This week you will perform a basic linear regression. * Please be aware of the very strict data requirement for running linear regression

Textbooks
1. OpenStax, Introductory Statistics. OpenStax. 19 September 2013. http://cnx.org/content/col11562/latest/
2. Tyrrell, S. 2009. SPSS: Stats practically short and simple (1st edition). bookboon.com. Ebooks and textbooks from Bookboon.com https://oerstatistics.wordpress.com/2016/03/05/spss-books/

Original Question:

This week you will perform a basic linear regression. * Please be aware of the very strict data requirement for running linear regression: your DV and IV both have to be continuous variables. (Most variables at interval/ratio level are continuous variables.) This rule is solid for DV: if your DV is a nominal or ordinal variable, you CANNOT use it as the DV for regression, not even when it is converted to a dummy variable (b/c the regression is no longer linear). It is a necessity that your DV is a “continuous” variable with interval/ratio level of measurement.
If your current DV won’t work for regression test, please choose a “continuous” variable from GSS data set as your temporary DV for the week in order to practice regression analysis. Some examples of “continuous” variables from GSS 2012 data: tvhours, hrs1, etc. You don’t have to include regression test in your final portfolio if your DV won’t work for regressing test. Keep in mind, regression is also a form of significance test. Your porfolio only needs ONE significance test (we have learned: independent sample t-test, dependent sample t-test, Chi-square, and regression.)

Creating dummy variables
If an IV is not continuous (like race, sex), you could make things work by creating dummy variables based on these variables. For example, based on variable “sex,” we can make a “male dummy variable” or a “female dummy variable.” Based on variable “race,” we can create a “white dummy variable” or “black dummy variable,” or “other dummy variable.”
By custom, we’ll name the dummy variable using the value we coded as 1. For example, if we denote “male” as 1, female as 0, we’ll name this dummy as “male dummy variable.” If we denote “white” as 1, then we’ll name this dummy as “white dummy variable.” This naming method helps readers/researchers remember/understand what dummy variables stand for in a study.

Here is a youtube video which shows the essential steps of creating dummy variables:https://www.youtube.com/watch?v=R0qc4rzr9ik
In this week’s forum discussion, you are required to run a linear regression using:
1. your DV (if your DV is not a continuous variable, pick one from the GSS 2012 data set as your temporary DV for the week so you can practice regression)
2. and two dummy variables created based on variable “sex” and “race” in the GSS 2012 data set.

SPSS command to run linear regression
Analyze – Regression – Linear

Output interpretation
The proper way to interpret linear regression is writing the regression equation. Here is an example:
DV: educ (highest year of school completed, a continuous variable at I/R level)
IV: male dummy variable (based on variable “sex”) and white dummy variable (based on variable “race”)

See equation below. We use * to mark the variable that is statistically significant.
Educ=13.031-.054male+.696white*
Here is the fun part: prediction of respondents’ highest year of school completed based on their race and sex.
Based on this equation:
A white male by average will have 13.673 years of education: 13.031-.054*1+.696*1=13.673
A nonwhite female by average will have 13.031 years of education: 13.031-.054*0+.696*0=13.031

Reply to the following response with 200 words minimum. (please make response as if having a conversation, respond directly to some of the statements in below post.)

Hello Class

This was quite the challenge for me. I think that I have mastered dummy variables though. I had to use them for both independent variables.

DV: Highest year of school completed

IV: Living with mother and father at the age of 16 and Black respondents

Black people who lived with both mother and father have an average 10.781 years of education.
10.901-.791*1+.671*1=10.781

Other races who lived with both mother and father have an average of 10.901 years of education.
10.901-.791*0+.671*0=10.901

Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 10.901 .069 157.885 .000
Black .791 .037 .086 21.460 .000
MotherandFather .671 .028 .097 24.166 .000
a. Dependent Variable: Highest year of school completed

How can Evoe Springs overcome/ work around the lack of social acceptance for Spas in India?

