Capital Asset Pricing Model 6.10 Suppose you invest $27,000 in King Company Stock, which has a beta of 1.33 and in 1000 shares of Ace company stock at $23 a share. Ace has long term growth of 4% annually. The riskless rate is 9% and the expected return rate on the market is 17%. Next year the dividend of Ace will be $2.30 a
1. Adams Company stock paid a dividend of $3.00 from last year, and $3.25 from this year. The increase in the dividend is similar to the long term growth of the company. Considering the risk, your required rate of return from this stick is 14%. Find the price of stock. 2. The current price of Ford stock is $50 a share and i
1) Suppose that a school has 20 classes: 16 with 25 students in each, three with 100 students in each, and one with 300 students, for a total of 1000 students. a) What is the average class size? b) Select a student randomly out of the 1000 students. Let the random variable X equal the size of the class to which this student be
1) In a particular lottery, 3 million tickets are sold each week for 50c apiece. Out of the 3 million tickets, 12,006 are drawn at random and without replacement and awarded prizes: twelve thousand $25 prizes, four $10,000 prizes, one $50,000 prize, and one $200,000 prize. If you purchases a single ticket each week, what is the
Suppose the market risk premium is 6% and the risk-free interest rate is 4%. Using table 10.6 (table attached), calculate the expected return of investing in H.J Heinz stock, calculate the expected return of investing in Cisco system stock and calculate the expected return of investing in General Electric stock?
9. 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? 3.00% 4.00% 7.00% 10.00% 11.00% 10.Krell Industries h
The Saki motorcycle dealer in Minneapolis-St. Paul area wants to make an accurate forecast of demand for the Saki Super TXII motorcycle during the next month. Because the manufacturer is in Japan, it is difficult to send motorcycles back or reorder if the proper number is not ordered a month ahead. From sales records, the dealer
1. Portfolio Expected Return. You own a portfolio that has $900 invested in Stock A and $1,700 invested in Stock B. If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is the expected return on the portfolio? 2. Purchasing Power Parity and Exchange Rate. According to purchasing power par
An analyst wants to use the ratio-to-moving average method to forecast a company's sales for the next few quarters. Beginning in Quarter 4 of 2005, the analyst collects the following sales data (in millions of dollars). Estimate the seasonal index associated with Quarter 3. Round your answer to at least 3 decimal places.
University officials at a major university would like to use 5-term moving averages to analyze enrollment. Enrollment data (in thousands of students) for the 15 most recent terms are shown in the middle column of the table below. A time series plot of the data was included in the question. In the far-right column of the table ar
I need help with the below problem. I do not understand how to prepare expected cash collections/disbursments. Calgon Products a distributor of organic beverages needs a cash budget for September. The following information is available: a. The cash balance at the beginning of September is $9,000 b. Actual sales for July an
Please help with the following problems. Provide step by step calculations. a. A report on the assets of American households says that the median net worth of households headed by someone aged less than 35 years is $11,600. The mean net worth of these same young households is $90,700. What explains the difference between the
Stocks & Equity Calculations: 1) What is the stock's expected constant growth rate after t = 4, i.e., what is X? 2) What is Sorenson's expected stock price in 7 years, i.e., what is P7? 3) What is Petry's estimated intrinsic value per share of common stock?
1. Prock Petroleum's stock has a required return of 13%, and the stock sells for $50 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 30% per year for the next 4 years, so D4 = $1.00(1.30)4 = $2.8561. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever
Deliverable Length: 2 pages There are three (3) parts to this project. Your research paper should address each one fully and thoroughly. Part 1: Review each situation (there are FIVE scenarios within the activity) and identify the applicable decision concept (you may select from any theory, principle, model, etc. from ou
A computer software company wants to use 5-period moving averages to forecast the number of users who download its anti-virus software. The numbers of users (in thousands) for the 14 most recent periods are shown in the middle column of the table below. Also shown is a time series plot of the data. In the far-right column of t
Using decision tree analysis, compute the maximum fee the owner should pay the consultant for his services.
