Which job in the Finance career cluster is ideal for a person with a master’s degree?

JUJU's dividend next year is expected to be $1.50. It is trading at $45 and is expected to grow at 9 percent per year. What is J

Kisachek [45]

Answer:

3.33%; 9%

Explanation:

Given that,

Expected dividend next year = $1.50

Trading at = $45

Expected growth rate per year = 9 percent

Dividend yield = (Expected dividend next year ÷ Trading amount) × 100

= ($1.50 ÷ $45) × 100

= 0.0333 × 100

= 3.33%

The capital gain of JUJU is same as the expected growth rate i.e 9 percent.

5 0

2 years ago

Vaughn Manufacturing has outstanding 596000 shares of $2 par common stock and 119000 shares of no-par 6% preferred stock with a

natima [27]

Answer: $107,900

Explanation:

Cumulative Preferred Shares refer to shares that a company has to pay dividends eventually. This means that if they are unable to pay for some years, they are to accrue that payment until they are able to.

There are 119000 shares of no-par 6% preferred stock with a stated value of $5.

That means preferred shares are liable to the following amount of dividends,

= 119,000 * 5 * 6%

= $35,700

Preferred Shares have not being paid for the past 2 years and need to be paid in the current year as well. That means 3 payments,

= 35,700 * 3

= $107,100

Preferred Shares are to be paid $107,100 out of the $215,000 with the rest going to common shares.

Amount going to Common Shares is,

= 215,000 - 107,100

= $107,900

Common Stockholders are to receive $107,900

7 0

2 years ago

If a check correctly written and paid by the bank for $648 is incorrectly recorded on the company's books for $684, the appropri

yawa3891 [41]

Answer:

add $36 to the book's balance.

Explanation:

Since in the question it is given that the check amount is $648 which is to be paid by the bank is recorded incorrectly in the company books for $684

So the difference of $36 would be added to the company book balance and no adjustment would be made in the bank balance

This addition would balance the both book balance and the bank balance.

7 0

2 years ago

An appliance dealer must decide how many (if any) new microwave ovens to order for next month. The ovens cost $220 and sell for

Vlada [557]

Answer:

Explanation:

Order 0: we have unsold items for which the return is -25

return is -25*(.4*1+.2*2+.1*3) = -25*1.1 = $-27.50

Order 1: we have to sell at a discount if no orders, otherwise sell 1, and unsold items if demand 2 or 3

return is .3*(1/2*300-220) + (1-.3)*(300-220) + -.25*(.2*1+.1*2) = .3*-70+.7*80+-25*(.4) =

-21 + 56 - 10 = $25

Order 2: we have to sell at a discount if 0 or 1 orders, sell 1 or 2, and unsold items if demand 3

return is (.3*2+.4*1)*(1/2*300-220)+(.4*1+(.2+.1)*2)*(300-220)+-25*.1 =1*-70+1*80-25*.1 =

-70 + 80 - 2.5 = $7.50

Order 3:

return is (.3*3+.4*2+.2*1)*(1/2*300-220)+(.4*1+.2*2+.1*3)*(300-220) = 1.9*-70 + 1.1*80 =

-133 + 88 = -$45

Order 1, with a return of $25, as this is the highest return.

b) If we had a perfect information, we would never pay a penalty for underordering or suffer a discounted return from over-ordering

