## Altex Inc. manufactures two products

Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information.

Car        Truck
Estimated wheels produced        40,500        10,000
Direct labor hours per wheel        1        3

Total estimated overhead costs for the two product lines are \$776,000.

Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. (Round answers to 0 decimal places, e.g. 1,575.)

Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs.

Activity Cost Pools        Expected Use of
Costs
Setting up machines        1,000     setups        \$216,000
Assembling        70,500     labor hours        274,000
Inspection        1,200     inspections        286,000

Compute the activity-based overhead rates for these three cost pools. (Round answers to 2 decimal places, e.g. 12.25.)

Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. (Round answers to 0 decimal places, e.g. 1,575.)

Expected Use of Cost Drivers per Product
Car        Truck
Number of setups        200        800
Direct labor hours        40,500        30,000
Number of inspections        100        1,100

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## The system of federalism was instituted with the writing and authorization

Assignment 2: Federalism

The system of federalism was instituted with the writing and authorization of the Constitution in 1787. In dividing power between states and the national government, federalism has undergone challenges to the placement of power. Should power reside primarily in national or in state government? The Civil War was the most dramatic challenge to the placement of power. Southern states argued, under the leadership of John C. Calhoun, that states’ power superseded national power, while northern states, under the leadership of President Abraham Lincoln, stressed the need for union under the leadership and direction of the national government.

In the more than two hundred years since the Constitution’s adoption, there have been many changes to the meaning of federalism, with power shifting between state and national governments. In the twentieth century, the shifts of power became largely associated with the national government’s ability to provide increased funding sources. With more funding available, the national government has expanded its impact on all areas of state governments. This increased power has had many advocates and many detractors, each with strong justifications.

Research federalism using your textbook, the Argosy University online library resources, and the Internet. paper on federalism. Structure your paper as follows:

Define federalism.
Identify and describe at least two ways in which American federalism has changed since the ratification of the Constitution.
Describe the relationship between contemporary politics and trends in the size and power of the federal government. in Word format. Apply APA standards for writing style to your work.

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## Maibrit’s Bike’s began operations in April 2017 and had the following

Maibrit’s Bike’s began operations in April 2017 and had the following transactions.

a) Owner invested \$120,000 cash and a truck worth \$36,000 in exchange for stock.

b) Paid \$84,000 cash for 6 months’ rent.

c) Purchased \$300,000 of bicycle inventory on credit.

d) Sold bicycles for cash of \$507,000. The cost of the bikes sold was \$180,000.

e) Sold and invoiced bicycles to a client for \$95,400. The cost of the bikes sold was \$48,000.

f) Paid \$90,000 cash for an advertising campaign in connection with Tour de France. The campaign will run over the next two of months.

g) Paid \$24,000 in cash for supplies to have on hand for bike repairs.

h) Collected \$60,000 from accounts receivable.

i) Paid for bikes purchased on credit in Transaction c above.

j) Paid cash dividends of \$3,000.

k) Received \$6,000 cash from a customer as a deposit for a custom bicycle to be built.

Required:  Record each transaction a) through k) in the financial statements effects template, below.

I need to know how each of these transactions will effect the balance sheet and income statement.

Balance sheet: Is it a cash asset, non-cash asset, liability, contributed capital, or earned capital? Does it effect the balance sheet as a positive or negative transaction?

Income statement: Is the transaction considered revenue, expenses, or net income? Does it effect the income statement as a positive or negative transaction?

At the end of April, the following information is available:

i.   At the end of April, \$19,200 supplies remained on hand.

ii.  Rent paid in Transaction b is for a lease that began on April 1.

iii. At the end of April, one-third of the advertising campaign in Transaction f was completed.

iv.  The truck is expected to be used for five years (60 months).

v.  The custom bicycle in Transaction k was built and delivered to the customer on April 30.

Balance sheet: Is it a cash asset, non-cash asset, liability, contributed capital, or earned capital? Does it effect the balance sheet as a positive or negative transaction?

Income statement: Is the transaction considered revenue, expenses, or net income? Does it effect the income statement as a positive or negative transaction?

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## Complete the following income statement for GRISWOLD, Inc

FIN 630 Chapter 4 Problem

Complete the following income statement for GRISWOLD, Inc.  The company is in the 33% tax bracket and they have \$48,000 in assets being depreciated straight line over four years.

