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7v-7+4v+2=-3v-3
11v+3v =5-3
14v = 2
v =2/14 =1/7
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A company has estimated the standard deviation of individual sales transactions to be $2000. Approximately 100 sales trans ...
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A company has estimated the standard deviation of individual sales transactions to be $2000. Approximately 100 sales transactions take place each ...
BST 322 CNUAS Week 3 Crosstabulation Table Creation Discussion
Now that we are more familiar with StatCrunch and making cross-tabulation tables, discuss how the textbook author (Dr. Pol ...
BST 322 CNUAS Week 3 Crosstabulation Table Creation Discussion
Now that we are more familiar with StatCrunch and making cross-tabulation tables, discuss how the textbook author (Dr. Polit) created Figure 8.2 (the cross tabulation table on p. 174). Can you get the data into StatCrunch and perform the Chi-Square test? All the answers are there for you in the table- can you get StatCrunch to generate them?If you need help doing this analysis, you can find a video on how to do the work in StatCrunch by clicking on this link: "How to do a Chi-Square in StatCrunch."
Construct Confidence Interval for Data Sets Questions
1) Suppose you want to test the claim that μ1 = μ2. Two samples are randomly selected from eachpopulation. If a hypothes ...
Construct Confidence Interval for Data Sets Questions
1) Suppose you want to test the claim that μ1 = μ2. Two samples are randomly selected from eachpopulation. If a hypothesis test is performed, how should you interpret a decision that rejects the nullhypothesis?2) Construct a 90% confidence interval for μ1 - μ2. Two samples are randomly selected from normalpopulations. The sample statistics are given below. Assume that σ21 = σ22.n1 = 10 n2 = 12x1 = 25 x2 = 23s1 = 1.5 s2 = 1.93) Construct a 95% confidence interval for μ1 - μ2. Two samples are randomly selected from normalpopulations. The sample statistics are given below. Assume that σ21 = σ22.n1 = 8 n2 = 7x1 = 4.1 x2 = 5.5s1 = 0.76 s2 = 2.514) Data sets A and B are dependent. Find d.A 36 32 53 49 37B 34 30 31 41 285) Construct a 95% confidence interval for data sets A and B. Data sets A and B are dependent. Round tothe nearest tenth.A 30 28 47 43 31B 28 24 25 35 226) Construct a 99% confidence interval for data sets A and B. Data sets A and B are dependent. Round tothe nearest tenth.A 5.8 6.8 8.7 5.7 5.8B 8.2 7.1 7.0 6.9 8.37) Find the standardized test statistic, z, to test the claim that p1 < p2. The sample statistics listed beloware from independent samples.Sample statistics: n1 = 550, x1 = 121, and n2 = 690, x2 = 1958)) Find the weighted estimate, p, to test the claim that p1 < p2. Use α = 0.10. The sample statisticslisted below are from independent samples.Sample statistics: n1 = 550, x1 = 121, and n2 = 690, x2 = 1959) In a recent survey of gun control laws, a random sample of 1000 women showed that 65% were in favorof stricter gun control laws. In a random sample of 1000 men, 60% favored stricter gun control laws.Construct a 95% confidence interval for p1 − p2.10) A random sample of 100 students at a high school was asked whether they would ask their father ormother for help with a homework assignment in science. A second sample of 100 different students wasasked the same question for an assignment in history. Forty-three students in the first sample and 47students in the second sample replied that they turned to their mother rather than their father for help.Construct a 98% confidence interval for p1 − p2
Structured External Assignment
I have attached the word file, all the instruction and requirements are there. There are five parts of assignment, I have ...
Structured External Assignment
I have attached the word file, all the instruction and requirements are there. There are five parts of assignment, I have already completed first (Topic Approval) and second (Written
Project Proposal) parts , you just need to continue and finish other requirement, if you have any question please let me know.
AUMC Managerial Finance the Stock of Matrix Computing & Cost of Capital Worksheet
Problem Set #4Attached Files: Question 1 - Build a Model - Matrix Computing.xlsx (20.094 KB) Question 2 - Build a Model - ...