You are to write a one-page, typed homework assignment. The font should be no smaller than 12-point. Please take the perspective of a senior marketing manager making marketing recommendations to upper management (CEO, CFO, CMO, etc.). The memo should not be a rehash of the facts of the case, but rather a summary of your recommendations for how the company should move forward, and the supporting rationale. These memos should be well written and professionally presented. Please use the following format:

Key Issue/Issues (concise statement)
1-
2-
Recommendations (to address the issue/s)
1.
2.
3. (or however many you think are appropriate)

Rationale (to support your recommendations)
1.
2.
3. (support for each recommendation)

Example:
Key Issue/Issues:
1. How can Evoe Springs overcome/ work around the lack of social acceptance for Spas in India?
2. Who should Evoe Springs target?

Recommendations:
• 1- Make it clear through advertisements that Evoe Springs Spa is more than a massage parlor
• ● Divide the facility in sections: Men, Women, Family
o ○ Women can feel more comfortable
o ○ Children friendly environment
• ● Show more men in advertisements
• ● Promote de-stressing benefits of spas
2-
• Larger, less informed segment—> SNAILS
o ○ Emphasize reactive approach
 Partner with medical industry
 Provide research
 Ads in magazines at hospitals and doctors’ offices
o ○ Proactive approach
 Repackage offerings- emphasizing affordability and wellness
 Coupons and discounts
• ● More specifically…
○ Male professionals
 Happy hour from 4-7pm
 Open up new locations
● Urban city ● Mumbai

Rationale (to support your recommendations)
1-
● Website allows for easier navigation, longer visits, and returning visitors
● Educates consumers on CFI history, ownership model, employment culture
● Introduces online market with established, popular products
● Game/giveaways bring younger visitors

2-
● Experimenting on a small scale prevents a failed product launch
● Capitalizing and promoting “family-owned” feel through consumer engagement and personalized service
● Follow up survey brings more visitors to company website

The Walt Disney Company is one of the world’s leading producers and providers of entertainment and information

1. Assignment No: 2:

Project Writing
The Walt Disney Company is one of the world’s leading producers and providers of entertainment and information. Walt Disney Company decided to start its operation in Saudi Arabia with a theme Park named as Disney Land. The Company hired you as Marketing Manager of Saudi Arabian Region.
Assignment Objectives & Requirements:
1. To Market the Disney Land in Kingdom of Saudi Arabia, you have to wite:
a. Introduction about Disney Land business.
b. Product and type of services.
c. Business statement.
d. Business vision.
e. Business objective.
2. Develop a Marketing Plan for Disney Land in Saudi Arabia.
3. Identify its Micro and Macro Environment
4. Define SWOT analysis to Disney Land.
5. Analyze the industry by applying Porters Five Forces
6. How Disney will establish, develop, and enhance mutually beneficial relationships with customers?
7. How will you plan for marketing Research and maintenance of the customer information?
8. For managing brands what resources you will use?
9. How will you create value propositions to meet the requirements of target customers?
10. What procedures and strategies will you follow use when making pricing decisions?
11. Categorize marketing and advertising strategy and method.
12. Describe what are the ethics and laws within your Disney Land.
13. Conclude your report.
Assignment Workload:
• This assignment is an individual assignment.
• The word count for this assignment should be between 2500 to 3000 words.
Assignment Regulations:
• All students are encouraged to use their own words.
• Student must apply Harvard Referencing Style within their reports.
• Student is allowed to cite 10% from the word limit (3000 word limit means 300 words can be cited).
• A mark of zero will be given for any submission that includes copying from other resource without referencing it

IN 490 Quiz 3 Applying Financial Institution Concepts Select a commercial bank To analyze and obtain a 2015 annual report for That institution