2016 INCOME STATEMENT                12/31/16    BALANCE SHEET

SALES            \$79,000            ASSETS                DEBT & LIAB
COGS            \$42,100        Current Assets      \$12,000    Current Liab        \$9,200
S&A Expenses        \$ 8,000        Fixed Assets      \$115,000    L-term Debt        \$98,000
Depreciation        \$______                                   Equity            \$19,800
EBIT            \$
Interest        \$    3,000          Total Assets    \$127,000    Debt & Liab        \$127,000
EBT            \$
Tax             \$______
Net Income
=========

Next year, sales are expected to increase to \$88,000.  Assets (both current and fixed) and COGS are proportional to sales.  Debt and equity are not.  A dividend payout ratio of 60% is employed.  The tax rate remains at 33% and depreciation will stay the same as calculated for 2016 above.

Complete the proforma income statement and balance sheet below.

PROFORMA INCOME STATEMENT            PROFORMA   BALANCE SHEET

SALES            \$88,000            ASSETS                DEBT & LIAB
COGS            \$            Current Assets      \$         Current Liab        \$
S&A Expenses        \$ 8,000        Fixed Assets       \$         L-term Debt        \$
Depreciation        \$______                                   Equity            \$
EBIT            \$
Interest        \$    3,000          Total Assets     \$        Debt & Liab        \$
EBT            \$
Tax             \$______
Net Income
=========

Calculate the EXTERNAL FUNDING NEEDED.

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## A cost that has already been paid, or the liability to pay has already

QUESTION 1

A cost that has already been paid, or the liability to pay has already been incurred, is a(n):

A.erosion cost.
B.net working capital expense.
C.salvage value expense.
D.sunk cost.
E.opportunity cost.

QUESTION 2

A firm’s WACC can be correctly used to discount the expected cash flows of a new project when that project:

A.has the same level of risk as the firm’s current operations.
B.will be financed solely with new debt and internal equity.
C.will be financed with the same proportions of debt and equity as those currently used by the overall firm.
D.will be financed solely with internal equity.
E.will be managed by the firm’s current managers.

QUESTION 3

A project costing \$6,200 initially is expected to produce cash inflows of \$2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of \$3,300. What is the net present value of this project if the required rate of return is 11.3 percent?

A.\$935.56
B.\$3,011.40
C.\$1,980.02
D.\$2,474.76
E. \$2,903.19

QUESTION 4

A project has an initial cost of \$10,600 and produces cash inflows of \$3,700, \$4,900, and \$2,500 for Years 1 to 3, respectively. What is the project’s discounted payback period if the required rate of return is 7.5 percent?

A.never
B.2.88 years
C.2.65 years
D.2.78 years
E.2.94 years

QUESTION 5

A project will increase sales by \$140,000 and cash expenses by \$95,000. The project will cost \$100,000 and will be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34 percent. What is the value of the annual depreciation tax shield?
A.\$17,000
B.\$37,750
C.\$22,500
D.\$8,500
E.\$25,000

QUESTION 6

A proposed project costs \$300 and has cash flows of \$80, \$200, \$75, and \$90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. In dollars, how much will this project return in today’s dollars for every \$1 invested?

A.\$.99
B.\$1.05
C.\$1.01
D.\$1.03
E.\$.97

QUESTION 7

A situation in which accepting one investment prevents the acceptance of another investment is called the:

A.mutually exclusive investment decision.
B.multiple rates of return decision.
C.issues of scale problem.
D.operational ambiguity decision.
E.net present value profile.

QUESTION 8

An analysis of what happens to the estimate of a project’s net present value when you examine a vast number of different likely economic situations is called _____ analysis.

A.forecasting
B.break-even
C.sensitivity
D.scenario
E.simulation

QUESTION 9

An analysis of what happens to the estimate of net present value when only one variable is changed is called _____ analysis.

A.scenario
B.forecasting
C.break-even
D.simulation
E.sensitivity

QUESTION 10

Comparing two otherwise equivalent firms, the beta of the common stock of a levered firm is _______ the beta of the common stock of an unlevered firm.