AUMC Managerial Finance the Stock of Matrix Computing & Cost of Capital Worksheet
Problem Set #4Attached Files: Question 1 - Build a Model - Matrix Computing.xlsx (20.094 KB) Question 2 - Build a Model - Pinto.com.xlsx (30.761 KB)Question 1Start with the partial model in the attached.The stock of Matrix Computing sells for $65, and last year’s dividend was $2.53. Security analysts are projecting that the common dividend will grow at a rate of 9% a year. A flotation cost of 12% would be required to issue new common stock. Matrix’s preferred stock sells for $42.00, pays a dividend of $3.32 per share, and new preferred stock could be sold with a flotation cost of 10%. The firm has outstanding bonds with 25 years to maturity, a 15% annual coupon rate, semiannual payments, $1,000 par value. The bonds are trading at $1,271.59. The tax rate is 20%. The market risk premium is 5.5%, the risk-free rate is 7.0%, and Matrix’s beta is 1.2. In its cost-of-capital calculations, Matrix uses a target capital structure with 40% debt, 10% preferred stock, and 50% common equity.a. Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). Use both the CAPM method and the dividend growth approach to find the cost of equity.b. Calculate the cost of new stock using the dividend growth approach.c. Assuming that Matrix will not issue new equity and will continue to use the same tar-get capital structure, what is the company’s WACCQuestion 2Start with the partial model in the attached.Pinto.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $25 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 12% of the year’s projected sales; for example, NWC0 = 12%(Sales1 ). The servers would sell for $21,000 per unit, and Pinto believes that variable costs would amount to $15,000 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 2.5%. The company’s nonvariable costs would be $1.5 million at Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project’s returns are expected to be highly correlated with returns on the firm’s other assets. The firm believes it could sell 2,000 units per year. The equipment would be depreciated over a 5-year period, using MACRS rates. The estimated market value of the equipment at the end of the project’s 4-year life is $1 million. Pinto.com’s federal-plus-state tax rate is 20%. Its cost of capital is 10% for average-risk projects, defined as projects with a coefficient of variation of NPV between 0.8 and 1.2. Low-risk projects are evaluated with an 8% project cost of capital and high-risk projects at 13%.Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback.Now conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold. Set these variables’ values at 10% and 20% above and below their base-case values.Now conduct a scenario analysis. Assume that there is a 25% probability that best-case conditions, with each of the variables discussed in Part b being 20% better than its base-case value, will occur. There is a 25% probability of worst-case conditions, with the variables 20% worse than base, and a 50% probability of base-case conditions.If the project appears to be more or less risky than an average project, find its risk-adjusted NPV, IRR, and payback.On the basis of information in the problem, would you recommend the project should be accepted?Question 3You are a financial analyst for the Waffle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects A and B. Each project has a cost of $50,000, and the cost of capital for each is 10%.The projects’ expected net cash flows are as follows: Expected Net Cash FlowsYearProject AProject B0($50,000)($50,000)125,00015,000220,00015,000310,00015,00045,00015,00055,00015,000Calculate each project’s payback period, net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and profitability index (PI).Which project will you select if your decision was based solely on the project’s payback period?Which project or projects should be accepted if they are independent?Which project should be accepted if they are mutually exclusive?d. How might a change in the cost of capital produce a conflict between the NPV and IRR rankings of these two projects? Would this conflict exist if r were 6%? (Hint: Plot the NPV profiles.)Question 4Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for its factory. Because both machines perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered machine will cost more, but it will be less expensive to operate; it will cost $102,000, whereas the coal-powered machine will cost $69,500. The cost of capital that applies to both investments is 10%. The life for both types of machines is estimated to be 6 years, during which time the net cash flows for the electric-powered machine will be $26,150 per year, and those for the coal-powered machine will be $20,000 per year. Annual net cash flows include depreciation expenses.Calculate the NPV and IRR for each type of machine, and decide which to recommendSubmit your answers in a Word document.
