1. The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to grow at the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

1. The output of an economy is characterized by a Cobb-Douglas production function with constant return to scale and an output elasticity with respect to capital equal to 0.3. Also given are the following parameters: 30% saving rate, 5% depreciation rate, 2% population growth rate, and the technology factor is 2.

a). Find the capital-labour ratio, and also the output, consumption and investment on a per capita basis in the steady state equilibrium.

b). Is a government policy that raises the saving rate to 40% socially desirable? Explain your answer with reference to a comparison of this new steady state equilibrium and the initial steady state equilibrium in a) above.

c). If the initial capital-labour ratio is 30, is the economy operating efficiently in the sense that welfare cannot be improved? Explain concisely. What if the initial capital-labour ratio is 15? Again explain concisely.

The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to grow at the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

Jessica has a margin account in which she deposits $300,000 (Equity). Assume that the initial margin requirement is 50% and that the margin maintenance is 15%. Jessica is planning to invest (long) in Ford stock which is currently selling at $40/share. a) Show that Jessica could purchase 15,000 shares, using the maximum allowable margin. b) Assume that the broker charges 5% annual interest rate, assume that the broker's fees are 0.3% of the total amount paid for the purchase and received upon the sale. A year later Jessica receives $1 per share dividend and sells the stock for $45/share. What is the rate of return on her investment? c) Will Jessica receive a margin call if the price of the Ford stock falls during the year to 19$/share? Justify

It is thought that prehistoric Indians did not take their best tools, pottery, and household items when they visited higher elevations for their summer camps. It is hypothesized that archaeological sites tend to lose their cultural identity and specific cultural affiliation as the elevation of the site increases. Let x be the elevation (in thousands of feet) for an archaeological site in the southwestern United States. Let y be the percentage of unidentified artifacts (no specific cultural affiliation) at a given elevation. Suppose that the following data were obtained for a collection of archaeological sites in New Mexico:

What percentage of the variation in y can be explained by the corresponding variation in x and the least-squares line?

Group of answer choices

2.6%

0.3%

94.8%

0.1%

97.4%

Use the following information for questions 36-48

Transcendent Technologies is deciding between developing a complicated thought-activated software, or a simple voice-activated software. Since the thought-activated software is complicated, it only has a 30% chance of actually going through to a successful launch, but would generate revenues of $50million if launched. The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million. The complicated technology costs 10million, whereas the simple technology costs 2million.

​If the simplified version costs $2 million and its probability of success is 75%, whereas the cost of the complicated version is $10million, what is the minimum probability of success for the complicated version that would make the firm indifferent between the two software?

A. Bree and Kendra love to go to the movies. When they go, there is a probability of 0.3 that Bree will buy popcorn. The probability that Kendra will buy popcorn is 0.35 if Bree buys popcorn and 0.65 if Bree does not. When Bree and Kendra go to the movies together, find the probability that

1. both buy popcorn;
2. neither buys popcorn;
3. exactly one of them buys popcorn;

B. Carmelita accompanies Bree and Kendra to the movies sometimes. During these trips, the probability that Carmelita buys popcorn is 0.55 if both Bree and Kendra buy popcorn and 0.4 if exactly one of Bree and Kendra buys popcorn. When Bree, Kendra, and Carmelita go to the movies together, find the probability that

4. all three buy popcorn;

5. Kendra and Carmelita buy popcorn, but Bree does not;

Looking to compare, thanks.

A) Allocate the two support departments' costs to the two operating departments using the following methods?

Direct Method
Step-down method (Allocate AS first)
Step -down method (Allocate IS first)

B) Compare and Explain differences in the support department costs allocated to each operating department?

C) What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method?

A spring is mounted over an air track in such a way that the one end of the spring is fixed and the other is connected to a spring scale. When the spring is stretched to 0.01 m a force of 1 N is registered on the spring scale. The spring is relaxed and a glider of 0.43 kg (resting on the air track) is connected to it. The glider-spring system is then pulled to the right through a distance of 0.01 m. Calculate the following:

(a) The spring constant k. (1 mark)

(b) The period of motion. (1 mark)

(c) The angular frequency. (1 mark)

(d) Calculate the amplitude and phase angle of the spring-glider system, if the initial velocity and position of the glider is 0.3 m/s and 0.72 m, respectively.

(e) Utilize all the information already calculated and set up equations for the displacement, velocity and acceleration as function of time.

1. The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to growat the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%