A.slightly less
B.significantly less
C.roughly equivalent to
D.greater than
E.equal to

QUESTION 11

Custom Cars purchased some \$39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The tax rate is 34 percent. If the assets are sold today for \$19,000, what will be the aftertax cash flow from the sale?

A.\$17,909.09
B.\$19,000.00
C.\$18,904.80
D.\$18,720.00
E.\$16,358.88

QUESTION 12

For a profitable firm, an increase in which one of the following will increase the operating cash flow?

A.depreciation
B.office rent
C.building maintenance
D.equipment rental
E.employee salaries

QUESTION 13

Hall Corp. has 25,000 shares of common stock outstanding with a market price of \$32 a share and an expected dividend yield of 5.7 percent. Dividends increase by 4.2 percent annually. The firm also has \$450,000 of debt outstanding that is selling at 102 percent of par that has a yield to maturity of 6.8 percent. The tax rate is 35 percent. The firm is considering a project that has the same risk level as the firm’s current operations, an initial cost of \$328,000 and cash inflows of \$52,500, \$155,000, and \$225,000 for Years 1 to 3, respectively. What is the NPV of the project?

A.\$46,511
B.\$57,006
C.\$61,492
D.\$48,515
E.\$32,899

QUESTION 14

It will cost \$3,000 to acquire a small ice cream cart. Ice cream sales are expected to be \$1,400 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?

A.0.83 years
B.1.14 years
C.1.83 years
D.2.14 years
E.2.83 years

QUESTION 15

Jack’s Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.6 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for \$40 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 8 percent. Jack’s tax rate is 34 percent. What is Jack’s weighted average cost of capital?

A.10.10%
B.10.43%
C.10.65%
D.11.47%
E.11.39%

QUESTION 16

Jamestown Ltd. currently produces boat sails and is considering expanding its operations to include awnings. The expansion would require the use of land the firm purchased three years ago at a cost of \$142,000 that is currently valued at \$137,500. The expansion could use some equipment that is currently sitting idle if \$6,700 of modifications were made to it. The equipment originally cost \$139,500 six years ago, has a current book value of \$24,700, and a current market value of \$39,000 if sold as is. Other capital purchases costing \$780,000 will also be required. What is the amount of the initial cash flow for this expansion project?

A.\$948,900
B.\$953,400
C.\$963,200
D.\$927,800
E.\$962,300

QUESTION 17

Jamie’s Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 850 units while the Class C camper sales decline to 2,000. The sales of pop-ups will not be affected. Class A motor homes sell for an average of \$140,000 each. Class C homes are priced at \$59,500 and the pop-ups sell for \$5,000 each. The new mid-range camper will sell for \$42,900. What is the erosion (or cannibalization) cost of adding the mid-range camper?

A.\$53,750,000
B.\$63,150,000
C.\$78,750,000
D.\$54,250,000
E.\$46,900,000

QUESTION 18

Kurt’s Cabinets is looking at a project that will require \$80,000 in fixed assets and another \$20,000 in net working capital. The project is expected to produce annual sales of \$110,000 with associated costs of \$70,000 per year. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35 percent. What is the annual operating cash flow for this project?

A.\$13,000
B.\$34,750
C.\$27,000
D.\$33,000
E.\$40,000

QUESTION 19

Lee’s Furniture just purchased \$24,000 of fixed assets that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year?

A.\$4,800
B.\$2,765
C.\$2,507
D.\$4,608
E.\$2,304

QUESTION 20

Matt is analyzing two mutually exclusive projects of similar size. Both projects have 5-year lives. Project A has an NPV of \$18,389, a payback period of 2.38 years, an IRR of 15.9 percent, and a discount rate of 13.6 percent. Project B has an NPV of \$19,748, a payback period of 2.69 years, an IRR of 13.4 percent, and a discount rate of 12.8 percent. He can afford to fund either project, but not both. Matt should accept:

A.Project B based on its NPV.
B.neither project based on their IRRs.
C.Project A because of its IRR.
D.both projects as they both have positive NPVs.
E.Project A because of its payback period.

QUESTION 21

One purpose of identifying all of the incremental cash flows related to a proposed project is to:

A.identify any and all changes in the cash flows of the firm for the past year so they can be included in the analysis.
B.make each project appear as profitable as possible for the firm.
C.isolate the total sunk costs so they can be evaluated to determine if the project will add value to the firm.
D.include both the proposed and the current operations of a firm in the analysis of the project.
E.eliminate any cost which has previously been incurred so that it can be omitted from the analysis of the project.

