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4 years ago

Studnets in the new MBA class at a state university has the following specialization profile:

Business

1 answer:

Korvikt [17]4 years ago

5 0

Answer and Explanation:

a. The computation of the probability for a student either a finance or marketing major is shown below:

= Number of expected outcomes ÷ total number of outcomes

= (67 + 45) ÷ (67 + 45+ 51 + 18)

= 112 ÷ 181

= 0.6188

b. Now for mutually exclusive, we make the assumption that the none of the students has taken for multiple specializations also nothing is mentioned in the question

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Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will

Solnce55 [7]

Answer:

Duration of liability (perpetual) = (1 + y) / y

= (1 + 17.5%) / 17.5%

= 6.71

Value of liability = Cash Flow / yield

= $3.5 million / 17.5%

= $20 million

a. Assume you invest w in 5-year bond and 1-w in 25-year bond such that the duration of the portfolio is 6.71

6.71 = w x 4 + (1 - w) x 16

w = (16 - 6.71) / (16 - 4)

w = 77% in 5-year bond

1 - w = 28% in 25 year bond

Market Value of 5 year bond = 77% * $20 million = $15.4 million

Market Value of 20 year bond = 23% * $20 million = $4.6 million

b. Market Price of 20 year bond can be calculated using PV function on a calculator

N = 25, I/Y = 17.5%, PMT = 9, FV = 100

Price = Present Value (25,17.5%, 9 ,100)

Price = 52.29042644

Price = $52.30

Par Value of 25 year bond = Market Value /% Price

Par Value of 25 year bond = $4.6 million / 50.83%

Par Value of 25 year bond = $9,049,774

6 0

3 years ago

Managers involved in negotiation should:

Anni [7]

Answer:

b. Verify whether there is only a fixed set of alternatives.

Explanation:

Exercising premature judgement might lead to a dangerous outcome. The manager ought to be patient and explore all possible solutions.

3 0

3 years ago

During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, p

Anika [276]

Answer:

$20

Explanation:

Given that,

Cash collected from the customers = $100

Cash paid to suppliers = $60

Cash paid to employees and other creditors = $20

Depreciation expense = $10

Therefore,

Clarke’s Cash Flow from Operations during the quarter ended 3/31/2015:

= Cash collected from the customers - Cash paid to suppliers - Cash paid to employees and other creditors

= $100 - $60 - $20

= $20

3 0

3 years ago

Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a building (basis

Olegator [25]

Answer:

correct option is $16,000

Explanation:

given data

basis = $30,000

fair market value = $200,000

liability = $16,000

current E&P = $30,000

to find out

Puffin's E&P after taking into account the distribution

solution

we know that E and P will decrease by higher of the adjusted basis and fair market value of the distributed property

so distribution loss is not taken into consideration to find out E and P

and we have given current E & P of Puffin is = $30,000 that is reduce to

reduce = basis - liability

reduce = $30000 - $16000 = $14000

so after distribution current E & P remaining will be $16000

so correct option is $16,000

5 0

4 years ago

Shondra’s family’s monthly net income is $6,654. The family’s budget is shown in the circle graph below. The family decides to i

Serga [27]

Answer:

B. $466

Explanation:

5 0

3 years ago