Questions
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co


The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co: 

Salaries:
Deductions:
Sales salaries$330.000Income tax withheld$117.200
Warehouse salaries184,000U.S.savings bonds14.520
Office sales146,000Group insurance11,880

$660,000

Tax rates assumed:

Social security6%State unemployment(employer only) 5.4%
Medicare1.5%Federal unemployment(employer only) 0.8%

1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):

 a. December 30, to record the payroll 

b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. or the total payroll for the last week of the year, $33,000 is subject to unemployment compensation taxes


In: Accounting

Consider an economy described as follows:Y = C + I + GC = 100...

Consider an economy described as follows:

Y = C + I + G

C = 100 + 0.8 (Y - T)

I = 200 - 50r

Assume that G and T are given, r is the real interest rate. Note: parts (c) and (d) are independent of each other.

  1. (5 points) What are endogenous and exogenous variables in the economy?

  2. (10 points) If taxes increase by 200, calculate the change in private saving, public saving, and national saving. (Your answers should be numbers).

  3. (10 points) Now assume that saving does not depend on the real interest rate and G = 1,500; T = 300; Y = 5,000. Find the equilibrium interest rate. Graph the market for loanable funds.

  4. (10 points) Now assume that saving depends on the real interest rate according to this following function: S = 100 + 30r.Find the equilibrium interest rate. Graph the market for loanable funds.

In: Economics

3. The market portfolio expected return is 8% and its standard deviation is 16%. The risk-free...

3. The market portfolio expected return is 8% and its standard deviation is 16%. The risk-free rate is 1%. Assume that the CAPM holds. What is the standard deviation of the portfolio that invests 40% in the risk-free asset and 60% in the market? A. 8.1%. B. 9.6%. C. 10.5%. D. 11.1%. (use financial calculator)

4. The beta of company XYZ’s stock is 2. The annual risk-free rate is 2% and the market portfolio’s expected return is 9%. What is the expected return of the company’s stock? (use financial calculator) A 16% B.20% C.14 D.17%

5. The stock ABC has a beta of 1.6 and its standard deviation is 30%. Its correlation coefficient with the market return is 0.8. What is the standard deviation of the market return?(use financial calculator)

  1. 18%.
  2. 15%.
  3. 20%.
  4. None of the answers is correct

In: Finance

a) Which ONE of the following statements underpins the rationale behind the CAPM method of estimating the cost of equity?

a) Which ONE of the following statements underpins the rationale behind the CAPM method of estimating the cost of equity?



Only unique risk is rewarded.



Only market risk is rewarded as unique risk can be diversified away.



Only unsystematic risk is rewarded as it cannot be diversified away.



Only diversifiable risk is rewarded as it affects total risk.

b)

Which of the following statements are FALSE.



Investors prefer diversified portfolios because they are less risky.



Diversification with a large number of securities completely eliminates risk



The risk of a well diversified portfolio depends on the unique risk of the individual stocks.



For a well-diversified portfolio, only market risk matters

c) A firm has a beta of 0.8, the relevant market return is 12% and the risk free rate is 3%. What is the cost of equity for the firm? Express your answer as a percentage rounded to 2 decimal places, eg. 5.55.

In: Finance

Suppose that the average number of equipment breakdowns at a factory per week is 5. Later...

Suppose that the average number of equipment breakdowns at a factory per week is 5. Later we’ll show that the average is our best guess at the expected value of ? = ?ℎ? ?????? ?? ????????? ?????????? ?? ? ????? ???? (assuming that this distribution stays the same across multiple weeks.) It’s also known that, through some other sample statistic, that our best guess at the standard deviation of X given the data is 0.8. a. With the help of our boy Chebyshev, find an interval such that we can be at least 90% that the number of breakdowns next week will fall within that range. b. Suppose that the supervisor promises the board of directors that the number of breakdowns will rarely exceed 8 in a one- week period. Is the supervisor safe in making this claim? Why or why not? c. Google Chebyshev and just stare at this guy’s magnificent beard for a few seconds. You don’t need to write anything down. You’re welcome.