QUESTION 22

Peter’s Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stock of 8 percent. The firm has 105,000 shares of common stock outstanding at a market price of \$22 a share. There are 25,000 shares of preferred stock outstanding at a market price of \$45 a share. The bond issue has a total face value of \$1.5 million and sells at 98 percent of face value. If the tax rate is 34 percent, what is the weighted average cost of capital?

A.9.22%
B.8.69%
C.8.54%
D.9.45%
E.9.04%

QUESTION 23

Project A is opening a bakery at 10 Center Street. Project B is opening a specialty coffee shop at the same address. Both projects have unconventional cash flows, that is, both projects have positive and negative cash flows that occur following the initial investment. When trying to decide which project to accept, given sufficient funding to accept either, you should rely most heavily on the _____ method of analysis.

A.net present value
B.discounted payback
C.internal rate of return
D.payback
E.profitability index

QUESTION 24

Samson’s purchased a lot four years ago at a cost of \$398,000. At that time, the firm spent \$289,000 to build a small retail outlet on the site. The most recent appraisal on the property placed a value of \$629,000 on the property and building. Samson’s now wants to tear down the original structure and build a new strip mall on the site at an estimated cost of \$2.3 million. What amount should be used as the initial cash flow for the new project?

A.\$2,300,000
B.\$2,058,000
C.\$2,929,000
D.\$2,242,000
E.\$2,987,000

QUESTION 25

Tech Enterprises is considering a new project that will require \$325,000 for fixed assets, \$160,000 for inventory, and \$35,000 for accounts receivable. Accounts payable and accruals are expected to increase by \$100,000 in total. The project has a 5-year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 25 percent of their original cost and the net working capital will return to its original level before the project. The project is expected to generate annual sales of \$554,000 and costs of \$430,000. The tax rate is 35 percent and the required rate of return is 15 percent. What is the net present value of this project?

A.\$6,202.48
B.−\$2,318.29
C.\$4,138.25
D.−\$65.83
E.\$3,026.45

QUESTION 26

The Adept Co. is analyzing a proposed project. The company expects to sell 3,100 units, give or take 5 percent. The expected variable cost per unit is \$9 and the expected fixed costs are \$10,500. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is \$4,000. The sale price is estimated at \$18 a unit, give or take 3 percent. What is the sales revenue under the most optimistic case scenario?

A.\$59,208.92
B.\$62,408.15
C.\$57,474.00
D.\$60,347.70
E.\$58,590.00

QUESTION 27

The By-Way Co. has sales of \$435,000, costs of \$254,000, depreciation of \$35,000, interest expense of \$22,000, and taxes of \$43,400. What is the amount of the company’s operating cash flow?

A.\$322,100
B.\$157,900
C.\$114,340
D.\$115,600
E.\$137,600

QUESTION 28

The Galley Inc. purchased some 3-year MACRS property two years ago at a cost of \$19,800. The MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent. The firm no longer uses this property so is selling it today at a price of \$13,500. What is the amount of the pretax profit on the sale?

A.\$9,098.46
B.\$11,140.48
C.\$8,016.67
D.\$10,702.40
E.\$10,500.00

QUESTION 29

The changes in a firm’s future cash flows that are a direct consequence of accepting a project are called the project’s _____ cash flows.

A.opportunity
B.net present value
C.stand-alone
D.incremental
E.erosion

QUESTION 30

Other things remaining the same, the internal rate of return (IRR) for a project will increase if:

A.the initial cost of the project can be reduced.
B.the discount rate is increased.
C.each cash inflow is moved such that it occurs one year later than originally projected.
D.the total amount of the cash inflows is reduced.
E.the required rate of return is reduced.

QUESTION 31

The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the:

A.payback period.
B.profitability index.
C.cash period.
D.net working capital period.
E.discounted payback period.

QUESTION 32

The primary reason that company projects with positive net present values are considered acceptable is that:

A.they create value for the owners of the firm.
B.the required cash inflows exceed the actual cash inflows.
C.they return the initial cash outlay within three years or less.
D.the project’s rate of return exceeds the rate of inflation.
E.the investment’s cost exceeds the present value of the cash inflows.

