The Following Table Shows Closing Share Prices (On the First

question 14

Essay

The following table shows closing share prices (on the first trading day of August,
2007) for a small sample of companies. $$\begin{array} { | l | c | } \hline \text { COMPANY } & \text { CLOSING SHARE PRICE - 08/07 } \\\hline \text { 3M Dental Products } & 86.95 \\\hline \text { Tyco Electronics Power Systems } & 47.45 \\\hline \text { Kyocera America Inc. } & 94.10 \\\hline \text { Pfizer Inc. } & 22.39 \\\hline \text { Xerox Company } & 17.56 \\\hline \text { Northrop Grumman Corporation } & 75.81 \\\hline \text { Lockheed Martin Maritime Systems } & 100.17 \\\hline \text { Sony DADC } & 51.91 \\\hline \text { Matsushita Electronic Components } & 17.91 \\\hline \text { Foster Wheeler Environmental Corp. } & 55.67 \\\hline\end{array}$$
a. Calculate the mean.
b. Calculate the standard deviation
c. Standardize the share price for Matsushita Electronic Components (find the z score).
Interpret its meaning.

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Definitions:

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.

Cash Equivalents

Assets readily convertible to a known cash amount within a short period, typically 90 days.

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, obtaining loans, or issuing and selling equity securities.

Interest Expense

The financial charge an organization incurs over time for borrowing funds.