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Questions and Answers of
Finance
Calculate the Unit price of each of thefollowing:
Calculating Motor Vehicle Operating Costs: Using Sheet 38 in the Personal Planner calculates the approximate yearly operating cost of the following vehicle.Annual depreciation
Based on the following data, would you recommend buying or renting?Rental CostAnnual rent ...........$7,380Insurance ............ $145Security deposit .......... $650Buying CostAnnual mortgage
Kelly and Tim Brown plan to refinance their mortgage for a lower interest rate. They will reduce their mortgage payment by $83 a month.Their closing cost for refinancing will be $1,670. How long will
Two reading selections from Voltaire’s Candide. The story begins by acknowledging the foolishness of the superstitious traditions held by the people in the city of Lisbon but ends by confirming
Do you think the interest on payday loans is too high or just right? Should Christians charge poor people interest on loans?
Consider a machine that fills soda bottles. The process has a mean of 15.9 ounces and a standard deviation of 0.06 ounces. The specification limits are set between 15.8 and 16.2 ounces.a) Compute
Maryland Technical Acumen (MTA) is considering a new product line which will require an investment in production equipment and facilities in the current year.Below is an Income and cash flow
(a) Find the amplitude, period, and phase shift of y = 3sin[π(x – 1/3)](b) A ladder leans against a verfical wall of a building so that the angle between the ground and the ladder is 72° and its
Suppose that the supply and demand schedules for orange juice in the United States for 2005 is given in the following table:a) Using this information, what is the equation for the demand curve for
Firms often face the problem of allocating an input in fixed supply among different products. Find the optimal crude oil allocation in the proceeding example if the profit associated with fiber were
Explain the effect on the average lives of sequential-pay structures of including an accrual tranche in a CMO structure.
Suppose that $1 billion of pass-throughs is used to create a CMO structure with a PAC bond with a par value of $700 million and a support bond with a par value of $300 million. Answer the question
William’s All Night Long DJ, Inc. has outstanding preferred stock that pays an annual dividend of $6.00 per share.Compute the current price of the preferred stock if the investor’s required
1. Suppose the required rate of return on stock is 11% and the growth rate is 5%. If the current price of stock is $20, then what is the value of D1 (next period's dividend)?2. Suppose the required
What effect does electroconvulsive shock have on memory?
What is the function of the corpus callosum?
Examine how employee benefits have changed in recent years!
Given the structure of the post project review, what do you feel is the most important component? Explain why. What is its benefit to the overall risk process?The ATOM ProcessExcept for the post
Country Products manufactures quilt racks. Pine is introduced in Department 1, where the raw material is cut and assembled. In Department 2, completed racks are stained and packaged for shipment
The time required to complete a certain type of construction project follows a normal distribution with a mean of 60 weeks and a standard deviation of 4 weeks. What is the probability of completing
You are operating an old machine that is expected to produce a cash inflow of $5,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,000 but is
What regulations in the financial sector are likely to grow in the future?
Taylor Corp. is growing quickly. Dividends are expected to grow at a 30 percent rate for the next three years, with the growth rate falling off to a constant 6 percent thereafter.If the required
Youve collected the following information from your favorite financial Web site.1. Find the quote for the Laclede Group. Assume that the dividend is constant.2. What was the highest
J. Marcel Enterprises has gathered projected cash flows for two projects.At what interest rate would the company be indifferent between the twoprojects?
POINT: No. Banks are in the business of providing credit. When economic conditions deteriorate, there will be loan defaults and some banks will not be able to survive.COUNTER-POINT: Yes. If banks
Because your customer went on vacation at year-end, they didn’t get their huge order placed with you. They told you they would place the order in December but the purchasing department left early
Create an original example to demonstrate how an individual or firm acting out of self-interest (seeking profits by offering goods or services in economic markets) must benefit consumers – even if
Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing
In South Carolina Palmetto Cash 5 lottery game, winning the jackpot requires that you select the correct 5 numbers between 1 and 38. How many different ways can those 5 numbers be selected?
Suppose you manage a firm with two production plants. The marginal product of labor at plant 1 is MP1 = 1400 - L1 where L1 is the number of workers employed in plant 1. The marginal product of labor
Suppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The marginal cost is given by
Suppose the government wants to increase the price of a specific agricultural product.Discuss the welfare effects of four possible policies: price floor, price support, production quotaand
ROM a position of potential GDP and zero inflation, suppose there is a sudden and permanent decline in potential GDP. Describe the behaviour of prices, output, interest rates, consumption,
Martin Company reports the following costs and expenses in May.From the information, determine the total amount of:(a) Manufacturing overhead.(b) Product costs.(c) Period costs.