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Most Popular Content
5 pages
Homework Help
A company has estimated the standard deviation of individual sales transactions to be $2000. Approximately 100 sales trans ...
Homework Help
A company has estimated the standard deviation of individual sales transactions to be $2000. Approximately 100 sales transactions take place each ...
BST 322 CNUAS Week 3 Crosstabulation Table Creation Discussion
Now that we are more familiar with StatCrunch and making cross-tabulation tables, discuss how the textbook author (Dr. Pol ...
BST 322 CNUAS Week 3 Crosstabulation Table Creation Discussion
Now that we are more familiar with StatCrunch and making cross-tabulation tables, discuss how the textbook author (Dr. Polit) created Figure 8.2 (the cross tabulation table on p. 174). Can you get the data into StatCrunch and perform the Chi-Square test? All the answers are there for you in the table- can you get StatCrunch to generate them?If you need help doing this analysis, you can find a video on how to do the work in StatCrunch by clicking on this link: "How to do a Chi-Square in StatCrunch."
Construct Confidence Interval for Data Sets Questions
1) Suppose you want to test the claim that μ1 = μ2. Two samples are randomly selected from eachpopulation. If a hypothes ...
Construct Confidence Interval for Data Sets Questions
1) Suppose you want to test the claim that μ1 = μ2. Two samples are randomly selected from eachpopulation. If a hypothesis test is performed, how should you interpret a decision that rejects the nullhypothesis?2) Construct a 90% confidence interval for μ1 - μ2. Two samples are randomly selected from normalpopulations. The sample statistics are given below. Assume that σ21 = σ22.n1 = 10 n2 = 12x1 = 25 x2 = 23s1 = 1.5 s2 = 1.93) Construct a 95% confidence interval for μ1 - μ2. Two samples are randomly selected from normalpopulations. The sample statistics are given below. Assume that σ21 = σ22.n1 = 8 n2 = 7x1 = 4.1 x2 = 5.5s1 = 0.76 s2 = 2.514) Data sets A and B are dependent. Find d.A 36 32 53 49 37B 34 30 31 41 285) Construct a 95% confidence interval for data sets A and B. Data sets A and B are dependent. Round tothe nearest tenth.A 30 28 47 43 31B 28 24 25 35 226) Construct a 99% confidence interval for data sets A and B. Data sets A and B are dependent. Round tothe nearest tenth.A 5.8 6.8 8.7 5.7 5.8B 8.2 7.1 7.0 6.9 8.37) Find the standardized test statistic, z, to test the claim that p1 < p2. The sample statistics listed beloware from independent samples.Sample statistics: n1 = 550, x1 = 121, and n2 = 690, x2 = 1958)) Find the weighted estimate, p, to test the claim that p1 < p2. Use α = 0.10. The sample statisticslisted below are from independent samples.Sample statistics: n1 = 550, x1 = 121, and n2 = 690, x2 = 1959) In a recent survey of gun control laws, a random sample of 1000 women showed that 65% were in favorof stricter gun control laws. In a random sample of 1000 men, 60% favored stricter gun control laws.Construct a 95% confidence interval for p1 − p2.10) A random sample of 100 students at a high school was asked whether they would ask their father ormother for help with a homework assignment in science. A second sample of 100 different students wasasked the same question for an assignment in history. Forty-three students in the first sample and 47students in the second sample replied that they turned to their mother rather than their father for help.Construct a 98% confidence interval for p1 − p2
Structured External Assignment
I have attached the word file, all the instruction and requirements are there. There are five parts of assignment, I have ...
Structured External Assignment
I have attached the word file, all the instruction and requirements are there. There are five parts of assignment, I have already completed first (Topic Approval) and second (Written
Project Proposal) parts , you just need to continue and finish other requirement, if you have any question please let me know.
AUMC Managerial Finance the Stock of Matrix Computing & Cost of Capital Worksheet
Problem Set #4Attached Files: Question 1 - Build a Model - Matrix Computing.xlsx (20.094 KB) Question 2 - Build a Model - ...