QUESTION 33

Thornley Machines is considering a 3-year project with an initial cost for fixed assets of \$618,000. The project will reduce operating costs by \$265,000 a year. The equipment will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the equipment will be sold for an estimated \$60,000. The tax rate is 34 percent. The project will require \$23,000 in extra inventory at the beginning of its life. What is the NPV if the discount rate assigned to the project is 14 percent?

A.−\$2,646.00
B.−\$32,593.78
C.−\$30,086.23
D.\$16,884.40
E.\$43,106.54

QUESTION 34

Walks Softly sells customized shoes. Currently, it sells 14,800 pairs of shoes annually at an average price of \$59 a pair. It is considering adding a lower-priced line of shoes that will be priced at \$39 a pair. Walks Softly estimates it can sell 6,000 pairs of the lower-priced shoes but will sell 3,500 less pairs of the higher-priced shoes by doing so. What annual sales revenue should be used when evaluating the addition of the lower-priced shoes?

A.\$900,700
B.\$27,500
C.\$31,300
D.\$24,000
E.\$234,000

QUESTION 35

What is the cost of equity for a firm that has a beta of 1.2 if the risk-free rate of return is 2.9 percent and the expected market return is 11.4 percent?

A.13.6%
B.10.8%
C.13.1%
D.12.8%
E.16.6%

QUESTION 36

What is the net present value of a project with an initial cost of \$36,900 and cash inflows of \$13,400, \$21,600, and \$10,000 for Years 1 to 3, respectively? The discount rate is 13 percent.

A.−\$287.22
B.−\$1,350.49
C.\$204.36
D.\$797.22
E.−\$1,195.12

QUESTION 37

When computing the weighted average cost of capital, which of these are adjusted for taxes?

A.the costs of all forms of financing
B.cost of equity
C.both the cost of equity and the cost of preferred stock
D.cost of debt
E.cost of preferred stock

QUESTION 38

Wilson’s Market is considering two mutually exclusive projects that will not be repeated. The required rate of return is 13.9 percent for Project A and 12.5 percent for Project B. Project A has an initial cost of \$54,500, and is expected to produce net cash flows of \$16,400, \$28,900, and \$31,700 for Years 1 to 3, respectively. Project B has an initial cost of \$69,400, and is expected to produce net cash flows of \$0, \$48,300, and \$42,100, for Years 1 to 3, respectively. Which project, or projects, if either, should be accepted and why?

A.neither project; because neither has an NPV equal to or greater than its initial cost
B.Project A; because its NPV is positive and greater than Project B’s NPV
C.Project B; because it has a negative NPV which indicates acceptance
D.Project A; because it has the higher required rate of return
E.Project B; because it has the largest total cash inflow

QUESTION 39

You spent \$500 last week fixing the transmission in your car. Now, the brakes are acting up and you are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the \$500 you spent fixing the transmission is a(n) _____ cost.

A.relevant
B.fixed
C.incremental
D.opportunity
E.sunk

QUESTION 40

A company’s perpetual preferred stock currently sells for \$92.50 per share, and it pays an \$8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm’s cost of preferred stock?

A.9.56%
B.7.81%
C.9.10%
D.8.65%
E.8.22%

QUESTION 41

As the winner of a contest, you are now CFO for the day for Maguire Inc. and your day’s job involves raising capital for expansion. Maguire’s common stock currently sells for \$45.00 per share, the company expects to earn \$2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate in dividends is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. What is the company’s cost of newly issued equity?

A.10.28%
B.11.56%
C.10.65%
D.9.19%
E.8.84%

QUESTION 42

Kenny Electric Company’s bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of \$1,075, and has a par value of \$1,000. If the firm’s tax rate is 40%, what is its after-tax cost of debt?

A.4.23%
B.2.54%
C.5.08%
D.8.47%
E.4.58%

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## The constitutional rights guaranteed in the Bill of Rights are most highly

Assignment 2: Constitutional Rights

The constitutional rights guaranteed in the Bill of Rights are most highly protected during the trial stage of a criminal proceeding. This is when the adversarial process, which characterizes the U.S. criminal justice process, is at its peak. Analyze and evaluate the steps which would bring an individual to trial beginning with the arrest phase of the process.

