CHAPTER 9 THE COST OF CAPITAL (Difficulty: E = Easy‚ M = Medium‚ and T = Tough) Multiple Choice: Problems Easy: Cost of common stock Answer: d Diff: E [i]. Bouchard Company ’s stock sells for $20 per share‚ its last dividend (D0) was $1.00‚ and its growth rate is a constant 6 percent. What is its cost of common stock‚ rs? a. 5.0% b. 5.3% c. 11.0% d. 11.3% e. 11.6% Cost of common stock Answer: b Diff: E [ii]. Your company ’s stock
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central tendency. Under what condition(s) should each one be used? Mean- Works good when it comes to test scores Median- should be used when describing something like average income. Mode= is good is you want to see what is you best seeing product in a store situation. 2. Last year‚ 12 employees from a computer company retired. Their ages at retirement are listed below.First‚ create a stem plot for the data. Next‚ find the mean retirement age. Round to the nearest year. 55 77 64 77 69 63 62 64 85 64 56 59
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Comparisons Involving Means Learning Objectives 1. Be able to develop interval estimates and conduct hypothesis tests about the difference between two population means when EMBED Equation.DSMT4 and EMBED Equation.DSMT4 are known. 2. Know the properties of the sampling distribution of EMBED Equation . 3. Be able to use the t distribution to conduct statistical inferences about the difference between two population means when EMBED Equation.DSMT4 and EMBED Equation.DSMT4 are unknown. 4. Learn
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using the Adjusted Present Value (APV) approach assuming the firm raises $750 thousand of debt to fund the project and keeps the level of debt constant in perpetuity. NPV of Levered Firm = $1‚528‚485 3. Value the project using the Weighted Average Cost of Capital (WACC) approach assuming the firm maintains a constant 25% debt-to-market value ratio in perpetuity. NPV of Levered Firm = $1‚469‚972 4. How do the values from the APV and WACC approaches compare? How do
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PART A: i) Male: Female: The mean value of life satisfaction for male is about 7.7459 while for female is 7.7101‚ which proves there is no significant different life satisfaction between male and female‚ thus gender does not affect life satisfaction a lot. But when it comes to sample variance‚ for male is 2.5684 while for female is 3.0081. From this pair of figures it is obvious that the life satisfaction for female is more flexible than male. Man’s life satisfactions are easy to be affected
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Butler Lumber Company 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million) 3. As Mr. Butler’s financial adviser‚ would you urge him to go ahead with‚ or to reconsider‚ his anticipated expansion and his plans for additional debt financing? As the banker‚ would you
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to Sell | Mean | 474.0075 | Mean | 454.2225 | Mean | 106 | Median | 437 | Median | 417.5 | Median | 96 | Maximum | 975 | Maximum | 975 | Maximum | 282 | Minimum | 169.9 | Minimum | 165 | Minimum | 28 | Standard Deviation | 197.29003 | Standard Deviation | 192.5177534 | Standard Deviation | 58.2168207 | Based on the chart‚ the mean was calculated by adding up the sum of the list and divide 40‚ which the number of the total listed prices. The mean is 474‚007.5‚ which mean the average
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Mean‚ Median‚ Mode‚ and Range Mean‚ median‚ and mode are three kinds of "averages". There are many "averages" in statistics‚ but these are‚ I think‚ the three most common‚ and are certainly the three you are most likely to encounter in your pre-statistics courses‚ if the topic comes up at all. The "mean" is the "average" you are used to‚ where you add up all the numbers and then divide by the number of numbers. The "median" is the "middle" value in the list of numbers. To find the median‚ your
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Mean and Standard Deviation The mean‚ indicated by μ (a lower case Greek mu)‚ is the statistician ’s jargon for the average value of a signal. It is found just as you would expect: add all of the samples together‚ and divide by N. It looks like this in mathematical form: In words‚ sum the values in the signal‚ xi‚ by letting the index‚ i‚ run from 0 to N-1. Then finish the calculation by dividing the sum by N. This is identical to the equation: μ =(x0 + x1 + x2 + ... + xN-1)/N. If you are not
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Week Five Discussion | This Discussion will give you the opportunity to calculate or identify the three measures of central tendency. You will be asked to select an appropriate real life situation in which one measure would be more appropriate than the other two measures of center. 1. Select a topic of interest to you and record the topic in your posting‚ for example: “What is the average number of hours people watch TV every week?” Make sure the question you ask will be answered with a number
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