5. Expected Value of Sample Information (16.0 points) Chapter 12, Problem 36 The machine shop owner is considering hiring a military consultant. By talking to other machine shop owners and obtaining past data, the owner has estimated the military consultant was correctly issued a favorable report where a contract was later a
Finding critical path, expected completion time & probability of the job taking more than 50 working days
*18. DEF A/C Remodelers has contracted to reconfigure the interior of a large corporate A/C. The project manager has determined that there are 11 steps to the process. In consultation with the project foreman he has determined the sequence and precedent for the 11 events, labeled A - K, and has estimated the optimistic, expe
If it costs $600 per car or truck to install seat belts and all people are required to use them when in the vehicle, what is the cost of each life saved if the use of a seat belt reduces the probability of being killed by 50%. Assume that 0.6 of the present 25,000 vehicle occupants killed in collisions were not wearing seat belt
Please see attached problem. Coffee Bean, Inc. (CBI), is a processor and distributor of a variety of blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. CBI currently has 40 different coffees that it sells to gourmet shops in one-pound bags. The major cost o
An analyst wants to use the ratio to moving average method to forecast a company's sales forecast the next few quarters. Beginning in quarter 4 of 04, the analyst collects the following sales data. Estimate the seasonal index associated with quarter 4. Centered ratio to Time
Chapter Three - A. Task time estimates for a production line setup project are as follows: Activity Time (in hours) Immediate predecessors A 6.0 -- B 7.2 -- C 5.0 A D 6.0 B,C E 4.5 B,C F
Forecasting 1. The Fastgro Fertilizer Company distributes fertilize to various lawn and garden shops. The company must base its production schedule on a forecast of how may tons of fertilizer will be demaned from it. The company has gathered the following data from the past 3 years from its sales records: Year Quarter Demand
If you have a set of results and change or make improvements the process but the median remain the same, which is the possible cause of this phenomenon? Please provide an example.
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. Alternative Brisk Slow Buy 90 -10 Rent 70 40 Lease 60 55 If the probability of brisk business is .40 and for slow business is .60, determine the expec
Choose either the Least Squares Method, the Moving Average Method, or the Weighted Moving Average and provide step-by-step instructions you would use to plot the associated trend line. Use a small data set of your choice to illustrate your example. Your instructions should address MS Excel, MegaStat, or a manual calculation.
Suppose Babsie generated the following probability distribution: X p(x) 5 .25 7 .30 10 .25 12 .05 15 .15 a. Is this probability distribution discrete or continuous? Explain your reasoning. b. Calculate the expected value of X. Show your work!! c. Calculate the variance of X. Show your work!!! d. Calcu
A video rental store has two video cameras available for customers to rent. Historically, demand for cameras has followed this distribution. The revenue per rental is $40. If a customer wants a camera and none is available, the store gives a $15 coupon for tape rental. Demand Relative Frequency Revenue Cost 0 .35 0 0 1 .25 40
Please help so I can complete this assignment: The project consists of providing a summary of an article which used a statistics table or graph. Here is the article : http://pewresearch.org/pubs/813/gen-dems What type of variables are being measured? dependent or independent? Is the study a correlation type? Predictors o
Using the 4 weeks of data below, forecast sales for the fifth week using a 3 week moving average. Week Sales 1 20 2 40 3 15 4 38 a. 93 b. 75 c. 25 d. 31
THE NASDAQ stock market includes small-and medium-sized companies, many of which are in high-tech industries.
THE NASDAQ stock market includes small-and medium-sized companies, many of which are in high-tech industries. Because of the nature of these companies, the NASDAQ tends to be more volatile than the Dow Jones Industrial Average or the S&P 500. The weekly values for the NASDAQ during the first 20 weeks of 2006 are listed in the da