y, where C is consumption and Y is disposable income. What is the MPC and What is MPS?

2. Tessa's break-even income is $10,000 and her MPC is 0.75. If her actual disposable income is $16,000 how much does she save?

3. If DI is $275 billion and the APC is 0.8, then how much is the saving in this economy? (Hint: Use APC to estimate C for $275 billion of DI)

4. If S = -200 + .15Y, where S is saving and Y is disposable income. What is the MPC? What is the schedule for C?

4. The following are 20 observations of response times (in seconds) from a random sample of participants on a cognitive psychology task:

1.7       0.8       4.3       2.9       2.3       1.1       2.2       1.8       2.0       1.2       4.4       1.6       3.8       1.5       2.8

3.3       1.8       2.5       2.7       1.6

(a) Calculate the mean and unbiased standard deviation of the response times.

(b) Construct and interpret a 95% confidence interval for μ, which is the true mean response time. Assume that σ = 1.5.

(c) Construct and interpret a 90% confidence interval for μ, which is the true mean response time. Assume that σ is unknown.

(d) What would happen to the width of your confidence interval if our sample size increased? Explain.

Suppose a competitive firm’s production function is q = L 0.5K0.5 and the wage rate is w = $5 and the rental rate is r = $0.8

(a) If K is fixed at 25 units in the short-run, what is the short-run production function?

(b) What is the equation that determines how much labor the firm should hire to produce some quantity, q?

(c) Use your answer to (b) to derive the short-run total cost curve.

(d) What is the firm’s marginal cost curve? What is the firm’s average total cost curve?

(e) If the price of the firm’s product is $6, how many units should the firm choose to sell?

(f) What are its short-run profits?

Thanks for your help!

A flat furnace wall is constructed of a 4.5 in (114 mm) layer of Silo-cel brick, with a thermal conductivity of 0.08 Btu/ft·h·˚F (0.138 W/m·˚C), backed by a 9-in. (229-mm) layer of common brick, of conductivity 0.8 Btu/ft·h·˚F(1.38 W/m.˚C). The temperature of the inner face of the wall is 1400˚F (760˚C), and that of the outer face is 170˚F(76.6˚C).

(a) What is the heat loss through the wall?

(b) What is the temperature of the interface between the refractory brick and the common brick?

(c) Supposing that the contact between the two brick layers is poor and that a “contact resistance” of 0.50˚F·ft2.h/Btu (0.088˚Cm2/W) is present, what would be the heat loss?

Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average betas for each division of 0.8, 1.1, 1.5, and 1.7, respectively. Assume all current and future projects will be financed with 35 percent debt and 65 percent equity, the current cost of equity (based on an average firm beta of 1.3 and a current risk-free rate of 6 percent) is 15 percent and the after-tax yield on the company’s bonds is 11 percent. What will the WACCs be for each division? (Do not round intermediate calculations and round your final answers to 2 decimal places.) WACCs

Division A %

Division B %

Division C %

Division D %

A steam power plant operates on a regenerative Rankine cycle with two feedwater heaters, one closed and one open. Steam enters the turbine at 12.5 MPa and 550ºC and exhausts to the condenser at 10 kPa. Steam is extracted from the turbine at 1 MPa for the closed feedwater heater and 0.8 MPa for the open one. The feedwater is heated to the condensation temperature of the extracted steam in the closed feedwater heater. The extracted steam leaves the closed feedwater heater as a saturated liquid, which is subsequently throttled to the open feedwater heater. Show the cycle on a T-s diagram with respect to saturation lines, and determine(a) the mass flow rate of steam through the boiler for a net power output of 350 MW and (b) the thermal efficiency of the cycle.

1. The U.S. Census Bureau computes quarterly vacancy and homeownership rates by state and metropolitan statistical areas. The following data are the rental vacancy rates in percentage (%) grouped by region for the last quarter of 2018 using a sample of 4 statistical metropolitan areas.

                                     Vacancy rates (%)

1. You are hired as statistician to test whether there are any differences among the regions regarding vacancy rates and you should allow for 10% error.
2. Do you think that the mean vacancy rate is the same for these regions? Why