1) Suppose rRF = 6%, rM = 9%, and bi = 1.5.
What is ri, the required rate of return on Stock i?
Round your answer to two decimal places.
%
1. Now suppose rRF increases to 7%. The slope of the SML remains constant. How would this affect rM and ri?
2. Now suppose rRF decreases to 5%. The slope of the SML remains constant. How would this affect rM and ri?
c.
1. Now assume that rRF remains at 6%, but rM increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places.
The new ri will be %.
2. Now assume that rRF remains at 6%, but rM falls to 8%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places.
The new ri will be %.
In: Finance
Cascade Company was started on January 1, Year 1, when it
acquired $152,000 cash from the owners. During Year 1, the company
earned cash revenues of $80,700 and incurred cash expenses of
$68,400. The company also paid cash distributions of $6,500.
Required
Prepare a Year 1 income statement, capital statement (statement of
changes in equity), balance sheet, and statement of cash flows
under each of the following assumptions. (Consider each assumption
separately.)
c. Cascade is a corporation. It issued 10,000 shares of $9 par common stock for $152,000 cash to start the business. (Amounts to be deducted should be indicated with minus sign.)
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In: Accounting
Jacob Jones is the manager of the produce section at Snell’s grocery store. Jacob must determine each day how many pounds of bananas to order from the supplier. Demand varies somewhat from day to day and if Jacob orders too many bananas, he will have to sell leftovers at a discount, if he orders too few bananas, customers will be dissatisfied and complain to his boss. Jacob wants to set up a profit model in Excel to experiment with the number of pounds of bananas he should order each day.
Bananas are ordered (and assume delivered the same day) from the supplier each day and cost Jacob 15 cents per pound. They are sold for 69 cents a pound if sold the first day after delivery.
Any bananas that are not sold the first day must be discounted to 39 cents per pound. Assume all bananas that are discounted will be sold at the lower price.
a. Set up an EXCEL spreadsheet in order to calculate profit for Jacob’s banana problem.
First day Demand and Order Quantity are separate unknown variables.
You must use the Excel IF function in this model.
b. Using Excel Data/What-If/Data Table create a two way-table to show how profit changes with changes in First day demand and Quantity ordered. Use values of 100, 120, 140, 160, 180, and 200 for both variables in your table.
In: Statistics and Probability
REQUIRED RATE OF RETURN
Suppose rRF = 8%, rM = 13%, and bi = 1.2.
What is ri, the required rate of return on Stock i?
Round your answer to two decimal places.
%
1. Now suppose rRF increases to 9%. The slope of the SML remains constant. How would this affect rM and ri?
2. Now suppose rRF decreases to 7%. The slope of the SML remains constant. How would this affect rM and ri?
1. Now assume that rRF remains at 8%, but rM increases to 14%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places.
The new ri will be %.
2. Now assume that rRF remains at 8%, but rM falls to 12%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places.
The new ri will be %.
In: Finance
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We are evaluating a project that costs $619,500, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $43, variable cost per unit is $30, and fixed costs are $705,000 per year. The tax rate is 22 percent, and we require a return of 11 percent on this project. |
| a-1. |
Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| a-2. | What is the degree of operating leverage at the accounting break-even point? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
| b-1. | Calculate the base-case cash flow and NPV. (Do not round intermediate calculations. Round your cash flow answer to the nearest whole number, e.g., 32. Round your NPV answer to 2 decimal places, e.g., 32.16.) |
| b-2. | What is the sensitivity of NPV to changes in the quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| c. | What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. ) |
In: Finance
Suppose rRF = 6%, rM = 11%, and bi = 1.5.
2. Now suppose rRF decreases to 5%. The slope of the SML remains constant. How would this affect rM and ri?
-Select-IIIIIIIVVItem 3
What is ri, the required rate of return on Stock i?
Round your answer to two decimal places.
%
1. Now suppose rRF increases to 7%. The slope of the SML remains constant. How would this affect rM and ri?
1. Now assume that rRF remains at 6%, but rM increases to 12%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places.
