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Business Math

Stocks and Options Options: Black-Scholes

Please help with the following problem. Provide the solution in Excel. Consider the following. You hold an American call on company S that will expire in one year. The stock is currently priced in the market at 100. and your exercise price is 75. In six months tile cmpan will spin-off one of its subsidiaries. B. Note that ti

Determining the Risk Premium and Capital Asset Pricing Model

Suppose Intel stock has a beta of 2.16, whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock, according to the CAPM?

Logistics - Transport Strategy

1. A traffic manager has two options in scheduling a truck to make multiple pickups and deliveries. The pick-up delivery problem is shown pictorially in figure 6-11. The traffic manager can ship the accumulated volumes as single shipments between the designated points or can use the stop-off privilege at $25 per stop for any

Accounting

Identify one or more control procedures (either general or application controls, or both) that would guard against each of the following errors or problems. Leslie Thomas, a secretary at the university, indicated that she had worked 40 hours on her regular time card. The university paid her for 400 hours worked that week. Th

project plan constructed

An auto plant costs $100 million to build but can produce a new line of cars that will produce cash flows with a present value of $140 million if the line is successful, but only $50 million if it is unsuccessful. You believe that the probability of success is only about 50 percent. A) Would you build the plant? B) Suppose

Dividend Yield and Equity Cost of Capital

Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital?

Statistics: Hypothesis, Probability, Decision Rule

These are the instructions for these problems. All text problem assignments must include the problem statement, calculations, formulas, and your method of analysis. Problems should be done in excel - copied and paste into word doc. 8.48 A sample of 20 pages was taken without replacement from the 1,591-page phone director

Flexible Budget

The flexible budget at the 70,000-unit and the 80,000-unit levels of activity is shown below. 70,000 Units 80,000 Units 90,000 Units Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,400,000

Cash register tape shows cash sales of $3,000 and sales taxes

A cash register tape shows cash sales of $3,000 and sales taxes of $150. The journal entry to record this information is..... I am not majoring in accounting and have never taken accounting classes so I am really not sure about how to do all of this accounting entries.....can you help? (a) cash

Hypothesis Testing: Normal and Independent

In a one-tailed test A. The rejection region is in one of the tails. B. The rejection region is split between the tails. C. The p-value is always less than the significance level. D. The p-value is always more than the significance level. To conduct a one sample test of means and use the z distribution as the test sta

Accounting: Horizontal Analysis

Comparative information taken from the Fogerty Company financial statements is shown below 2007 2006 (a) Accounts receivable $175,000 140,000 (b) Retained earnings $ 30,000 (40,000) (c) Sales 855,000 750,000 (d) O

Shareholder's / Treasury Stock

As of December 31, 2006, Warner Corporation reported the following: Dividends payable 20,000 Treasury Stock 600,000 Paid-in capital-share repurchase 20,000 Other paid-in capital accounts 4,000,000 Retained earnings 3,000,000 During 2007, hal

Corporations / Shareholder's

1. The net assets of a corporation equal to: A. Contributed capital. B. Retained earnings. C. Shareholders' equity. D. None of the above. 2. The corporate charter sometimes is known as (a): A. Articles of incorporation. B. Statement of organization. C. By-laws. D. Registration statement. 3. The preemp

Decision analysis interpretation.

I need help solving Problem 3-22, Problem 3-40 and Problem 3-42 in the attached file 3-22 In Problem 3-21 you helped Allen Young determine the best investment strategy. Now, Young is thinking about paying for a stock market newsletter. A friend of Young said that these types of letters could predict very accurately whether th

Prepare a stockholder's equity section...Financial Accounting

PROBLEM #1 Prepare a stockholders' equity section. Financial Accounting E11-8 Wells Fargo & Company, headquartered in San Francisco, is one of the nation's largest financial institutions. It reported the following selected accounts (in millions) as of December 31, 2004. Retained earnings $27,143 Preferred stock 270 Co

Tucker Drillin Corp. Plans to Borrow

Tucker Drillin Corp. plans to borrow $200,000. Northern National Bank will lend the money at one-half percentage point over the prime rate of 8.5% (9 percent total) and requires a compensating balance of 20 percent. Principal in this case refers to funds that the firm can effectively use in the business. What is the effective ra

Mathematics

A child's grandparents purchased a $10,000 bond fund maturing in 18 years to be used for her college education. The bond fund pays 4% compounded semi-annually. How much will the bond fund be worth at maturity?

Omar Company: Compare the effects of a stock dividend and a stock split.

E12-10 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will redu

Inductive and Deductive Reasoning: Differences and Examples

1. In your own words, explain what is meant by "inductive reasoning" and "deductive reasoning." State the differences between the two and provide examples to illustrate. 2. What is the purpose of estimation? Discuss advantages and disadvantages of relying on estimation. Provide an example of estimation used in your daily li

Financial management

Calculate the tax disadvantage to organizing a U. S. business today, after passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003, as a corporation versus a partnership under the following conditions. Assume that all earnings will be paid out as cash dividends. Operating income ( operating profit before taxes) will

Data and integers

1. Find the median of the following set of numbers. 45, 21, 54, 22, 65, 61 Solution, explanation: 2. The following scores were recorded on a 100-point examination: 95, 75, 76, 86, 96, 71, 68, 81, 95, 76, 69, 82, 93, 88, 94 Find the mean and median final examination scores. Solution, explanation:

Business Math : Income Statement and Vertical Analysis

II. Create an income statement that finds the gross profit and net income for ABC Computers for the year ending August 31, 2007 if the company had net sales of $28,625; cost of goods sold of $13,247; and operating expenses of $2,752. III. Complete a vertical analysis of the income statement in part two. IV. In 2

Constraint

Cully furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75000 to invest in shelves this week, and the warehouse has 18000 cubic feet av

Probability of amounts in the the collection envelopes

A local church is studying the amount of offerings in an envelope from their early Sunday mornings services. The church studied 500 envelopes and found the following: Less than $5 200 $5 to $9.99 100 $10 to $19.99 75 $20 to $49.99 75 $50 or more 50 What is the probabi

Static budget

Please see attached document. Sharifi Hospital basis its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient visits 8,500 Budgeted variable overhead costs: Supplies (@$4.70 per patient-visit) $39,950 Laundry (@$7.80 per patient-visit) 66,300 Total v