<u>Solution and Explanation:</u>
a) 51% of users of mobile phones use their phone at least once per hour,
It is a binomial distribution with n = 150, p = 0.51
mean = np = 150 multiply with 0.51 = 76.5
SD= sqrt(np(1-p) )= 6.1225
Since np and n(1-p) > 5, we can assume the distribution is normal.
B) please see the attached file.
c) It is a binomial distribution with n = 150, p = 0.02
mean = np = 150*0.02 = 3
SD= sqrt(np(1-p) )= 1.71464
Since np < 5, we cannot assume the distribution is normal.
Answer:
1.25
Explanation:
The Capital Asset Pricing model will be used
ße = ßa × [Ve + Vd(1 – T)] / Ve
Here
ße = 1.08
Ve = Value of equity $50 million
Vd = Value of debt $10 million
T is tax rate which is 21%.
By putting the values, we have:
ße = 1.08 × [50 + 10(1 – 21%)] / 50
ße = 1.25
The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.
Solution:
S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )
S2 total is $162,000 + $126,000 = $288,000
S2 $126,000 is allocated 19.7% to P2 or $81000
Under the step-method of cost allocation,
the amount of costs allocated from $2 to P2 would be $81000
Answer:
Explanation:
Present value of note = Annual payment x present value annuity factor
Annual payment = 8,400
PVAF = 4,7665
= $ 8,400 x 4.7665
= $ 40,038.60
So, the present value of note is $ 40,038.60
Answer:
Fixed costs= $300,000
Explanation:
Giving the following information:
Selling price per unit= $20
Variable expenses= $14
Break-even point in units= 50,000
<u>To calculate the fixed costs, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
50,000= fixed costs / (20 - 14)
50,000*6= fixed costs
Fixed costs= $300,000