The Tip Top Company has two divisions--Eastern and Western. The divisions have the following revenues and expenses:The management of Tip Top is considering the elimination of the Eastern Division. If
Identify a real-life outsourcing decision that has been made. Identify the specific reasons for the outsourcing. If information is available, discuss the results of the outsourcing decision (jobs
1. Do you think that Ducati's decision to sell exclusively through the Internet its MH900e motorcycle model was a risky decision or a safe bet? Explain.2. Since Italy is the main market for Ducati
The J. S. Bach Foundation is a non-profit charitable institution dedicated to providing musical education to children in elementary schools. There is a provision in the document that created the
According to a survey 71 % of major US companies electronically monitor their employees. Suppose that 480 such companies are selected independently and at random. (a) What is the probability that 341
Why is having reliability important?
Probability Sampling. Four methods include: Simple random, Systematic, Stratified, and Cluster Sampling. When would a particular method(s) be used? All respondents are known. (a) The
Create a Likert scale survey question that would help quantify how a person likes their job. Cooper & Schindler, Ch. 12, pp. p. 299, 301.
The Rutter Nursery Company packages their pine bark mulch in 50-pound bags. From a long history, the production department reports that the distribution of the bag weights follows the normal
Rate, from the best to the worst, each of the sources you indicated in #1 above as being sources you will use in your analysis in terms of its probable reliability. Discuss the steps and/or actions
Hacker Software has 6.2 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 105 percent of par. What is the current yield on the
NYRB sells pillows to retailers for an average of $30 each. The variable cost of each pillow is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total
Homer Inc. Had the following activities during 2012:DIRECT MATERIALS:Beginning inventory ............. $ 20,000Purchases ................ 61,600Ending inventory ............. 10,400Direct
The order that we use to assemble a cake or build a house is important. The same holds true for evaluating an expression in math. We call this the Order of Operations.a. Explain order of operations
You are one of five lead teachers in your preschool. Your director has asked you and the other lead teachers to develop a list of criteria to be used to decide whether themes, projects, and
What is the GAAP definition or accounts receivable?
How can Macy’s corporation apply cultural change to the organization to improve overall growth of the company as a whole?
The average and standard deviation of the amount of Goods and Services tax remitted by performance artists in a twelve month period were $5.042 thous and $1.551 thous respectively. If a sample of 110
Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation.Debt: One thousand bonds were issued five years ago at a
Imagine you are a CPA. A client engages you to determine how best to transfer property and perform services to a corporation in exchange for stock with minimal exposure to taxes and risk of an IRS
You have bought 100 $1,000 10-year government bonds that pay a coupon rate of 10% p.a. (semi-annual compounding). If the market yield is 18% p.a. compounding semi-annually, how much did you spend?
For a patent on a drug three years ago. Despite strong sales ($200 million last year) and a low marginal cost of producing the product ($0.15 per pill), your company has yet to show a profit from
Consider the pricing of a biologic therapy, and use the following information to calculate the cost per QALY and the incremental QALYs per person. Does QALY analysis consider the cost savings from
Dominos pizza is considering entering the marketplace in your community. Conduct a research by conducting a demand analysis and forecast for pizza in order to make a decision whether dominos should
Describes dell's original innovative business model and explain the roles played in it by operations, financial, and strategic levels of control.
Under its original business model, what advantage did Dell gain from its tight control system? What disadvantages is the company now experiencing? Can you pinpoint two or three areas in which
Describe what you think would be an effective new business model for Dell explaining the roles played in it by operations, financial, Strategic, and structural levels of control. In what ways will
The economic, socio cultural and/or environmental benefits that tourism can achieve for the host community far outweigh any negative impacts brought about by tourism.Critically discuss this
First Bailout Savings and Loan has one window open for payments of mortgages. The window opens at 9:00 a.m. and closes at 2:00 p.m. (a customer arriving before 2:00 p.m. will be served even if the
Who were the Somozas? What was their relationship to the United States?
