Question: (a) Develop a user defined function MyVar that calculates a variance by using the following equation: MyVar = 5 17 (3x7 Avg) 2n-1 where

(a) Develop a user defined function "MyVar" that calculates a variance by using the following equation: MyVar = 5 17 (3x7 Avg) 2n-1 where Avg represents the average of variable X,. Use the values given on the sheet "P3a" to test the function. Remember that this function must have three arguments (X, Avg, and n). (b) Develop a user defined function "MySummer" that calculate the weighted average with the equation, MySummer (log(5x1) + xi (log (5x) +2x) . Use the values given on the sheet "P3a" to test the function. Reminder: this function must have two arguments, X, and n. (c) Write a macro function to estimate the Macaulay duration. Use the values given on sheet "P3a" to test your function. (d) Suppose Hollande Company uses debt, preferred stock and common stock to finance its capital budget and uses CAPM to compute its cost of equity. The capital structure is 25% debt, 32% preferred stock and 43% common stock. Before tax cost of debt is 4.35% and tax rate is 21%. The cost of preferred stock is 11.25%. The Risk free rate = 2.25% and market risk premium = 9.57%. Hollande Company has a beta of 1.51. Write a user defined function to compute the WACC. Hint the WACC is given by: WACC = Wd*Rd*(1-t) + Wps*Rps + Wcs*Rcs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Here is the user defined function to calculate variance Function MyVarX Avg n Dim sum ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Discuss the ethical dilemmas related to telecommuting (5) and provide some of the solutions (10).

Suppose Hollande Company uses debt, preferred stock and common stock to finance its capital budget and uses CAPM to compute its cost of equity. The capital structure is 25% debt, 32% preferred stock...

Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...

If a check correctly written and paid by the bank for $ 648 is incorrectly recorded on the company's books for $ 684 , the appropriate treatment on the bank reconciliation would be to THE ANSWER IS...

Problem refer to the encoding matrix Encode the message "THE GRAPES OF WRATH" using matrix A. 3 1

Can we invoke the true and fair view override rule? The Companies Act 1985 requires directors to lay before the company in a general meeting copies of the companys annual accounts, the directors...

what employers want from applicants for entry-level positions and ways to develop these attributes while in school (e.g., suggested coursework and experiences);

The Leslie Independent School District (LISD) services all of its long-term debt through a single Debt Service Fund. The LISD DSF balance sheet at December 31, 20X4, appeared as follows: The...

On June 15, The Arab Bank received deposits by checks drawn on other local banks amount of $50000. In the clearance room, it found checks drawn on it clients' current accounts amounted $ 35000. All...

You are a young CPA just starting your own practice in Hollywood, California, after five years experience with a Big 4 firm. You have several connections in the entertainment industry and hope to...

13 If an environmental agency is charging polluters a tax to reduce their level of pollution down to the optimal level, what level of tax will be required to achieve that outcome? out of O a. A tax...

Customer Service E-mail You recently paid $250 to Keller & Jenkins for adding a provision in your will to establish a scholarship endowment at your alma mater. While eating lunch in a crowded...

1. When a member with a minority interest in an LLC acquires enough ownership interests in the LLC to hold a majority interest: a. a change of ownership occurs b. reassessment of the entire parcel of...

13) On December 31, 2023, Vivid Corporation prepared adjusting entries that included the following items: Depreciation expense: $43,400. Accrued sales revenue: $40,600. Accrued expenses: $16,800....

Accounting for Gift Cards Assume Ikeo Inc. sold $160,000 of gift cards during the last two weeks of December 2020. No gift cards were redeemed in 2020, while $144,000 of the gift cards were redeemed...

Continue Mini Case 1 (the Accounting Cycle Part 1), the following information is available for FastForward in September that may need adjustments.1 1. By the end of September, FastForward has...

A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the contract is quoted at a settle price of 529, then the value of one wheat futures contract is?...

What tools are available to help shoppers compare prices, features, and values and check other shoppers opinions?

Develop a user-friendly program to model the steady-state distribution of temperature in a rod with a constant heat source using the finite-element method. Set up the program so that unequally spaced...

The general form for a three-dimensional stress field is given by where the diagonal terms represent tensile or compressive stresses and the off-diagonal terms represent shear stresses. A stress...

Solve the following problem over the interval from x = 0 to 1 using a step size of 0.25 where y(0) = 1. Display all your results on the same graph. dy/dt = (1 + 4t) y (a) Analytically. (b) Euler's...

In the transmission of digital information, the probability that a bit has high, moderate, or low distortion is 0.01, 0.04, and 0.95, respectively. Suppose that three bits are transmitted and that...

Bedard Ltd. reported net income of 300,000 in 2019 and had 200,000 ordinary shares outstanding throughout the year. Also outstanding all year were 45,000 options to purchase ordinary shares at 10 per...

a. Use the data entry method in your scientific calculator to enter the five measurements. Recall the proper memories to find the sample mean and standard deviation. b. Verify that the calculator...