Use the Following Information to Answer the Question(s)below

question 51

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-The market capitalization of d'Anconia Copper after this transaction takes place is closest to:

• A)$800 million.
• B)$900 million.
• C)$1100 million.
• D)$1200 million.

Understand the impact of tied observations on the distribution of the Wilcoxon rank sum.

Interpret and calculate the expected value and standard deviation of the Wilcoxon rank sum test statistic under the null hypothesis.

Formulate null and alternative hypotheses for the Wilcoxon test based on the difference in medians.

Recognize the conditions under which to use nonparametric methods.

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Definitions:

Deflated

A state where an object has been emptied or reduced of air or gas, making it less inflated than before.

Split Rim

A type of wheel construction where the rim is split into two or more parts, allowing for easier tire changes.

Bead

Usually a steel wire coil that forms the anchor for tire plies or the rim attachment for a tire or pneumatic spring.

Unsprung Weight

The weight of a vehicle not supported by the suspension. Ideally, this weight is kept as low as possible because unsprung weight forces react through the suspension.