3. What is the weighted average cost of capital (WACC) and provide the equation when long-term debt and common equity are used to obtain capital funds? Please describe each component and how you measure each? How does a higher beta affect WACC and why? How does a drop in the bond market effect WACC and why? What is the WACC for a public utility given the following information: beta: 0.8, expected rate of return on the S&P 500: 12.4%, risk-free rate (T-bill yield): 4%, yield to maturity on long-term bonds: 7.2%, required rate of return on preferred stock: 7.5%, common equity ratio: 60%, debt ratio: 30%, preferred stock ratio: 10% and an effective corporate tax rate: 30%.

The table below reflects the actual and structural budget deficit as a percentage of GDP.

a. Graph the above data with “years” in the horizontal axis, and “deficit as % of GDP” in vertical axis.

b. From 2010 to 2014 the actual budget deficit is above the structural budget deficit. Explain why.

c. From 2016 to 2018 the actual budget deficit is below the structural budget deficit. Explain why.

d. Which period was the fiscal policy contractionary?

e. Which period was the fiscal policy expansionary?

A screen-printing business has to choose between printing t-shirts and

sweatshirts to manage risk due to dwindling student enrollments. The matrix below

shows the returns of each shirt and probabilities of three possible enrollment outcomes; high,

average, and low.

Which shirt type should the business produce considering each of the following decision rule?

i. Most likely outcome                        ______________________________

ii. Maximum expected value ______________________________

iii. Risk and returns comparison             ______________________________

iv. Safety first (maxi-min)      ______________________________

v. Minimum of $4,000 returns            ______________________________

Problem: Using the alternative-parameter method, determine the parameters of the following distributions based on the given assessments.

Find the parameter value β for the exponential distribution given:

P_E (T ≤ 15 \ β) = 0.50.

Find the parameters μ and s for a normal distribution given:

P_N (Y ≤ 125\ μ, s) = 0.25 and P_N (Y ≤ 12\ μ, s) = 0.75

Find the Min, Most Likely, and Max for the triangular distribution given:

P_T (Y ≤ 15\Min, Most Likely, Max) = 0.15

P_T (Y ≤ 50\Min, Most Likely, Max) = 0.50, and

P_T (Y > 95\Min, Most Likely, Max) = 0.05

Find the parameters values a₁ and a₂ for the beta distribution given:

P_B (Q ≤ 0.3\a_1, a₂) ₌ 0.05 and P_B (Q ≤ 0.5\a_1, a₂) ₌ 0.25

The flow rate of warm air into the air conditioning is 5,000 cfm. An air conditioning system takes outdoor air at 95 degrees F dry-bulb and 70% relative humidity, and discharges it at 60 degrees F dry-bulb and 95% relative humidity. The air conditioning system operates on a vapor compression cycle using R134a between 20 and 200 psia. Refrigerant enters the compressor at 20 degrees F and leaves the compressor at 180 degrees F. Refrigerant enters the evaporator coil at a quality of x = 0.3. Determine a) The quantity of water removed from the air, in lb/min. b) The quantity of heat removed from the air, in tons. c) The mass flow rate of refrigerant, in lb/s. d) The compressor's power requirement, in hp.

You are an industrial chemist working for a company that makes methanol (CH3OH) according to the equilibrium reaction shown below. You love your job, except that your assistant does not have the best notebook keeping skills. One day you set up the reaction with the equilibrium concentrations shown below.

CO (g) + 2 H2 (g) <--> CH3OH (g) 0.24 M 1.1 M 0.15 M at 327oC

Later on your assistant mentions that he added some more CO, but he doesn't remember how much. But he also remembers that as the equilibrium was being reestablished, the hydrogen concentration changed by 0.3 M, although he doesn't remember if it went up by that much, or down by that much. How much carbon monoxide did he add, in M?

You are planning a study of attitudes to the length of jail sentences for homicide, using a scale running from –4 to +4, where 0 indicates a judgment that current sentences are about right. Previous research suggests that the population SD for the scale is 1.2. You plan to use a single sample and would like to be able to detect a true effect of 0.5 scale units, using α = .01. If you use N = 100, using the same scale to compare attitudes in two very different neighborhoods. You would like to be able to detect a difference of 0.3 scale units. Consider power and make recommendations.

This is an exercise problem in one of the textbook by Geoff Cummings, Understanding The New Statistics, this is the first problem of chapter 12. This is all the information that it has and I must come with an answer regarding power and recommendations.

Problem: Using the alternative-parameter method, determine the parameters of the following distributions based on the given assessments.

Find the parameter value β for the exponential distribution given:

P_E (T ≤ 15 \ β) = 0.50.

Find the parameters μ and s for a normal distribution given:

P_N (Y ≤ 25\ μ, s) = 0.25 and P_N (Y ≤ 125\ μ, s) = 0.75

Find the Min, Most Likely, and Max for the triangular distribution given:

P_T (Y ≤ 15\Min, Most Likely, Max) = 0.15

P_T (Y ≤ 50\Min, Most Likely, Max) = 0.50, and

P_T (Y > 95\Min, Most Likely, Max) = 0.05

Find the parameters values a₁ and a₂ for the beta distribution given:

P_B (Q ≤ 0.3\a_1, a₂) ₌ 0.05 and P_B (Q ≤ 0.5\a_1, a₂) ₌ 0.25

Basic calculations based on the Central Limit theorem: Determine the appropriate ^µ_X and σ_X given the population mean is 1020, σ is 153, and with a normal x-distribution, if Basic calculations based on the Central Limit theorem: Determine the appropriate ^µ_X and σ_X given the population mean is 1020, σ is 153, and with a normal x-distribution, if

a) n=16

b) n=50

c) n=1000

8) Determine the following probabilities given a normal x-distribution(convert to z first):

(a) µ is 8, σ is 17 with n = 64. Find P(_X>9).

(b) µ is 20, σ is 3 with an n = 36. Find P(_X<19).

(c) µ is 32, σ is 0.3 with an n = 20. Find P(31.8<_X<31.9).