Identify and discuss the four (4) elements of arrest.
Identify and discuss the four (4) requirements for search and seizure with a warrant.
Explain the various aspects of the plain view doctrine.
Compare and contrast the various means of identifying suspects.
Summarize the basic constitutional rights of the accused during trial.
Use at least four (4) quality references. Note: Wikipedia and other Websites do not qualify as academic resources

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## Your investment club has only two stocks in its portfolio

1. Your investment club has only two stocks in its portfolio; \$9,620 is invested in a stock with a beta of 0.67, and \$36,160 is invested in a stock with a beta of 1.38. What is the portfolio’s beta?

2. AA Industries’s stock has a beta of 2.40. The risk-free rate is 2.15%, and the expected return on the market is 12.90%. What is the required rate of return on AA’s stock?

3. Assume that the risk-free rate is 3.80% and that the market risk premium is 10.40%.

What is the required return on the market?

4. Assume that the risk-free rate is 4.05% and that the market risk premium is 10.60%.

What is the required rate of return on a stock with a beta of 1.20?

5. A stock’s return has the following distribution:

Demand for the

Company’s Products

Probability of This

Demand Occurring

Rate of Return if This

Demand Occurs (%)

Weak

0.14

-36.75%

Below average

0.15

-9.15%

Average

0.39

18.20%

Above average

0.18

27.85%

Strong

0.14

50.15%

Calculate the stock’s standard deviation or returns.

Work with at least four decimal places and round your final answer to two decimal places.

6. The market and Stock J have the following probability distributions:

Probability

Rm

Rj

0.29

10.65%

25.80%

0.44

5.87

10.48

0.27

20.00

32.13

(a) Calculate the expected rates of return for the market and (b) Calculate the standard deviations for the Stock J.

Work with at least four decimal places and round your final answers to two decimal places.

7. Suppose you manage a \$4,298,900 fund that consists of four stocks with the following investments:

Stock

Investment

Beta

A

\$150,450

1.80

B

\$281,000

-0.78

C

\$1,473,050

2.85

D

\$2,394,400

0.98

If the market’s required rate of return is 9.85% and the risk-free rate is 5.20%, what is the fund’s required rate of return?

Work with four decimal places and round your final answer to two decimal places.

8. Stock R has a beta of 0.85, Stock S has a beta of 1.23, the expected rate of return on an average stock is 11.30%, and the risk-free rate is 4.10%. By how much does the required return on the riskier stock exceed that on the less risky stock?

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## If we are testing for the difference between the means of two

Q1. If we are testing for the difference between the means of two (2) independent populations with samples n1 = 20 and n2 = 20, the number of degrees of freedom is equal to

a. 39.
b. 38.
c. 19.
d. 18.

Q2. Given the following information, calculate the degrees of freedom that should be used in the pooled-variance t test:

s12 = 4 and n1 = 16

s22 = 6 and n2 = 25
a. df = 41
b. df = 39
c. df = 16
d. df = 25

Q3. A supermarket is interested in finding out whether the mean weekly sales volume of Coca-Cola are the same when the soft drinks are displayed on the top shelf and when they are displayed on the bottom shelf. Ten stores are randomly selected from the supermarket chain with 5 stores using the top shelf display and 5 stores using the bottom shelf display. Assume that the samples are normally distributed with equal population variances. Refer to the sales volume data in the table below, what is the number of degree of freedom?

Top Shelf Sales Volume    23    35    50    68    32
Bottom Shelf Sales Volume    55    70    72    51    63

a. 8
b. 3
c. 10
d. 12

Q4. A supermarket is interested in finding out whether the mean weekly sales volume of Coca-Cola are the same when the soft drinks are displayed on the top shelf and when they are displayed on the bottom shelf. Ten stores are randomly selected from the supermarket chain with 5 stores using the top shelf display and 5 stores using the bottom shelf display. Assume that the samples are normally distributed with equal population variances. Refer to the sales volume data in the table below, What are the critical values using a level of significance alpha=.01?

