Formulate the outline of a precision pricing policy for a four-star hotel designed to accommodate business guests as well as tourists from all over the world. Explain your answer

(Weighted average cost of capital​)

ABBC Inc. operates a very successful chain of yogurt and coffee shops spread across the southwestern part of the United States and needs to raise funds for its planned expansion into the Northwest. The​ firm's balance sheet at the close of 2015 appeared as​ follows:

.At​ present, the​ firm's common stock is selling for a price equal to 3 times its book​ value, and the​ firm's investors require a return of

18 percent. The​ firm's bonds command a yield to maturity of 7 ​percent, and the firm faces a tax rate of 37 percent. At the end of the previous​ year, ABBC's bonds were trading near their par value.

a. What does​ ABBC's capital structure look​ like?

b. What is​ ABBC's weighted average cost of​ capital?

c. If​ ABBC's stock price were to rise such that it sold at 3.5 times its book value and the cost of equity fell to

15 ​percent, what would the​ firm's weighted average cost of capital be​ (assuming the cost of debt and tax rate do not​ change)?

I NEED ANSWERS TO THESE QUESTIONS:

a. What is the proportion of debt financing in​ ABBC's capital​ structure? ______​% ​(Round to two decimal​ places.)

What is the proportion of equity financing in​ ABBC's capital​ structure? ​______% ​(Round to two decimal​ places.)

b. What is​ ABBC's weighted average cost of​ capital? ______​% ​(Round to two decimal​ places.)

c. If​ ABBC's stock price were to rise such that it sold at 3.5 times its book value and the cost of equity fell to 15

​percent, what would the​ firm's weighted average cost of capital be​ (assuming the cost of debt and tax rate do not​ change)?

_____​% ​(Round to two decimal​ places.)

Suppose that Disney is considering one more Toy Story movie. The company is not confident in box office sales, but they do believe that the file will create merchandising opportunities (DVDs, toys, clothes,..etc). Their early analysis believes the move will have an NPV of -$43.00 million if you only look at ticket sales in the theater. However, they also believe that the movie will create sales of $80.00 million per year in merchandise. The merchandise sales will decline each year by 21.00% in perpetuity. Let’s assume that after-tax operating margin on these sales is 14.00%, and that Disney has a cost of capital at 8.00%. What is the cash flow created by the merchandise side effect in the first year? (answer in terms of millions, so 1,000,000 would be 1.00)

Let’s value this as a perpetuity. The merchandise sales will continue indefinitely, BUT the sales will decrease each year. What is the net NPV for creating the movie? (answer in terms of millions, so 1,000,000 would be 1.00)

Suppose that Disney is considering one more Toy Story movie. The company is not confident in box office sales, but they do believe that the file will create merchandising opportunities (DVDs, toys, clothes,..etc). Their early analysis believes the move will have an NPV of -$39.00 million if you only look at ticket sales in the theater. However, they also believe that the movie will create sales of $82.00 million per year in merchandise. The merchandise sales will decline each year by 26.00% in perpetuity. Let’s assume that after-tax operating margin on these sales is 11.00%, and that Disney has a cost of capital at 10.00%.

A) What is the cash flow created by the merchandise side effect in the first year? (answer in terms of millions, so 1,000,000 would be 1.00)

B) Let’s value this as a perpetuity. The merchandise sales will continue indefinitely, BUT the sales will decrease each year. What is the net NPV for creating the movie? (answer in terms of millions, so 1,000,000 would be 1.00)

The New Hotel Of Marseille has 2 different meeting rooms named Honorine and Zoe. In Honorine, there is a meeting for a pharmaceutical company while in Zoe there is a meeting for an insurance company. The reception team was well informed about the pharmaceutical meeting but not the insurance’s, every time a person asks the reception for the meeting location, they were immediately sent to Honorine. Two of the participants came back to the front desk and they were very upset about being sent to the wrong place, when asking about why they were not sent to the correct meeting, the receptionist politely replied and informed them that based on the information he had, there is only one meeting at the hotel today, but the guests insisted that their company organized a meeting at the hotel, so the reception showed his understanding and apologized about the misunderstanding and immediately called the sales department who confirmed that there are two different meetings.

Questions: Question 1: What is the reason behind this situation? Why? (35 pts.)

Question 2: Who is responsible for avoiding such misunderstandings in the future? How? (35 pts.)

Question 3: How would you evaluate the service delivered by the front office team? (30 pts.)

The tube length in a certain compound microscope is 25 cm. The focal length of the objective lens is 2.1 cm. The clearest image is formed when an object of height 1 mm is placed at a distance of 2.3 cm from the objective lens. Determine: (i) The position of the intermediate image, (ii) the focal length of the eye piece, that will place the final image at the near-point, (iii) the total magnification of the microscope and the height of the image, (iv) sketch to scale a ray diagram that verify your findings.

Two people are carrying a uniform 3 m long steel beam that has a total mass of 32.1 kg. One person is supporting it at the far left end with an upward force of 120 N, while the second one is supporting it somewhere near the right end with an unknown force.

How much force is required from the second person in order to balance the beam? H

ow far from the right end must the second person lift in order to balance the beam?

In a high-energy collision between a cosmic-ray particle and a particle near the top of Earth's atmosphere, 104 km above sea level, a pion is created.The pion has a total energy E of 1.92 × 10⁵ MeV and is traveling vertically downward. In the pion's rest frame, the pion decays 35.0 ns after its creation. At what altitude above sea level, as measured from Earth's reference frame, does the decay occur? The rest energy of a pion is 139.6 MeV.

In forming a chelate with a metal ion, a mixture of free EDTA (abbreviated Y4−) and metal chelate (abbreviated MYn−4) can buffer the free metal ion concentration at values near the dissociation constant of the metal chelate, just as a weak acid and a salt can buffer the hydrogen ion concentration at values near the acid dissociation constant.

The equilibrium

Mn++Y4−−⇀↽−MYn−4

is governed by the equation

K′f=αY4−*Kf=[MYn−4]/[Mn+][EDTA]

here Kf is the association constant of the metal and Y4−, αY4− is the fraction of EDTA in the form Y4−, and [EDTA] is the total concentration of free (unbound) EDTA. K′f is the conditional formation constant.

How many grams of Na2EDTA⋅2H2O (FM 372.23 g/mol) should be added to 1.55 g of Sr(NO3)2⋅4H2O (FM 283.69 g/mol) in a 500. mL volumetric flask to give a buffer with pSr2+=8.00 at pH 10.00? logKf for Sr−EDTA is 8.72 and αY4− at pH 10.00 is 0.30.