The following overhead data are for a department of a large company.RequiredConstruct a flexible budget performance report that would be useful in assessing how well costs were controlled in
Lindon Company uses 5,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $80,000 as follows:
Assume you have been hired as a managing consultant be a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It
Revenue Recognition" Please responds to the following:•In some situations, revenue is recognized as it is earned in the economic sense. In other situations, a criterion such as the point of sale is
For the longest time, companies offered the employees who stayed with the company for many years a defined pension plan for to help them retire when it was time. That time has since passed and
Calculate a cross-rate matrix for the French franc, German mark, Japanese yen, and the British pound. Use the most current European term quotes to calculate the cross-rates so that the triangular
From base price levels of 100 in 1987, West German and U.S. price levels in 1988 stood at 102 and 106, respectively. If the 1987 $/DM exchange rate was $0.54, what should the exchange rate be in
In early 1996, the short-term interest rate in France was 3.7%, and forecast French inflation was 1.8%. At the same time, the short-term German interest rate was 2.6% and forecast German inflation
In July, the one year interest rate is 12% on British pounds and 9% on U.S. dollars.a.If the current exchange rate is $1.63:£1, what is the expected future exchange rate in one year?b. Suppose a
Suppose that on January 1, the cost of borrowing French francs for the year is 18%. During the year, U.S. inflation is 5%, and French inflation is 9%. At the same time, the exchange rate changes
Assume the interest rate is 16% on pounds sterling and 7% on the Euro. At the same time, inflation is running at an annual rate of 3% in Germany and 9% in England.a. If the Euro is selling at a
Suppose today's exchange rate is $0.62/Euro. The 6-month interest rates on dollars and Euro are 6% and 3%, respectively. The 6-month forward rate is $0.6185. A foreign exchange advisory service has
On January 1, the U.S. dollar: Japanese yen exchange rate is $1 = ¥250. During the year, U.S. inflation is 4% and Japanese inflation is 2%. On December 31, the exchange rate is $1 = ¥235. What
In 1990, General Electric acquired Tungsram Ltd., a Hungarian light bulb manufacturer. Hungary's inflation rate was 28% in 1990 and 35% in 1991, while the forint (Hungary's currency) was devalued 5%
The Edmonton Oilers (Canada) of the National Hockey League are two-time defending Stanley Cup champions. (The Stanley Cup playoff is hockey's equivalent of football's Super Bowl or baseball's World
The shipbuilding industry is facing a worldwide capacity surplus. Although Japan currently controls about 50% of the world market, it is facing severe competition from the South Koreans. Japanese
1. Gizmo, U.S.A. is investigating medium‑term financing of $10 million in order to build an addition to its factory in Toledo, Ohio. Gizmo's bank has suggested the following alternatives: Type
In 1985, Japan Airlines (JAL) bought $3 billion of foreign exchange contracts at ¥180/$1 over 11 years to hedge its purchases of U.S. aircraft. By 1994, with the yen at about ¥100/$1, JAL had
In 1990, a Japanese investor paid $100 million for an office building in downtown Los Angeles. At the time, the exchange rate was ¥145/$1. When the investor went to sell the building five years
The table below shows the tasks required to assemble an aluminum storm door and the length of time needed to complete each task.Suppose a cycle time is 90 seconds(a) Compute the theoretical minimum
Wall Street securities firms paid out record year -end bonuses of $125,500 per employee for 2005. Suppose we would like to take a sample of employees at the Jones & Ryan securities firm to see
In 2008, 46% of business owners gave a holiday gift to their employees. A 2009 survey of business owners indicated that 35% plan to provide a holiday gift to their employees. Suppose the survey
Let X be a normal variable with parameters (2, 4). Show that E(e^4X)=e^40 and calculate the probability density function of the random variable 2(e^4X) when X is a standard normal variable
We have to choose a significance level for a hypothesis test of the effectiveness of a certain medication in preventing a serious life-threatening disease. Research Group A feels that a significance
A financial advisor wants to know if there is a relationship between ING and investment banking. Does ING predict good investments in banking? The results are as follows:Regression StatisticsR Square
The time needed to complete a final examination in a particular college course is normally distributed with a mean of 90 minutes and a standard deviation of 15 minutes. Answer the following
Assume a binomial probability distribution has p = .50 and n = 150.a) What are the mean and standard deviation?b) Is this situation one in which binomial probabilities can be approximated by the
A Florida Beach resort hotel has 150 rooms. In the spring months, hotel room occupancy is approximately 80%.a) What is the probability that at least half of the rooms are occupied on a given day?b)
A popular Restaurant in Tampa, advertises that carryout orders take about 35 minutes. Assume that the time required for a carryout order to be ready for customer pickup has an exponential
The 70-year long-term record for weather shows that for New York State, the annual precipitation has a mean of 39.33 inches and a standard deviation of 4.24 inches. The annual precipitation amount
The following data list worldwide shipments of personal computers (in thousands) according to Dataquest. YearShipments (in
A brand name has a recognition rate of 90%. If the owner of the brand wants to verify this with a small sample of 10 randomly selected consumers find the probability that 9 of the 10 consumers
Analyze the attached data and develop a model that predicts math scores from other scores. Use regression analysis in excel and summarize what the different statistics of the summary output mean.
What does it mean for the trials to be independent in a binomial experiment?
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