AUMC Managerial Finance the Stock of Matrix Computing & Cost of Capital Worksheet
Problem Set #4Attached Files: Question 1 - Build a Model - Matrix Computing.xlsx (20.094 KB) Question 2 - Build a Model - Pinto.com.xlsx (30.761 KB)Question 1Start with the partial model in the attached.The stock of Matrix Computing sells for $65, and last year’s dividend was $2.53. Security analysts are projecting that the common dividend will grow at a rate of 9% a year. A flotation cost of 12% would be required to issue new common stock. Matrix’s preferred stock sells for $42.00, pays a dividend of $3.32 per share, and new preferred stock could be sold with a flotation cost of 10%. The firm has outstanding bonds with 25 years to maturity, a 15% annual coupon rate, semiannual payments, $1,000 par value. The bonds are trading at $1,271.59. The tax rate is 20%. The market risk premium is 5.5%, the risk-free rate is 7.0%, and Matrix’s beta is 1.2. In its cost-of-capital calculations, Matrix uses a target capital structure with 40% debt, 10% preferred stock, and 50% common equity.a. Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). Use both the CAPM method and the dividend growth approach to find the cost of equity.b. Calculate the cost of new stock using the dividend growth approach.c. Assuming that Matrix will not issue new equity and will continue to use the same tar-get capital structure, what is the company’s WACCQuestion 2Start with the partial model in the attached.Pinto.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $25 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 12% of the year’s projected sales; for example, NWC0 = 12%(Sales1 ). The servers would sell for $21,000 per unit, and Pinto believes that variable costs would amount to $15,000 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 2.5%. The company’s nonvariable costs would be $1.5 million at Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project’s returns are expected to be highly correlated with returns on the firm’s other assets. The firm believes it could sell 2,000 units per year. The equipment would be depreciated over a 5-year period, using MACRS rates. The estimated market value of the equipment at the end of the project’s 4-year life is $1 million. Pinto.com’s federal-plus-state tax rate is 20%. Its cost of capital is 10% for average-risk projects, defined as projects with a coefficient of variation of NPV between 0.8 and 1.2. Low-risk projects are evaluated with an 8% project cost of capital and high-risk projects at 13%.Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback.Now conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold. Set these variables’ values at 10% and 20% above and below their base-case values.Now conduct a scenario analysis. Assume that there is a 25% probability that best-case conditions, with each of the variables discussed in Part b being 20% better than its base-case value, will occur. There is a 25% probability of worst-case conditions, with the variables 20% worse than base, and a 50% probability of base-case conditions.If the project appears to be more or less risky than an average project, find its risk-adjusted NPV, IRR, and payback.On the basis of information in the problem, would you recommend the project should be accepted?Question 3You are a financial analyst for the Waffle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects A and B. Each project has a cost of $50,000, and the cost of capital for each is 10%.The projects’ expected net cash flows are as follows: Expected Net Cash FlowsYearProject AProject B0($50,000)($50,000)125,00015,000220,00015,000310,00015,00045,00015,00055,00015,000Calculate each project’s payback period, net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and profitability index (PI).Which project will you select if your decision was based solely on the project’s payback period?Which project or projects should be accepted if they are independent?Which project should be accepted if they are mutually exclusive?d. How might a change in the cost of capital produce a conflict between the NPV and IRR rankings of these two projects? Would this conflict exist if r were 6%? (Hint: Plot the NPV profiles.)Question 4Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for its factory. Because both machines perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered machine will cost more, but it will be less expensive to operate; it will cost $102,000, whereas the coal-powered machine will cost $69,500. The cost of capital that applies to both investments is 10%. The life for both types of machines is estimated to be 6 years, during which time the net cash flows for the electric-powered machine will be $26,150 per year, and those for the coal-powered machine will be $20,000 per year. Annual net cash flows include depreciation expenses.Calculate the NPV and IRR for each type of machine, and decide which to recommendSubmit your answers in a Word document.
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