The new ri will be %.2. Now assume that rRF remains at 6%, but rM falls to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places.
The new ri will be %.In: Finance
1. Which of the following statements is true concerning the flexible budget?
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a. |
The flexible budget shows the expected relation between costs and volume. |
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b. |
The flexible budget has a fixed cost component which is expected to be incurred regardless of the level of activity. |
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c. |
The flexible budget has a variable cost per unit of activity component where variable costs change in total as the level of activity changes. |
|
d. |
all of the above. |
2. What is the primary difference between a fixed budget and a flexible budget?
|
a. |
A fixed budget includes only fixed costs, while a flexible budget includes only variable costs. |
|
b. |
A fixed budget is concerned only with future acquisitions of fixed assets, while a flexible budget is concerned with expenses, which vary with sales. |
|
c. |
A fixed budget cannot be changed after the period begins, while a flexible budget can be changed after the period begins. |
|
d. |
A fixed budget is a plan for a single level of sales (or other measure of activity), while a flexible budget consists of several plans, one for each of several levels of sales (or other measure of activity). |
3. Which of the following might cause a materials variance?
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a. |
Failing to take purchase discounts. |
|
b. |
Using a better grade of raw material. |
|
c. |
Changes in the market supply for the raw materials. |
|
d. |
All of the above. |
In: Accounting
The following table lists the weight of individuals before and after taking a diet prescribed by a weight-loss company for a month:
Weight-loss Data:
Individual: A, B, C, D, E, F
Weight Before (lb): 123.7, 128.7, 135.6, 194.9, 145.5, 162.3
Weight After (lb): 109.4, 109.7, 123.3, 186.5, 126.8, 151.5
Weight loss (lb): 14.3, 19.0, 12.3, 8.4, 18.7, 10.8
You may find this Student's t distribution table useful in answering the following questions. You may assume that the differences in weight are normally distributed.
a)Calculate the sample variance (sd2) of the changes in individual weights. Give your answer to 2 decimal places.
sd2 =
b)A disgruntled customer states: "This weight-loss company is a complete farce. All the people I know who signed up experienced no changes in their weight at all. I seriously doubt this diet has any effect whatsoever. I want my money back!"
You plan to do a hypothesis test on this claim where the hypotheses are:
H0: the customer's claim is true and the program has no effect on weight
HA: the customer's claim is not true and the program does have an effect on weight, whether it increases or decreases
According to the data given, you should accept, reject, or not reject the null hypothesis at a confidence level of 99%.
In: Math
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Ghost, Inc., has no debt outstanding and a total market value of $308,100. Earnings before interest and taxes, EBIT, are projected to be $46,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 31 percent lower. The company is considering a $160,000 debt issue with an interest rate of 5 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,900 shares outstanding. The company has a tax rate of 24 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. |
In: Finance
Vinnie is a professional road cyclist participating in the 2020 Giro d’Italia, a three-week race nearly 3,600 km in distance with some stages exceeding altitudes of 2,700 m above sea level (i.e., Stelvio Pass, Italy). As the newly hired head of the high-performance team, it is your responsibility to manage his preparation for the event. You must demonstrate to your team a fundamental understanding of physiology, the chronic adaptations expected from his training, and methods that could be implemented to improve the likelihood of success.
Q7)
Given that the average distance of each leg is 170.5 km in distance, and sometimes undulating in elevation, you understand that fatigue is inevitable. The energy depletion model of fatigue focuses around the concept that depleted substrates are just one source of fatigue, particularly observed in muscle glycogen and phosphocreatine stores.
Why, specifically, is it crucial to replenish muscle glycogen stores prior to the next leg?
Q8)
As the event is soon approaching, parts of Hungary are experiencing a heatwave. Indeed, temperatures may exceed 32° Celsius during the first leg of the race leaving Budapest.
In terms of thermoregulation, what physiological changes are likely to occur during this leg of the race? Explain how these changes may influence
In: Anatomy and Physiology