Assignment 2: The Weighted Average Cost of Capital
By Wednesday, December 10, 2014, complete the following assignment:
Coogly Company is attempting to identify its weighted average cost of capital for the coming
year and has hired you to answer some quest
Question:
Interest Rate Risk. Both Bond Bill and Bond Ted have 7 percent coupons, make
semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity,
whereas Bond Ted has 20 years to maturity. If interest rates suddenly rise by 2 per
Required:
Prepare a master budget for the three-month period ending June 30. Include the following
detailed budgets:
1. a. A sales budget by month and in total.
b. A schedule of expected cash collections from sales, by month and in total.
c. A merchandise
Question:
EBIT and Leverage. Kaelea, Inc., has no debt outstanding and a total market value of $125,000. Earnings before
interest and taxes, EBIT, are projected to be $10,400 if economic conditions are normal. If there is strong expansion
in the economy,
Question:
Calculating Cost of Preferred Stock. Sixth Fourth Bank has an issue of preferred stock with a $6.25 stated
dividend that just sold for $108 per share. What is the banks cost of preferred stock?
Answer:
Question:
ICU Window, Inc., is trying to de
Question:
What is the IRR of the following set of cash flows? (Round your answer to 2 decimal places. (e.g., 32.16)
Year
Cash Flow
0
$ 16,700
1
$ 7,400
2
$ 8,700
3
$ 7,200
IRR
%
Solution:
We are given future cash flows at each year end, so discounting eac
Solution
a) Calculate the payback ratio for each project:
The time spent to recover the initial investment.
The initial investment for Project A is -$343,000. In the 1 st 3years, the total amount recovered is $196,000
($52,000 + $72,000 + $72,000). The re
SOLUTION
P = 300-2Q (p(Q)=a-bQ)
where Q = q1+q2+q3+q4+q5+q6 which means there are 6 firms in the industry.
And cost function of each firm is C(qi) = 300+20qi (before merge same for all firms)
C= Marginal Cost (same for all firms before merger) = 20 (deriv
SOLUTION
a)
Let be the mean before minus after
H0: = 0
Ha : > 0
Sample mean = 4
Standard deviation = 6.4
Standard error of mean = / n
Standard error of mean = 6.4 / 16
SE = 6.4/4
Standard error of mean 1.6
z = (xbar- ) / SE
z = (4-0) / 1.6
z = 2.5
P-value
Solutions:
Answer 1:
If CPI ignores product quality improvements then it tends to Overstate the true extent of inflation. (Option
C)
Answer 2:
Pure inflation is a special case where all prices of goods and factors of production are rising at the same
rate
Period 3: 8 Elements (Sodium to Argon) Z= 11-18
To achieve P2, it is suggested that they are presented with most of the data in a suitable format. They
may be asked to search and collate some of the data. The emphasis for P2 is on describing trends in
dat
Volume of mould
0.0333333333
SOLUTION
Mass of compacted soil (lb) Bulk Density (lb/ft^3) Average water content (%)
3.88
116.4
4.09
122.7
4.23
126.9
4.28
128.4
4.24
127.2
4.19
125.7
12%
14%
16%
18%
20%
22%
Dry density (lb/ft^3) Dry density at 100% saturati
Volume of mould
0.0333333333
Mass of compacted soil (lb) Bulk Density (lb/ft^3) Average water content (%)
3.88
116.4
4.09
122.7
4.23
126.9
4.28
128.4
4.24
127.2
4.19
125.7
12%
14%
16%
18%
20%
22%
Dry density (lb/ft^3) Dry density at 100% saturation (lb/ft
SOLUTION:
For SAE 20w oil at 25 deg C, we have dynamic viscosity u = 0.147 Ns/m^2
a)
Shear stress = u*(dv/dy) = u*(v/h)
= 0.147*(0.5 / 0.025*10^-3)
= 2943 N/m^2
Shear force = Shear stres*area
= 2943*(0.2^2)
= 117.73 N
Tension = Shear force = 117.73 N
b)
F
Part a solution:
Segway will decrease travel costs which will decrease bid rents. The concave bid-rent
curve pivots outward, with a lower slope and higher bid at each location.
Fixed building heights:
From the above graph, it can be seen that, the gap bet
Answer part a:
In the long run, the bulk of the benefits of the street improvements go to landowners because
improvement decrease intraurban transportation costs and increase the bid-rent for land by
manufacturers. The slope of the bid-rent curve decrease
Accounting for sales
Chapter 6 (TB)
Recognition of Sales Revenue
The timing of revenue recognition is important because it is critical
to the measurement of income.
Under the cash-basis accounting method, revenues are recognized
when cash is collected f
Chapter 1
Overview
1.1
Introduction to the introduction
The theory of random graphs began in the late 1950s in several papers by Erdos and Renyi.
However, the introduction at the end of the 20th century of the small world model of Watts
and Strogatz (1998
Can. J. Chem. Downloaded from www.nrcresearchpress.com by 220.227.149.70 on 08/11/16
For personal use only.
THE REACTIONS OF ACTIVE NITROGEN WITH ACETYLENE,
METHYLACETYLENE, AND DIMETHYLACETYLENE'
ABSTRACT
Hydrogen cyanide was the main nitrogen-containing
Group 8 - Graph Theory Tutorial
Tutorial
Paths, Reachability, and Connectedness
Introduction
Beginner
Graph
Terminology
Graph
Representation
Advanced
Minimum
Spanning
Trees
Dijkstra's
Algorithm
Flow
Problems
NP-Complete
Problems
Path
A path through a grap
-1-
FIITJEE
SOLUTION TO AIEEE-2005
PHYSICS
1.
A projectile can have the same range R for two angles of projection. If t1 and t2 be the
times of flights in the two cases, then the product of the two time of flights is
proportional to
(2) 1/R2
(1) R2
(3) 1/
Group 8 - Graph Theory Tutorial
Tutorial
Adjacency Matrices
Introduction
Beginner
Graph
Terminology
Graph
Representation
Advanced
Minimum
Spanning
Trees
Dijkstra's
Algorithm
Flow
Problems
NP-Complete
Problems
There are several different ways to represent