(.4*1+.2*2+.1*3)*(300-220) = 1.1*80 = $88

Then, the value of perfect information is $88 - $25 = $63

c) P(D=0|F) = P(F|D=0)*P(D=0)/(P(F|D=0)*P(D=0)+P(F|D=1)*P(D=1)+P(F|D=2)*P(D=2)+P(F|D=3)*P(D=3))=

.1*.3/(.1*.3+.2*.4+.3*.2+.9*.1)=.03/.26 = 3/26

P(D=1|F) = P(F|D=1)*P(D=1)/(P(F|D=0)*P(D=0)+P(F|D=1)*P(D=1)+P(F|D=2)*P(D=2)+P(F|D=3)*P(D=3))=

.2.4/(.1*.3+.2*.4+.3*.2+.9*.1)=.08/.26 = 4/13

P(D=2|F) = P(F|D=2)*P(D=2)/(P(F|D=0)*P(D=0)+P(F|D=1)*P(D=1)+P(F|D=2)*P(D=2)+P(F|D=3)*P(D=3))=

.3*.2/(.1*.3+.2*.4+.3*.2+.9*.1)=.06/.26 = 3/13

P(D=3|F) = P(F|D=3)*P(D=3)/(P(F|D=0)*P(D=0)+P(F|D=1)*P(D=1)+P(F|D=2)*P(D=2)+P(F|D=3)*P(D=3))=

.9*.1/(.1*.3+.2*.4+.3*.2+.9*.1)=.09/.26 = 9/26

P(D=0|U) = P(U|D=0)*P(0)/(P(U|D=0)*P(D=0)+P(U|D=1)*P(D=1)+P(U|D=2)*P(D=2)+P(U|D=3)*P(D=3))=

.8*.3/(.8*.3+.3*.4+.1*.2+.1*.1)=.24/.39 = 8/13

P(D=1|U) = P(U|D=1)*P(1)/(P(U|D=0)*P(D=0)+P(U|D=1)*P(D=1)+P(U|D=2)*P(D=2)+P(U|D=3)*P(D=3))=

.3*.4/(.8*.3+.3*.4+.1*.2+.1*.1)=.12/.39 = 4/13

P(D=2|U) = P(U|D=`)*P(`)/(P(U|D=0)*P(D=0)+P(U|D=1)*P(D=1)+P(U|D=2)*P(D=2)+P(U|D=3)*P(D=3))=

.1*.2/(.8*.3+.3*.4+.1*.2+.1*.1)=.02/.39 = 2/39

P(D=3|U) = P(U|D=3)*P(3)/(P(U|D=0)*P(D=0)+P(U|D=1)*P(D=1)+P(U|D=2)*P(D=2)+P(U|D=3)*P(D=3))=

.1*.1/(.8*.3+.3*.4+.1*.2+.1*.1)=.01/.39 = 1/39

P(N|D=0 = 1-.1-.8 = .1

P(N|D=1) = 1 - .2 - .3 = .5

P(N|D=2) = 1 - .3 - .1 = .6

P(N|D=3) = 1 - .9 - .1 = 0

P(D=0|N) = P(N|D=0)*P(D=0)/(P(N|D=0)*P(D=0)+P(N|D=1)*P(D=1)+P(N|D=2)*P(D=2)+P(N|D=3)*P(D=3))=.1*.3/(.1*.3+.5*.4+.6*.2+.0*.1)= .03/.35 = 3/35

P(D=1|N) = P(N|D=1)*P(D=0)/(P(N|D=0)*P(D=0)+P(N|D=1)*P(D=1)+P(N|D=2)*P(D=2)+P(N|D=3)*P(D=3))= .5*.4/(.1*.3+.5*.4+.6*.2+.0*.1)= .20/.35 = 4/7

P(D=2|N) = P(N|D=2)*P(D=2)/(P(N|D=0)*P(D=0)+P(N|D=1)*P(D=1)+P(N|D=2)*P(D=2)+P(N|D=3)*P(D=3))= .6*.2/(.1*.3+.5*.4+.6*.2+.0*.1)= .12/.35 = 12/35

P(D=3|N) = 0

If the result of the survey is an F, we have

P(D=0|F) = 3/26

P(D=1|F) = 4/13

P(D=2|F) = 3/13

P(D=3|F) = 9/26

If the order is 0, the return is -25*(1*4/13+2*3/13+3*9/26) = -25*47/26 = -1175/26 = -$45.19

If the order is 1, the return is 3/26*-70+(1-3/26)*80+-25*(1*3/13+2*9/26) = 515/13 = $39.62

If the order is 2, the return is (3/26*2+4/13)*-70+(1*4/13+2*(3/13+9/26))*80 + -25*9/26 =

1835/26 = $70.58

If the order is 3, the return is (3/26*3+4/13*2+3/13)*-70+(1*4/13+2*3/13+3*9/26)*80 =

795/13 = $61.15

We should order 2.

P(D=0|U) = 8/13

P(D=1|U) = 4/13

P(D=2|U) = 2/39

P(D=3|U) = 1/39

If we order 0, the return is (4/13*1+2/39*2+1/39*3)*-25 = -475/39 = -$12.18

If the order is 1, the return is 8/13*-70+(1-8/13)*80+-25*(1*2/39+2*1/39) =-580/39= -14.87

If the order is 2, the return is (8/13*2+4/13)*-70+(1*4/13+2*(2/39+1/39))*80 + -25*1/39 =

-2785/39= -$71.41

If the order is 3, the return is (8/13*3+4/13*2+2/39*1)*-70+(1*4/13+2*2/39+3*1/39)*80 =

-1780/13 = -$136.92

Order 0

P(D=0|N) = 3/35

P(D=1|N) = 4/7

P(D=2|N) = 12/35

P(D=3|N) = 0

If we order 0, the return is (4/7*1+12/35*2)*-25 = -220/7 = -$31.43

If the order is 1, the return is 3/35*-70+(1-3/35)*80+-25*(1*12/35) = 410/7 = $58.57

If the order is 2, the return is (3/35*2+4/7)*-70+(1*4/7+2*12/35)*80 = 340/7 = $48.57

We don't order 3, as the probability of 3 is 0

we order 1

We order 2 if there is an F, 0 if there is an N, and 1 if there is a U.

d) P(F) = .26

P(N) = .39

P(U) = .35

Then, the expected return is .26*1835/26 +-475/39*.39 + 410/7*.35 = $34.10

Since we make $25 if we just take 1, we should pay up to $34.10-$25 = $9.10 for the survey.

5 0

2 years ago

If a firm sells a floor at 6% this will:

MA_775_DIABLO [31]

Answer:

E.pay the holder the LIBOR interest above 6%.

Explanation:

On the off chance that the firm is selling the asset(floor) at 6%, it implies that the benefit is in contract and thus when selling the floor the holder of the floor should make installment to the mortgagee at LIBOR+6%, after which the deal will be concluded.

Therefore, the answer will be pay the holder LIBOR interest above 6%

3 0

2 years ago