Top Shelf Sales Volume    23    35    50    68    32
Bottom Shelf Sales Volume    55    70    72    51    63

a. +2.7638 and -2.7638
b. +2.8965 and -2.8965
c. +3.3554 and -3.3554
d. +4.5407 and -4.5407

Q5. A supermarket is interested in finding out wheather the mean weekly sales volume of Coca-Cola are the same when the softdrinks are displayed on the top shelf and when they are displayed on the bottom shelf. 10 stores are randomly selected from the supermaket chain with 5 stores using the top shelf display and 5 stores using the bottom shelf display. Assume that the samples are normally distributed with equal population variances. Refere to the sales volume data in the table below, Top shelf Sales Mean=41.6, Variance=249.84, Bottom shelf sales Mean=62.2, Variance=66.96.

What is the sample pooled variance Sp2?

Top Shelf Sales Volume    23    35    50    68    32
Bottom Shelf Sales Volume    55    70    72    51    63

a. 158.4
b. 11.995
c. 0
d. -11.995

Q6. A supermarket is interested in finding out whether the mean weekly sales volume of Coca-Cola are the same when the soft drinks are displayed on the top shelf and when they are displayed on the bottom shelf. 10 stores are randomly selected from the supermarket chain with 5 stores using the top shelf display and 5 stores using the bottom shelf display. Assume that the samples are normally distributed with equal population variances. Refer to the sales volume data in the table below, Top shelf Sales Mean=41.6, Variance=249.84, Bottom shelf sales Mean=62.2, Variance=66.96.

What is the t-test statistic?

Top Shelf Sales Volume    23    35    50    68    32
Bottom Shelf Sales Volume    55    70    72    51    63

a. -2.588
b. -9.405
c. 9.405
d. 2.13

Q7. When testing for the difference between the variances of two population with sample sizes of n1= 8 and n2= 10, the number of degrees of freedom is(are):
a. 8 and 10.
b. 7 and 9.
c. 18.
d. 16.

Q8. If we are testing for the difference between the means of two (2) related populations with samples of n1 = 20 and n2 = 20, the number of degrees of freedom is equal to

a. 39.
b. 38.
c. 19.
d. 18.

Q9. In testing for the differences between the means of two related populations, we assume that the differences follow a _______ distribution.
a. normal
b. odd
c. sample
d. population

Q10. The objective of Analysis of Variance (ANOVA) is to analyze differences among the group means.
a. true
b. false

Q11. The F test used for testing the difference in two population variances is always a one-tailed test.
a. true
b. false

Q12. In testing for the differences between the means of two independent populations, we assume that the 2 populations each follow a _______ distribution.
a. sample
b. normal
c. odd
d. experiment

Q13. The statistical distribution used for testing the difference between two population variances is the ___ distribution.
a. t
b. standardized normal
c. binomial
d. F

Q14. One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced. The quality control department wants to find out whether there is a relationship between years of experience and defect rate. A defect rate in terms of High, Average or Low is calculated for each worker in a yearly evaluation. The results for 100 workers based on years of experiences are given in the table below.

Referring to the Table below, at alpha =0.05 level of significance, what would be the decision rule?

<1 Year    <1-4 Year    <5-9 Year
High    6    9    9
Average    9    19    23
Low    7    8    10

a. Reject H0 if chi-square > 16.919
b. Reject H0 if chi-square > 15.507
c. Reject H0 if chi-square > 11.143
d. Reject H0 if chi-square > 9.488

Q15. If we use the chi-square method of analysis to test for the differences among 4 proportions, the degrees of freedom are equal to:
a. 3
b. 4
c. 5
d. 1

Q16. The Marascuilo procedures allows one to make comparisons between all pairs of group to figure out which of the population proportions differ.
a. true
b. false

Q17. A test for the difference between two proportions can be performed using the chi-square distribution.
a. true
b. false

Q18. When testing for independence in a contingency table with 3 rows and 4 columns, there are________ degrees of freedom.
a. 5
b. 6
c. 7
d. 12

Q19. One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced. The quality control department wants to find out whether there is a relationship between years of experience and defect rate. A defect rate in terms of High, Average or Low is calculated for each worker in a yearly evaluation. The results for 100 workers based on years of experiences are given in the table below.

Referring to the Table below, which test would be used to properly analyze the data in this experiment to determine whether there is a relationship between defect rate and years of experience?