FIN 490 Quiz 3 Applying Financial Institution Concepts Select a commercial bank To analyze and obtain a 2015 annual report for That institution. most annual re Ports are available online. A±er obtaining The annual report, use The information provided in The document To answer The questions below. ²he purpose of This assignment is To allow you To re Late The Theory in The TexTbook To The partcular ³nancial instTuton of your choice. 1. Commercial Bank Operations For The commercial bank ThaT you selecTed, use iTs annual reporT or any oTher relaTed informaton To answer The following questons: a. Identfy The Types of deposiTs ThaT The commercial bank uses To obTain mosT of iTs funds (sources of funds). If you cannoT easily describe in words, you may prepare a charT, graph, or Table ThaT shows The approximaTe percenTage of each source of funds. b. Identfy The main uses of funds by The bank (uses of funds). If you cannoT easily describe in words, you can prepare a charT, graph, or Table ThaT shoes The approximaTe percenTage of each use of funds. c. Summarize any sTaTemenTs made by The commercial bank in iTs annual reporT abouT how recenT or poTental regulatons will a´ecT iTs performance. 2. Commercial Bank ManagemenT For The commercial bank ThaT you selecTed, use iTs annual reporT or any oTher relaTed informaton To answer The following questons: a. Asses The bank’s balance sheeT as well as any commenTs in iTs annual reporT abouT The gap beTween iTs raTe-sensitve asseTs and iTs raTe-sensitve liabilites. Does iT appear ThaT The bank has a positve gap or a negatve gap? b. Does The bank use any meThods To reduce iTs gap and Therefore reduce iTs exposure To inTeresT raTe risk? c. Summarize any sTaTemenTs made by The bank in iTs annual reporT abouT how iT aµempTs To limiT iTs exposure To crediT risk on The loans iT provides. 3. Commercial Bank Performance For The commercial bank ThaT you selecTed, use iTs annual reporT or any oTher relaTed informaton To answer The following questons: a. DeTermine The bank’s inTeresT income as a percenTage of iTs ToTal asseTs. b. DeTermine The bank’s inTeresT expenses as a percenTage of iTs ToTal asseTs. c. DeTermine The bank’s neT inTeresT margin. d. DeTermine The bank’s noninTeresT income as a percenTage of iTs ToTal asseTs. e. DeTermine The bank’s noninTeresT expenses (do noT include The additon To loan loss reserves here) as a percenTage of iTs ToTal asseTs. f. DeTermine The bank’s additon To loan loss reserves as a percenTage of iTs ToTal asseTs. g. DeTermine The bank’s reTurn on asseTs. h. DeTermine The bank’s reTurn on equiTy. i. Identfy The bank’s income sTaTemenT iTems described previously ThaT would be a´ecTed if inTeresT raTes rise in The nexT year, and explain how They would be a´ecTed. j. Identfy The bank’s income sTaTemenT iTems described previously ThaT would be a´ecTed if U.S. economic conditons deTerioraTe, and explain how They would be a´ecTed

DataPoint Engineering is considering the purchase of a new piece of equipment for $230,000

Data Point Engineering is considering the purchase of a new piece of equipment for $230,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $130,000 in non depreciable working capital. Thirty-two thousand dollars of this investment will be recovered after the sixth year and will provide additional cash flow for that year. Income before depreciation and taxes for the next six are shown in the following table. Use Table 12–11, Table 12–12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year Amount
1 $ 182,000
2 158,000
3 128,000
4 113,000
5 94,000
6 84,000

The tax rate is 30 percent. The cost of capital must be computed based on the following:

Cost
(aftertax) Weights
Debt Kd 8.50 % 30 %
Preferred stock Kp 12.20 20
Common equity
(retained earnings) Ke 17.00 50

a.

Determine the annual depreciation schedule. (Do not round intermediate calculations. Round your depreciation base and annual depreciation answers to the nearest whole dollar. Round your percentage depreciation answers to 3 decimal places.)

Year Depreciation
Base Percentage
Depreciation Annual
Depreciation
1 $ $
2
3
4
5
6

$

b.

Determine the annual cash flow for each year. Be sure to include the recovered working capital in Year 6. (Do not round intermediate calculations and round your answers to 2 decimal places.)

Year Cash Flow
1 $
2
3
4
5
6

c.

Determine the weighted average cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted average cost of capital %

d-1.

Determine the net present value. (Use the WACC from part c rounded to 2 decimal places as a percent as the cost of capital (e.g., 12.34%). Do not round any other intermediate calculations. Round your answer to 2 decimal places.)

Net present value $

d-2. Should DataPoint purchase the new equipment?

There are two calls on the same stock. Both expire in 6 months and are identical in every way except the exercise price

Question 1

There are two calls on the same stock. Both expire in 6 months and are identical in every way except the exercise price. If Call A has an exercise price of $40 and Call B has an exercise price of $50, which call will have a higher price?
A.

Call A
B.

Call B
C.

Cannot be determined

Question 2

If the present value of the exercise price is $20, the call option is selling for $5, and the market price of the stock is $22. If the put is selling for $5, should you buy it? Why or why not?
A.

Yes, you will make $2
B.

