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yaroslaw [1]
3 years ago
6

A company is producing christmas light strings containing 20 small bulbs. Suppose the success or failure of a bulb is independen

t of the success or failure of other bulbs and the probability that a bulb is lightning properly is 0.92.
a. When you order a christmas light string, what is the probability of at most 3 of those small bulbs are not lightning properly.
b. Find the mean and the variance of bulbs in a string that are not lightning properly.
Business
1 answer:
monitta3 years ago
6 0

Answer:

Explanation:

Number of bulbs = 20

Success of a bulb lightning properly = 0.92

Success of a bulb not lightning properly = 0.08

We have to find the probability of atmost 3 bulbs not lightning properly -

The random Variable X follows binomial distribution

= 0.929385

Mean and variance of bulbs in a string that are not lightning properly is given by

Mean of binomial distribution or E(X) = n*p = 20*0.08 = 1.6

Variance of binomial distribution or V(X) = n*p*(1-p) = 20*0.08*0.92 = 1.472

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Why is it important to maintain network relationships, even after you have found a job?
Svet_ta [14]

Answer:

has to be b

Explanation:

ik this feom the website

4 0
2 years ago
On December 31, 2018, Adelphi Corporation has outstanding 500 shares of $100 par value, 4% cumulative and nonparticipating prefe
alexandr402 [8]

Answer:

$5.50 dividend per share to common stock

Explanation:

In case a company has cumulative preference shares then the company has to pay preference dividend in arrears

Here, preference dividend was not paid in the year 2017

Preference dividend for 2017 = 500 \times $100 \times 4%

= $2,000

Since the dividend is paid in between the year 2018, dividend is paid for the year 2017 and not for 2018 thus preference dividend is for a year, only for 2017

Therefore, dividend to common equity = $35,000 - $2,000 = $33,000

Dividend per share = $33,000/6,000 = $5.50 per share

6 0
4 years ago
You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a rep
AleksandrR [38]

Answer:

Value of the company is $140.70

Explanation:

We need first of all turn the equity beta from an unlevered to a levered beta with the below formula:

BU = BL / [1 + ((1 - Tax Rate) x Debt/Equity)]

BL=BU*[1 + ((1 - Tax Rate) x Debt/Equity)]

BU is levered beta

BL is the levered beta which is unknown

tax rate is 30% or 0.3

debt/equity =0.4

BU is 1.7

BL=1.7*[1 + ((1 - 0.3) x 0.4)

BL=1.7*(1+(0.7*0.4)

BL=1.7*(1+0.28)

BL=1.7*1.28

BL=2.176

Cost of equity=Rf+beta*market risk premium

Rf is the risk free rate of 6%

market risk premium is 11%

cost of equity=6%+2.176*11%

cost of equity=6%+23.94%

cost of equity =29.94%

In valuing the company the stock price formula below can be adapted

stock price=Do*(1+g)/(r-g)

Do is the dividend but can be replaced with a proxy free cash flow,since dividend per share is meant to compute price of one share,but FCF is to calculate the value of the entire company.

The free cash flow is computed below

FCF=EBIT*(1-t)+depreciation and amortization-capital expenditure-net increase in working capital

FCF=$56*(1-0.3)+$5.6-$5.3-$2.7

FCF=$36.8 million

g is the growth rate of FCF at 3%

r is the cost of equity of 29.94%

value of the company=$36.80*(1+3%)/(29.94%-3%)

value of the company=$36.80*1.03/0.2694

                                     =$140.70

5 0
3 years ago
Which of the following is not a source of funding
Snezhnost [94]

Answer:

Correct option is

C. Issue of bonus shares

By source of funds we mean that money is coming in the business. In the given question all of them are sources of funds except issue of bonus shares. The company issues bonus shares out of its own reserves and hence there is no money received by the company for such shares. Rest all being sale of fixed assets, issue of share capital and issue of shares for consideration other than cash are a part of sources of funds.

4 0
3 years ago
Gelbart Company manufactures gas grills. Fixed costs amount to $32,510,400 per year. Variable costs per gas grill are $520, and
Elina [12.6K]

Answer:

the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills

Explanation:

The computation of the number of gas grills must Gelbart Company sell to break even is given below:

= Fixed cost ÷ contribution margin per unit

= $32,510,400 ÷ ($1,300 - $520)

= $32,510,400 ÷ $780

= 41,680 gas grills

Hence, the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills

4 0
3 years ago
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