In: Statistics and Probability

Complete parts​ (a) and​ (b) below. The number of dogs per household in a small town...

Complete parts​ (a) and​ (b) below.

The number of dogs per household in a small town

(a) Find the​ mean, variance, and standard deviation of the probability distribution.

Find the mean of the probability distribution.

u=___(Round to one decimal place if needed)

Find the variance of the probability distribution.

o2=___(round to one decimal place if needed)

find the standard deviation of the probability distribution

o=____(round to one decimal place when needed)

(b) Interpret the results in the context of the​ real-life situation.

A) a household on average has 0.5 dogs with a standard deviation of 0.9 dogs

B. A household on average has

0.5

dog with a standard deviation of

eleven

dogs.

C. A household on average has

0.9

dog with a standard deviation of

0.5

dog.

D.

A household on average has

0.8

dog with a standard deviation of

0.9

dog.

.9

In: Statistics and Probability

F. Pierce Products Inc

F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows:

F. Pierce Products Inc. is considering changing its capital structure.

F. Pierce uses the CAPM to estimate its cost of common equity, rs and at the time of the analysis the risk-free rate is 5%, the market risk premium is 6%, and the company's tax rate is 40%. F. Pierce estimates that its beta now (which is "unlevered" because it currently has no debt) is 0.8. Based on this information, what is the firm's optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure?

 

 

In: Accounting

An ultrasound machine in a hospital uses a sound source at 19.00000MHz. Assuming that the speed...

An ultrasound machine in a hospital uses a sound source at 19.00000MHz.

  1. Assuming that the speed of the ultrasound in the body is same as water (1440 m/s), determine the wavelength in the body.
  2. If blood cells are moving towards the sound source at a speed of 0.8 m/s, at what frequency do the crests of the sound wave pass through the blood cell?
  3. What is the frequency of the sound waves reflected back towards the source by the blood cells?
    1. If the sound level intensity is 17.0 dB at a point d1 = 6.8 cm from the source, what is the sound intensity at that point in W/m2. (We can assume that 0 dB is referenced to 10-12 W/m2).
    2. Assume that sound is emitted from a point source, so that the intensity decreases quadratically with distance. What is the intensity level in dB at a point d2 = 2.0cm from the source?

In: Physics

A certain soccer player has made 80% of her penalty shots over her professional career. She...

A certain soccer player has made 80% of her penalty shots over her professional career. She is injured, but recovers. On her return, she only makes 5 of her first 10 penalty shots.

  1. Assuming she is actually just as good at penalty shots as she was before her injury and each shot is independent of each other shot, calculate the probability of her making exactly 5 out of 10 penalty shots.

  2. Calculate the probability of her making 5 or fewer penalty shots out of 10, assuming she is still an 80% shooter.

  3. The previously calculated value could be thought of as the p-value for a hypothesis test. The null hypothesis for this test is H0: p=0.8. Define p in context and write the alternative hypothesis for this test.

  4. What conclusion would you draw about the soccer player’s penalty shot ratio?

In: Statistics and Probability

Assume an economy where there are no supply constraints and where businesses want to invest 15...

Assume an economy where there are no supply constraints and where businesses want to invest 15 billion; government collects 20 billion in income taxes and also spends 20 billion; next exports are -5 billion; autonomous consumption is 10 billion; and the MPC is 0.8

a) Write out the Aggregate Expenditure function and calculate the equilibrium level of income.

b Now assume that the government increases both taxes and expenditures by 25 percent. What happens to the equilibrium level of income?

8)A math course has 3 tests during the semester and a test. Each test counts for 20 percent of the course grade, and the test counts for 40 percent of the course grade. JJ has scored 50 out of 100 in each of the 3 tests. What grade does JJ need to get in the test (score out of 100) in order to reach the score of 60 for the whole course?

In: Economics