No, you will lose $3
C.

No, you will lose $2
D.

Yes, you will make $3

Question 3

Suppose you have written both a put and a call on the same stock with the same exercise price and the same expiration date (so you are short both options). You are best off if the stock price on the expiration date is
A.

Below the exercise price
B.

Equal to the exercise price
C.

Above the exercise price
Question 4

A decrease in ____ will decrease the price of both a call and a put on the same stock
A.

Stock price
B.

Exercise price
C.

Volatility
D.

Dividends
Question 5

Which of the following is an example of a real option?
A.

Foothold in an expanding market
B.

End a project early
C.

Wait for better market conditions
D.

All of these are real options
Question 6

You buy 27 call contracts with an exercise price of $80. The current price of the stock is $81. The ask price is $1.33 per contract. What is the cost of the option?
Question 7

The minimum option value
A.

speculative value
B.

intrinsic value
C.

option price

Question 8 Risk-neutral valuation is one way to estimate the value of the option before maturity

True

False

Question 9

If you are long the option, then you can choose whether to exercise or not.

True

False

Question 10

A put has an exercise price of $12 and 9 months to maturity. The stock price is $10. Find the intrinsic value. If the option price is $2.75, what is the speculative value?
A.

Intrinsic = 2; speculative = .75
B.

Intrinsic = 2; speculative = 2.75
C.

Intrinsic = 0; speculative = 2.75
D.

Intrinsic = 0; speculative = .75

The two companies that need to be compared is PayPal and Square Inc. For this assignment, apply the next three steps of the nine-step assessment process detailed in Assessing a Company’s Future Financial Health (i.e., Step 5: External Financing Need, Step 6: Target Sources of Finance, and Step 7: Viability of 3-5 Year Plan) to compose further assessment of the company/competitor pairing analysis as below: Current financial plan. Interpret current equity valuations in order to recommend strategic solutions regarding future financial goals. Consider how stock splits and stock dividend allocations can impact the plan. Future external financing needs. To support growth, companies need capital, and external financial needs are vital any firm’s future success. Describe external financing needs sufficient to support your ongoing analytical assumptions and pro forma financial statements for your chosen company and competitor. Access to target sources of external financing. You will need to consider the amount of financing, timing, length of time required, and deferability of financing options. Viability of a 3-5 Year Plan. Assess the consistency of the plan with the firm’s goals, and the achievability of both the operating plan and the financing plan you are proposing

The two companies that need to be compared is PayPal and Square Inc.

For this assignment, apply the next three steps of the nine-step assessment process detailed in Assessing a Company’s Future Financial Health (i.e., Step 5: External Financing Need, Step 6: Target Sources of Finance, and Step 7: Viability of 3-5 Year Plan) to compose further assessment of the company/competitor pairing analysis as below:

Current financial plan. Interpret current equity valuations in order to recommend strategic solutions regarding future financial goals. Consider how stock splits and stock dividend allocations can impact the plan.
Future external financing needs. To support growth, companies need capital, and external financial needs are vital any firm’s future success. Describe external financing needs sufficient to support your ongoing analytical assumptions and pro forma financial statements for your chosen company and competitor.
Access to target sources of external financing. You will need to consider the amount of financing, timing, length of time required, and deferability of financing options.
Viability of a 3-5 Year Plan. Assess the consistency of the plan with the firm’s goals, and the achievability of both the operating plan and the financing plan you are proposing

Suppose you borrowed $10,000 at a rate of 5% and must repay it in 3 equal installments at the end of each of the next 3 years

1. Suppose you borrowed $10,000 at a rate of 5% and must repay it in 3 equal installments at the end of each of the next 3 years. How much would you still owe at the end of the second year, after you have made the second payment?

2. Person A and Person B each have $250,000 in an investment account. No other contributions will be made to their investment accounts. Both have the same goal: They each want their account to reach $1.1 million, at which time each will retire. Person, A has his money invested in risk-free securities with an expected annual return of 4%. Person B, has their money invested in a stock fund with an expected annual return of 8%. How many years after Person B retires will Person A retire?

3. What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1,250?

4. At a rate of 6.5%, what is the future value of the following cash flow stream?

Years: 0 1 2 3 4
| | | | |

5. What’s the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the interest rate is 5%?

Jack Tar, CFO of Sheetbend & Halyard, Inc., opened the company confidential envelope. It contained a draft of a competitive bid for a contract to supply duffel canvas to the U.S. Navy.

