PYTHON:

Write a recursive function named linear_search that searches a list to find a given element. If the element is in the list, the function returns the index of the first instance of the element, otherwise it returns -1000.

Sample Output

>> linear_search(72, [10, 32, 83, 2, 72, 100, 32])

4

>> linear_search(32, [10, 32, 83, 2, 72, 100, 32])

1

>> linear_search(0, [10, 32, 83, 2, 72, 100, 32])

-1000

>> linear_search('a', ['c', 'a', 'l', 'i', 'f', 'o', 'r', 'n', 'i', 'a'])

1

Use this template:

=============================================================================

def linear_search(ele, array):
"""searches the given list for the given element
INPUT:
* ele - the element
* array - the list
OUTPUT: the index of the first instance of the element in the list, or -1000 if it is not in the list.
"""

pass

3. The spending multiplier effect

Consider a hypothetical economy. Households spend $0.75 of each additional dollar they earn and save the remaining $0.25. The spending multiplier for this economy is.

Suppose investment in this economy increases by $100 billion. The increase in investment will lead to an increase in income, generating an increase in consumption that increases income yet again, and so on.

Fill in the following table to show the impact of the change in investment on the first two rounds of consumption spending and, eventually, on total spending and income.

Now consider the impacts of a change in taxes. The tax multiplier in this question will be____, thus, if taxes increase by $100 billion then spending will change by $ _____ billion.

Assume that the export price of a Toyota Corolla from Osaka, Japan, is ¥2,100,000. The exchange rate is ¥87.59 /$.

The forecast rate of inflation in the United States is 2.1 % per year and in Japan it is 0.0 % per year. Use this data to answer the following questions on exchange rate pass-through.

a. What was the export price for the Corolla at the beginning of the year expressed in U.S. dollars?

b. Assuming purchasing power parity holds, what should be the exchange rate at the end of the year?

c. Assuming 100% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

d. Assuming 75% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

a. What was the export price for the Corolla at the beginning of the year expressed in U.S. dollars?

The export price for the Corolla at the beginning of the year expressed in U.S. dollars is

$__.

(Round to the nearest cent.)

b. Assuming purchasing power parity holds, what should be the exchange rate at the end of the year?

Assuming purchasing power parity holds, the exchange rate be at the end of the year should be

yen¥__ /$.

(Round to two decimal places.)

c. Assuming 100% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

Assuming 100% exchange rate pass-through, the dollar price of a Corolla at the end of the year will be

$__.

(Round to the nearest cent.)

d. Assuming 75% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

Assuming 75% exchange rate pass-through, the dollar price of a Corolla at the end of the year will be

$__.

(Round to the nearest cent.)

we consider an investor with $5,000 to invest. Assume the spot price in 12 months is $100. Calculate the amount the investor will make spending the $5,000 to buy shares of stock, spending the $5,000 to buy puts with a strike of $100, or spending the $5,000 to buy calls with a strike of $100? Based on this analysis, Why do investors use options? what is the advantage of using options?

You are provided with the following information for ABC

Book value structure

• Debenture ($100 per debenture)        $8 000 000
• Preference shares ($100 per share)     $2 000 000
• Ordinery shares ($10 per share)             $ 10 000 000

Recent market prices of all these securities are as follows

• Debentures                          $110 per Debenture
• Preference Shares               $120 per share
• Ordinery shares                    $22 per share

External financial opportunities are:

• $100 per debenture redeemable at par,10 year maturity,13% coupon rate, 4% floatation cost and sale price $100
• $100 per preference share redeemable at par,10 year maturity,14% dividend rate,5% floatation cost and sale price $100
• Ordinery shares: $2 per share floatation costs and sales price $22

Dividends expected on equity shares at the end of year is $2 per share, anticipated growth rate in dividends is 7%,ABC Ltd pats all its earnings in the form of dividends. Corporate tax rate is 30%

Calculate

1. Cost of equity capital (3)
2. Cost of preference shares (3)
3. After tax cost of debt (4)
4. Weighted Average Cost of Capital based on book values (5)
5. Weighted Average Cost of Capital bases on market values (5)

Consider a market for used cars. There are 100 sellers and 100 buyers. The sellers know the qualities of their cars, but the buyers only know that the quality θ of each used card is uniformly distributed over interval [0, 1]. The seller’s value of a car with quality θ is θ. (Thus, market supply is S(p) = 100p for 0 ≤ p ≤ 1 and S(p) = 100 for p > 1.) Each of 50 buyers values a car with expected quality θ at 2θ, but each of the other 50 buyers values such a car at 1.5θ. Assume (i) buyers and sellers are price-taking and (ii) buyers buy and sellers sell when they are indifferent.

a) Given price p ≥ 0, determine the expected quality of the cars supplied at price p.

b) Find market demand.

c) Find a competitive equilibrium. How many cars are traded in equilibrium? What is the expected quality?

a. Suppose you write 50 of the Feb 100 put contracts. What is your net gain or loss if Hendreeks is selling for $98.00 at expiration? For $114?

$98 at expiration

$114 at expiration

The company provides some details for the period 2020 for preparing necessary budgets:

(a) Sales Details

The Company estimates that it can get maximum profits if it charges $ 200 (selling price) for one of its products. The marketing manager of the company had indicated that at $ 200 selling price, the company would be able to sell 1,000 units in the first quarter of 2020. The company also expects that sales would go up by 100 units over previous quarter sales (like 1000, 1100 and so on….) Selling price is expected to be same throughout the year.

(b) Inventory details

Alwyn Industries maintains at the end of each quarter an inventory of 10% of the next quarter’s sales. This allows the company to better meet its customers’ needs in case the customers experience a sudden surge in demand. The opening inventory for first quarter 2020 has been estimated to be 200 units

(c) Divisional Performance

Alwyn Industries has to divisions (A & B) working within the company. The CEO of the company is wondering whether divisional performance evaluation will be fruitful for them since the company has two divisions operating with certain targets. The head of those divisions report the following results for the quarter ending 2019, which is given below:

Question : Evaluate the divisional performance (A & B) using ROI for the quarter ending 2019 stating which product is better and why

There is an insurance pool of 1000 people. All are covered via community rating. The distribution of expected health care costs per person is shown in the table below.

A. Year 1. Customers only buy insurance if their expected health care claims are higher than the premium. In the first year, 500 people purchase insurance. What is the highest premium the insurance company could charge to get 500 people to buy insurance? Explain.

B. Year 2. Expected health care claims are accurate. The insurer wants to cover costs, so they set their year 2 premium equal to the average claim for people who were covered in the prior year. What is the new premium? Explain.

Sales Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:

Required:

1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.

2. What if FlashKick added a third line—tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $42 each in January and February, and $45 each in March? Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.