Problem #1‚ Chapter 20 1. Firm A has $10‚000 in assets entirely financed with equity. Firm B also has $10‚000 in assets‚ but these assets are financed by $5‚000 in debt (with a 10 percent rate of interest) and $5‚000 in equity. Both firms sell 10‚000 units of output at $2.50 per unit. The variable costs of production are $1‚ and fixed production costs are $12‚000. (To ease the calculation‚ assume no income tax.) a. What is the operating income (EBIT) for both firms? Units sold*price per unit
Premium Costs Variable cost Cost
Question 1 Your finance text book sold 53‚250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years‚ and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. (If you solve this problem with algebra round intermediate calculations to 6 decimal places‚ in all cases round your final answers to the nearest whole number.) Number of copies sold after 3 years Number
Premium Rate of return Investment Net present value
Wal-Mart stores INC. WACC analysis Wal-Mart Stores‚ Inc. is one of the biggest American multinational retail companies that operate chains of large discount department stores and warehouse stores. Wal-Mart is the world’s largest company by revenue‚ the biggest private employer in the world with over two million employees and the largest retailer in the world and also one of the world’s most valuable companies in terms of market value and is also the largest grocery retailer in the US. Wal-Mart
Premium Wal-Mart Department store
Carbon-14 Dating: an Invaluable Yardstick in the Chronology of Humans Archeologists use many methods to analyze data from the past. One scientific tool they use is to analyze the radioactive decay of chemical elements found in plant and animal remains‚ pottery‚ and even in rocks. Radiocarbon dating‚ also known as carbon-14 dating‚ has been one of the most important radioisotope dating methods used. This scientific tool‚ which was first developed by Willard F. Libby in the late 1940s‚ has significantly
Premium Isotope Carbon Radioactive decay
Mrs. S. is an 83 year old woman with multiple medical problems‚ including chronic obstructive pulmonary disease (for which she sees a pulmonologist)‚ atrial fibrillation and systolic heart failure (for which she sees a cardiologist)‚ hypertension‚ diabetes‚ depression‚ and mild dementia. She comes to your provider’s office today with a new list of medications. Her pulmonologist changed her inhaler from one brand/strength to another brand/strength‚ but she is not sure why. Her cardiologist took her
Premium Medicine Atrial fibrillation Chronic obstructive pulmonary disease
Assessment task-CYPOP 14 Support children and young people to have possitive relationships. Part 1- The importance of positive relationships. Part2- How to support children and young people when they are in relationship difficulties. 1. identify the different relationships children and young people may have ➢ Parents‚ siblings and extended family ➢ Friends‚ enemies ➢ Doctors‚ dentist ➢ Social workers ➢ Teachers/tutors ➢ Carer’s Explain the importance of positive relationships for development
Free Family Interpersonal relationship Humans
Chp 14‚ 15‚ 16 1. A level 0.95 confidence interval is B. an interval computed from sample data by a method that has probability 0.95 of producing an interval containing the true value of the parameter of interest. 2. A 99% confidence interval for the mean μ of a population is computed from a random sample and found to be 6 ± 3. We may conclude that C. if we took many‚ many additional random samples‚ and from each computed a 99% confidence interval for μ‚ approximately 99% of these intervals would
Premium Normal distribution Statistical hypothesis testing Statistics
Thebian play of Antigone has excited many debates over the years. The most prevalent being who exactly could be characterized as the tragic hero in the story. The argument that Antigone is the hero is deffinatly a strong one. There are many critics who believe that Creon‚ however‚ is the true protagonist of the play. In order to determine whether or not Creon is the tragic hero one must first examine what a tragic hero is. Aristotle states that a hero is neither purely innocent nor purely malevolent
Premium Tragedy Sophocles Tragic hero
1) The similarities between visual and nonverbal communication are slightly varied but overall the same. They both operate on the interpreted meaning of the action of the picture. They both rely on the emotional or inferred response from the action or media. 2) I believe it to be completely ethical to make a website more engaging to increase sales or traffic. If a competitive edge can be found by adding more facets to the experience on the web site then the advantage lies with them. Implying that
Premium
Week8 Ch 20: 5‚11‚15 5. Turn back to figure 20.1‚ which lists prices of various IBM options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following February expiration options‚ assuming that the stock price on the expiration date is $195. a. Call option‚ X = $190. b. Put option‚ X =$190. c. Call option‚ X = $195. d. Put option‚ X =$195. e. Call option‚ X = $200. f. Put option‚ X =$200. St =$195 COST PAYOFF PROFIT CALL 6.75 195-190=5 -1
Free Call option Strike price Put option