Jack Tar, CFO of Sheetbend & Halyard, Inc., opened the company confidential envelope. It contained a draft of a competitive bid for a contract to supply duffel canvas to the U.S. Navy. The cover memo for Sheetbend’s CEO asked Mr. Tar to review the bid before it was submitted.
The bid and its supporting documents had been prepared by Sheetbend’s sales staff. It called for Sheetbend to supply 100,000 yards of duffel canvas per year for 5 years. The proposed selling price was fixed at $30 per yard.
Mr. Tar wa not usually involved in sales, but this bid was unusual in at least two respects. First, if accepted by the navy, it would commit Sheetbend to a fixed-price, lont-term contract. Second, producing the duffel canvas would require an investment of $1.5 million to purchase machinery and to refurbish Sheetbend’s plant in Pleasantboro, Maine.
Mr. Tar set to work and by the end of the week had collected the following facts and assumptions:
– The plant in Pleasantboro had been built in the early 1900s and is now idle. The plant was fully depreciated on Sheetbend’s books, except for the purchase cost of the land (in 1947) of $10,000.
-Now that the land was valuable shorefront property, Mr.Tar thought the land and the idle plant could be sold, immediately or in the near future, for $600,000.
-Refurbishing the plant would cost $500,000. This investment would be depreciated for tax purposes on the 10-year MACRS schedule.
-The new machinery would cost $1million. This investment could be depreciated on the 5-year MACRS schedule.
-The refurbished plant and new machinery would last for many years. However, the remaining market for duffel canvas was small, and it was not clear that additional orders could be obtained once the navy contract was finished. The machinery was custom-built and could be used only for duffel canvas. Its seconhand value at the end of 5 years was probably zero.
-Table 9-4 shows the sales staff’s forecasts of income from the navy contract. Mr. Tar reviewed this forecast and decided that its assumptions were reasoable, except that the forecast used book, not tax, depreciation.
-But the forecast income statment contained no mention of working capital. Mr. Tar thought that working capital would average about 10% of sales.

Armed with this information, Mr. Tar constructed a spreadsheet to calculate the NPV of the duffel canvas project, assuming that Sheetbend’s bid would be accepted by the navy.
He had just finished debugging the spreadsheet when another confidential envelope arrive from Sheetbend’s CEO. It contained a firm offer from a Maine real estate developer to purchase Sheetbend’s Pleasantboro land and plant for $1.5 million in cash.
Should Mr. Tar recommend submitting the bid to the navy at the proposed price of $30 per yard? The discount rate for this project is 12%

This project MUST be done on an excel spreadsheet and be submitted to me AS ONE SPREADSHEET WITH THE FILE NAME BEING YOUR NAME

SPREADSHEET PROJECT GUIDELINES 1) This project MUST be done on an excel spreadsheet and be submitted to me AS ONE SPREADSHEET WITH THE FILE NAME BEING YOUR NAME . 2) This is an individual assignment and you cannot collaborate with your classmates or others for this assignment. 3) The assignment is due at 11.30pm on November 17 th . You will lose a lot of points if the submission is late. 4) The assignment particulars are as follows: You will need to collect the stock price data for any 2 companies of your choice and the S&P 400 index. Choose companies that are in different industries. Collect the end-of-month prices for the last 21 months of your chosen stocks and the S&P 400 and set them on the spreadsheet. Taking this raw data, compute the monthly returns for all (there should be 20 returns). Make sure that I am able to see the cell formulas for each computation . Next, compute the mean rate of return and the standard deviation of returns for both your stocks and the stock market. Compute the beta value for each stock and plot the characteristic lines on 2 graphs. Compute the correlation coefficient for the 2 stocks. Plot the returns of your stocks against each other on a graph within the spreadsheet. Next, assume that you construct a portfolio where you put equal money in each of your 2 stocks. Compute the 20 monthly rates of return for the portfolio and the standard deviation of returns of the portfolio. Finally, within the spreadsheet discuss in DETAIL your findings regarding risk/return of your portfolio as compared to the risk/return characteristics of the 2 individual stocks. These comments must be detailed with a complete analysis

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