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
Musumeci Capital Management has invested its portfolio as shown here. What is Musumeci's expected portfolio return? Asset Portfolio Weight Expected Return Money market securities 10% 4% Corporate bonds 20 8 Equities 70 12
If we have student scores of 4.0, 3.7, 3.7, 3.7, 1.0 the average would be 3.2 while the median and the mode would both be 3.7. Which is the best measure of the average? Discuss the concept of skew in relation to this data set. Consider any outliers' effects on the different averages as well.
The data set for our course is a sample of a survey conducted on the population of the American Intellectual Union (AIU). It is available via the following link: DataSet with DataSet Key which contains the following nine sections of data that will be used throughout our course: (1) Gender (2) Age (3) Department (4) Position
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?
Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?
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
Details: Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $10,000 will
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
Assume that within an investment pool of 1,000 mortgages (a mortgage-backed security) there are 562 that are 'under water' - i.e. the current market value is less than the outstanding mortgage balance. Suppose further that 160 mortgages will be randomly chosen from the pool by an investment group (that does not know the exact n
The data set for our course is a sample of a survey conducted on the population. It is available via the following link: DataSet with DataSet Key which contains the following nine sections of data that will be used throughout our course: (1) Gender (2) Age (3) Department (4) Position (5) Tenure (6) Overall Job Satisfaction (7
Farley Company reported the following information for 2007: Budgeted Sales: September $ 240,000; October $310,000; November $290,000; December $360,000; and January $200,000. Budgeted Purchases: September $ 90,000; October $120,000; November $128,000; December $ 144,000; and January $ 88,000. -All sales are on credit. -Cus
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
A stock has a beta of 1.5, the market risk premium is 9%, and the risk-free rate is 5%. a. What is the required rate of return on this stock? b. What is the expected return on the market? c. If based on your personal opinion the stock will generate a return of 20%, is the stock over-valued or under-valued? Would you buy or
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
Calculate the expected return on the portfolio [E ( R )] of the following assets if you invest 20% in asset 1, 30% in asset 2, and 50% in asset 3. How and why will your answer change if you shift 20% of invested funds from the least risky (asset 3) to the most risky (asset 1) asset? Asset Return 1.
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
(1) Gender (2) Age (3) Department (4) Position (5) Tenure (6) Overall Job Satisfaction (7) Intrinsic Job Satisfaction - Satisfaction with the actual performance of the job (8) Extrinsic Job Satisfaction- Things external to the job, e.g., office location, your work colleagues, your own office (cubicle/hard walled office, etc), an
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
A supervisor has 5 salespeople who can be assigned to 5 different routes next month. Adam can be expected to sell $9000 worth of goods on Route 1, $8000 on Route 2, $10,000 on Route 3, $7000 on Route 4, and $8000 on Route 5. Betty would sell $6000. $9000, $5000, $7000, and $4000 on these routes; Charles would sell $4000, $50
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
All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 45% in the month following sale, and the rest are collected in the second month following sale. Bad debts are negligible and should be ignored. The following are budgeted sales data for the company: Janu
Sioux Company is estimating the following sales for the first six months of next year: January $250,000 February $220,000 March $240,000 April $300,000 May $360,000 Sales at Sioux are normally collected as 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on