<1 Year    <1-4 Year    <5-9 Year
High    6    9    9
Average    9    19    23
Low    7    8    10

a. chi-square test for independence
b. chi-square test for differences between two proportions (independent samples)
c. chi-square test for differences between two proportions (related samples)
d. chi-square test for differences among more than two proportions

Q20. A study published in the American Journal of Public Health was conducted to determine whether the use of seat belts in motor vehicles depends on ethnic status in San Diego County. A sample of 792 children treated for injuries sustained from motor vehicle accidents was obtained, and each child was classified according to (1) ethnic status (Hispanic or non-Hispanic) and (2) seat belt usage (worn or not worn) during the accident. Referring to the Table below, at 5% level of significance, the critical value of the test statistic is

Hispanic    Non-Hispanic
Seat belts worn    31    148
Seat belts not worn    283    330

a. 3.8415
b. 5.9914
c. 9.4877
d. 13.2767

Q21. In testing the difference between two proportions using the normal distribution, we may use either a one-tailed Chi-square test or two-tailed Z test.
a. true
b. false

Q22. As the number of degrees of freedom increases, the chi-square distribution becomes
a. progressively more symmetrical
b. progressively more right-skewed
c. progressively more left-skewed
d. The shape is not affected by the degrees of freedom.

Q23. The squared difference between the observed and theoretical frequencies should be large if there is no significant difference between the proportions.
a. true
b. false

Q24. If we wish to determine whether there is evidence that the proportion of successes is the same in group 1 as in group 2, the appropriate test to use is
a. the Z test.
b. the chi-square test.
c. Both of the above.
d. None of the above.

Q25. In testing a hypothesis using the chi-squared test, the expected frequencies are based on the
a. assumption the null hypothesis is true: the proportion of successes in the two populations are equal.
b. the null hypothesis is false: the proportion of successes in the two populations are not equal.
c. normal distribution.
d. None of the above.

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## Businesses and organizations are focusing on developing Internet systems

Internet Systems Technologies

Businesses and organizations are focusing on developing Internet systems to provide value to their customers and staff. There are many software technologies available to internet systems development teams including; SOAP, HTML, JSON, XML, CSS, ASP.NET, Objective C, php, JAVA™, Python, Ruby, AJAX, Swift™, AngularJS, Bootstrap, jQuery, R, and many more.

Explain using four to five pages Comparing and contrasting HTML, CSS and HTML of these three internet systems development technologies. Also explain the following in your explanation: (please include references)

why an Internet systems developer might choose one technology over another technology.
how these technologies can bring value to the business or organization.

Submit your paper as a Microsoft® Word document to the Assignment Files tab.

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## For the publicly traded clothing store called White House Black

For the publicly traded clothing store called White House Black Market Inc, calculate an estimate of its stock price. At a minimum, your model should include:

A calculation of the fully-diluted shares outstanding using the Treasury Stock Method (TSM).
A five-year projection of its free cash flows (FCF). Your forecast assumptions should be based off of your reading of background material related to White House Black Market
Valuation estimates using “comparable firm (for example New York and Company, Loft, Anne Taylor) analysis” and “precedent transactions analysis”
A valuation estimate based using a discounted cash flow (DCF) analysis. This should include:
A sophisticated calculation of  WHBM’s weighted average cost of capital (WACC)
Terminal Value estimates using the discounted cash flow (DCF) method and exit multiple method (EMM).
Data tables to show the sensitivity of your stock price estimate to changes in the terminal growth assumptions
Build a valuation summary table and football field graph to present your estimated values.

Background on company.

White House | Black Market, Inc. owns and operates women clothing and accessories boutiques in the United States and Canada. The company sells work wear, casual wear, suiting, pants, jackets, skirts, dresses, tops, petites, and jeans, as well as clothing for weddings and events; shoes, bags and accessories, belts, scarves, sunglasses, bridesmaids accessories, and gifts and gift cards; and jewelry, including bridesmaids jewelry, delicates, necklaces, bracelets, and earrings. It also sells products online. The company was founded in 1985 and is based in Fort Myers, Florida. As of July 2003, White House | Black Market, Inc. operates as a subsidiary of Chico’s FAS Inc.

Here’s the SOLUTION

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