Probability Distribution Assignment

PART 2 8.The probability distribution of possible net present values for project X has an expected value of $20,000 and a standard deviation of $10,000. Assuming a normal distribution: Calculate the probability that the net present value will be zero or less, Calculate the probability that the NPV will be greater than $30,000, Calculate the probability that the NPV will be less than $5,000 9. Macy announced they will pay a dividend of $2 on its common stock next year.  Thereafter, you expect dividends to grow at a rate of 6 percent a year in perpetuity.  If you require a …

Capital Market Finance Paper

Please apply the basic financial principles and use your common sense—as indicated you will also need to do some research.  Your grade will be based on your thinking process and your subject knowledge of what we have covered. Part One of your paper should be between 5 and 7 pages single-spaced and Part Two should be between 3 and 4 pages single-spaced.  PART ONE: We have discussed the essential elements of a business plan. As you may recall, a typical business plan has a number of standard sections to it, including a section that helps investors understand the market for …

Calculate Annual Tax Rate

Tax Liability A corporation has $7 mil. in equity. During the tax year it takes in $4 million in receipts and earns $ 2 million in capital gains from sale of subsidiary. It incurs labor costs of $1 million, interest costs of $250,000, material costs of $500,000, and pays rent for structure of $250,000. Calculate the corporation’s total accounting profit and assuming that the profit is fully taxable, calculate its tax liability using the tax rates in this table: Taxable Income ATR at begin of bracket MTR Less than 50,000 0% 15% more than 50,000 but less than 75,00 15% …

Provide management accounting information

Pender Bearings PTY LTD Question Based on a single cost driver of 20,000 direct labour hours, Pender Bearings Pty Ltd has analysed its factory overhead costs for the following year as:   Fixed Variable Total lndirect materials 44,000 40,000 84,000 lndirect labour 46,000 40,000 86,000 Fueloil 18,000 20,000 38,000 Repairs and maintenance 10,000 15,000 25,000 Other factory overhead 22,000 5,000 27,000 Total 140,000 120,000 260,000 Required: lf Pender Bearings had estimated an activity level of 22,000 direct labour hours, estimate what the amount of the total variable,total fixed and total factory over head would have been. Pender Bearings estimates are …

The Efficient Frontier article, “The 15-Stock Diversification Myth,”

Bling Diamond’s cash dividend be in seven years ? 5. Four years ago, Bling Diamond, Inc., paid a dividend of $1.20 per share. Bling paid a dividend of $1.93 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 7 percent per year. What will Bling Diamond’s cash dividend be in seven years? 6. UsingCapital Asset Pricing Model, A stock has an expected return of 16.2 percent, a beta of 1.75, and the expected return on the market is 11 percent. What must …

Exporting Conversion Problems

How much did the company make or lose ? Use the following information to answer questions 1-2. The current exchange rate between the US dollar and the Japanese yen is $1 = 102.690 yen. The one month forward rate is $1 = 102.505 yen. The two month forward rate is $1 = 102.349 yen. The three month forward rate is $1 = 102.207 yen. How would a US exporter which receives 395,000 yen in 30 days contract in the forward market to pay the future invoice? How many dollars would the exporter receive?How much did the company make or lose …

Currency Swap

Question 1 An Australian farmer has just sold a shipment of live sheep worth KWD100 000 to Kuwait, with the payment due in three months. The company wishes to hedge this exposure, since the Kuwaiti dinar is expected to depreciate against the Australian dollar in the next three months. Australian banks are unwilling to offer forward contracts on the Kuwaiti currency. However, Kuwaiti banks offer forward contracts to trade the currency against the US dollar. The following information is available: Current spot rate (AUD/KWD)                                  5.46 Expected spot rate (AUD/KWD)                                5.20 Current spot rate (KWD/USD)                                   0.340 Expected spot rate (KWD/USD)                                0.324 …

FIN 615 Financial Analysis and Modeling

PART 4 The student population of Moon University at the end of the last five years is provided on cells B2-B6. Which is the correct formula for cell B7 that will allow you to determine the student population growth rate from the end of year 1 to the end of year 5?     a. =RATE(A6,0,B2,B6,0) b. =RATE(A6,0,-B2,B6,0) c. =RATE(A6-A2,0,-B2,B6,0) d. =RATE(A6-A2,0,B2,B6,0) e. =RATE(A6-A2,0,-B2,B6,1) You have a credit card balance of $5,000 that you want to pay in full before buying something else. If the interest rate of the credit card is 17%, what should be the formula on cell …

Provide management accounting information

Question Activity-based Costing Losch Engineering allocates its factory overhead using activity-based costing concepts Application rates used are: Activity CostDriver  Application rate Set-ups Numberof set – ups $ 375 per set-up Assembly Machine hours $ 60 per Machine hours  Testing  Number of tests $30 per test Detailsof one product, Arkell, in September are: Directmaterials $50,000 Directlabour $30,000 Factoryoverhead   Set-up 3 set-ups Assembly 150 machine hours Testing 20 tests Unitsproduced 7,000units Required: Calculate for Arkell in September: (1) Total manufacturing costs (2) Arkell- Cost per unit Providemanagementaccountinginformation Question Process Costing :Byford Ltd has the following production results for October: Work in …

Business and Public management

Question 1, A company will pay $2 dividends next year. These dividends are expected to grow at a rate of 15% for four years. Afterwards, the long term growth rate is expected to settle at 4%. The published beta for the stock is 1.2, the expected rate of return on the market is 13% and the current risk free rate is 3%. Calculate the company’s dividends to from year 1 to year 5?  MVI’s beta is 1.6, the expected return on the market is currently 12.75 percent, and the risk free rate is 4%?  What should be the company’s required …