B4B 1 2 13 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 A The following table contains the excess monthly returns for three companies and the market index. Month ED 1/1/2007 2/1/2007 3/1/2007 4/1/2007 5/1/2007 6/1/2007 7/1/2007 8/1/2007 9/1/2007 10/1/2007 11/1/2007 12/1/2007 1/1/2008 2/1/2008 3/1/2008 4/1/2008 5/1/2008 6/1/2008 7/1/2008 8/1/2008 9/1/2008 10/1/2008 11/1/2008 12/1/2008 1/1/2009 2/1/2009 3/1/2009 4/1/2009 5/1/2009 6/1/2009 7/1/2009 8/1/2009 9/1/2009 10/1/2009 11/1/2009 12/1/2009 47 Return 48 Vogt Industries 49 Isher Corporation Vogt Industries 50 Hedrock, Incorporated 51 Market Variance 52 0.0784 -0.0313 -0.0066 0.0150 0.0334 0.1257 -0.1006 -0.0858 0.0838 0.0415 -0.1561 -0.1054 -0.0157 -0.0183 -0.1251 0.4430 -0.1782 -0.2942 -0.0034 -0.0723 0.1650 -0.5794 0.2282 -0.1487 -0.1835 0.0693 0.3148 1.2736 -0.0386 0.0555 0.3178 -0.0501 -0.0514 -0.0292 0.2700 0.1248 Isher Corporation Hedrock, Incorporated -0.0193 -0.0258 -0.0004 -0.0064 Covariance with Market 0.0265 0.0088 -0.0277 0.0166 0.0037 -0.0050 0.0069 -0.0489 -0.0492 -0.0028 0.0325 0.0568 -0.0056 0.0652 -0.0244 0.0661 0.0995 -0.0015 -0.0282 0.0417 44 45 (Use cells A5 to E40 from the given information to complete this question.) 46 0.0103 0.0129 -0.0687 0.0011 0.0074 -0.1595 0.0447 0.0634 -0.0328 -0.0078 -0.0263 0.0296 0.0252 -0.0351 0.0120 0.0980 -0.0152 Beta 0.0033 -0.0397 -0.0341 0.0652 0.0013 -0.0428 -0.0473 -0.0942 0.0678 1.00 -0.1017 -0.0310 -0.0108 -0.0955 -0.2809 0.3769 -0.0549 0.1436 -0.3100 -0.3278 -0.1139 -0.5328 -0.3999 0.7289 0.3093 0.2619 0.1720 0.1203 0.1892 -0.0376 -0.1384 0.0871 -0.0493 E Market Index 0.0153 -0.0182 0.0088 0.0358 0.0350 -0.0186 -0.0358 0.0081 0.0376 0.0226 Required: Using the monthly excess returns above, calculate the stocks' covariance with the market and their betas. (Note: the covariance of the market with the market is just its variance.] -0.0521 -0.0069 -0.0644 -0.0234 -0.0115 0.0500 0.0224 -0.0800 -0.0147 0.0091 -0.0989 -0.1852 -0.0848 0.0221 -0.0774 -0.1005 0.0865 0.1092 0.0676 -0.0032 0.0816 0.0313 0.0451 -0.0281 0.0571 0.0284 F G H

Computing Financial Statement Measures The following pretax amounts are taken from the adjusted trial balance of Mastery Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000.   Balance, retained earnings, December 31, 2019 $ 45,000 Sales revenue 300,000 Cost of goods sold 105,000 Selling expenses 36,000 Administrative expenses 34,000 Gain on sale of investments 10,000 Unrealized holding gain on debt investments, net of tax 4,250 Prior period adjustment, understatement of depreciation from prior period (2019) 20,000 Dividends declared and paid 16,000     Required Compute the following amounts for the year-end financial statements of 2020. Do not use negative signs with any of your answers. Round the per share amount to two decimal places. Item Amount a. Gross profit (2020).   b. Operating income (2020).   c. Net…

The following table shows CLV for A company. What is the CLV of the first year (please round it up)? Profit per Annual Customer Annual Year CustomerRetention Accounts Discount Discount ($) Probability RemainingRate 0 1 50 2 70 3 ↑ 75 41 42 43 44 45 90% 87% 85% 100 90 78.3 66.5 0.1 0.1 Cumulative Discounted Cash Flow ($)0 0.1 Factor 0.91 0.83 0.75

Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021-2015 ($ thousands) Sales 2021 Cost of goods sold $ 1,769 1,271 2020 $ 1,549 2019 2018 2017 2016 2015 $ 1,410 $ 1,292 $ 1,206 $ 1,121 $ 919 1,034 889 778 723 676 539 Gross profit 498 515 521 514 483 445 380 Operating expenses Net income 377 295 271 200 173 171 142 $ 121 $ 220 $ 250 $ 314 $ 310 $ 274 $ 238 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021-2015 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity 2021 2020 2019 2018 2017 2016 2015 $ 108 773 $ 142 812 $ 148 735 2,797 2,036 1,779 $ 151 564 1,499 $ 157 496 $ 155 $ 160 470 332 1,346 1,144 829 72 65 40 71 60 61 32 e B 220 220 220 220 3,422 3,409 2,982 1,683 $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 1,740 1,546 $ 3,596 $ 2,900 1,327 Current liabilities…