63 803
Assignments Done
99,5%
Successfully Done
In August 2018

# Answer to Question #6675 in Statistics and Probability for Melanie

Question #6675
I need to determine the value of z so that the area under the standard normal curve in the right tail is .0505.

Also, finding the area under the standard normal from z=0 to z= -3.75. Is there such a value or is it approx 0?
e. $140.0$90.0 $410.0 Explanation: To take start capital structure (25% debt and 75% equity) we have next capital budget (from$150 mln):
To equity capital: (100% - 65%)*$150 mln =$52.5 mln, capital budget = $52.5 mln / 0.75 =$70 mln

(1) if debt ratio is raised to 75%, the equity ratio is 25%, capital budget = $52.5 mln / 0.25 =$210 mln,
the increase is $210 -$70 = $140 mln; (2) retained income = (100% - 20%)*$150 mln = $120 mln, if 25% debt and 75% equity =&gt; =&gt; capital budget =$120 mln/0.75 = $160 mln =&gt; the increase is$160 - $70 =$90 mln;
(3) we have retained income $120 mln, 75% debt and 25% equity =&gt; capital budget =$120 mln / 0.25 = $480 mln, the increase is$480 - $70 =$410 mln;

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!