Following are the number of victories for the Blue Sox and the hotel occupancy rate for the past eight years. You have been asked to test three forecasting methods to see which method provides a better forecast for the Number of Blue Sox Wins.

For the following, you are to provide all forecasts to one decimal place (example, 93.2)

You are asked to forecast the Number of Blue Sox Wins for Year 9. Although you believe there might be a linear regression relationship, your boss has told you to only consider the following three forecasting methods:

• 3-period moving average
• 3-period weighted moving average given the weights of 0.7 for the most recent period and 0.2 for the next most recent period, and the remaining weight (s) consistent with this method as we have used in class, and
• exponential smoothing with α = 0.25 and the best forecast available for the Number of Blue Sox Wins is for Year 2 which is 66.0.

a) What is the forecast from each of these methods for Year 9?

b) Which forecasting method provides the better forecast for Year 9? Why? Your selection criteria must be based on one of the numerical evaluation methods we have used on the homework this term using the forecast results for Year 5 through Year 8.

QUESTION 2:

S.B.Consult Ltd, recognized as the leader in hospital supplies, has received an invitation to supply FBC, ECG, and dental machines to Justab Hospital in Kasoa. The contract will be for 10 years, and management is considering appraising the investment to enable them present their proposals for the contract. The following information was extracted from the recently published accounts of S.B. Consult Ltd.

The Treasury unit of S.B.Consult Ltd has estimated that it will require GH¢ 10 million to finance the new project. The total amount would be raised through 10% Irredeemable bonds at the current market price. The cost of Preference shares and Bonds will not change but equity shareholders will demand an increase of 20% on the current cost of equity.

S.B.Consult Ltd has a beta of 0.8, the market risk premium for the steel industry is 6.25%, and the Government of Ghana Bond rate is 20%. The current market price for Irredeemable Bonds of GH¢1,000 nominal value is GH¢850.

S.B. Consult Ltd’s dividend policy is to pay constant dividend and this policy will not change into the foreseeable future. The recent dividend paid was GH¢20 per share. S.B. Consult Ltd is a Free Zones Company and therefore pays tax at a rate of 8%.

Required:

i) Calculate the current market capitalization of S.B. Consult Ltd.                    

(Hint: ?=??+ ? (??−??))

QUESTION 3:

Boateng Plaza Ltd, a hotel leisure company, is currently considering taking over a smaller private limited company, Badin Ltd. The board of Boateng Plaza is in the process of making a bid for Badin Ltd but first needs to place a value on the company.

Boateng Plaza has gathered the following data:

The company’s earnings yield is 12%.

Required:

i) As a Finance Manager, calculate the value of the company based on the present value of expected earnings.                                                                                                            

ii) Explain THREE problems associated with using P/E method for valuing firms.           

It's a complete question, Sir

1A)

The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's:

1B)

The average fixed cost of a firm equal:

A monopolist charges a price of $15 per unit. A the point of intersection of the marginal revenue and marginal cost curves, the output was 10 units and the marginal cost was $7. Average total cost for 10 units of output was $7. What is this monopolist’s profit?

Hint: Profit = Total Revenue - Total Cost

Total Revenue = Price x Quantity

Total Cost = Average Total Cost x Quantity

A student wonders if tall women tend to date taller men than do short women. She measures herself, her dormitory roommate, and the women in the adjoining rooms; then she measures the next man each woman dates. The data (heights in inches) are listed below. Women (x) 67 65 69 63 68 67 Men (y) 71 67 69 67 68 66

(a) Make a scatterplot of these data. (Do this on paper. Your instructor may ask you to turn this in.) Based on the scatterplot, do you expect the correlation to be positive or negative? Near ± 1 or not?

The correlation should be positive. It should be near 1.

The correlation should be negative. It should be near -1.

The correlation should be positive. It should not be near 1.

The correlation should be negative. It should not be near -1.

(b) Find the correlation r between the heights of the men and women. (Round your answer to three decimal places.)

(c) How would r change if all the men were 6 inches shorter than the heights given in the table? Does the correlation tell us whether women tend to date men taller than themselves?

r will not change. This correlation does imply that women tend to date men taller than themselves

. r will increase. This correlation does not imply that women tend to date men taller than themselves.

r will not change. This correlation does not imply that women tend to date men taller than themselves.

r will decrease. This correlation does imply that women tend to date men taller than themselves.

(d) If heights were measured in centimeters rather than inches, how would the correlation change? (There are 2.54 centimeters in an inch.)

r will decrease by 2.54. r will be divided by 2.54.

r will increase by 2.54.

r will not change.

r will be multiplied by 2.54.

(e) If every woman dated a man exactly 3 inches taller than herself, what would be the correlation between male and female heights?

r will be equal to -1.

r will be equal to 1.

r will be the same as the value in (b).

r will be equal to 0.

For each of the scenarios below, choose the strategy that you believe should be pursued to achieve the best results, and provide a brief explanation of why you believe this is the best strategy.

5 Generic Strategies

Low-Cost Provider Strategy

Broad Differentiation Strategy

Focused Low-Cost Strategy

Focused Differentiation Strategy

Best-Cost Provider Strategy

Scenarios:

1. A new waterfront development project is beginning in a medium-size city. This project will include moderate to higher-end shopping, restaurants, and hotels. Some of these businesses include: Pottery Barn, Ann Taylor,an Apple Store, Sasha’s Dress Boutique, Apostrophe, Bose, Calvin Klein, Cheesecake Factory, Capital Grille,Maggiano’s, the Marriott, and the Westin. The spaces will include a mixture of national chains, and local businesses. The project and the city have been highlighted in national papers for the expected success of the project and renewed attraction to the city. The Sully Hospitality group is determining if they want to open a boutique hotel in this area. What strategy should Sully adopt to develop the type of boutique hotel would best- fit this project? Provide a brief explanation.

2. A new shopping center is being developed – the main anchors are Wal-Mart and Home Depot. The other parcels will include smaller establishments of fast-food and other convenience category businesses.McDonald’s is interested in this project but has to determine how they would approach this location. The options are:

Put a McDonald’s Express inside the Wal-Mart

Purchase an out-parcel at the front of the project with high traffic volume and build a traditional

McDonald’s

Purchase an out-parcel at the front of the project with high traffic volume and build a McCafe

Which generic strategy should be McDonald’s use to guide this decision? Based on the generic strategy that you believe is most appropriate for this scenario, which option should McDonald’s choose? Provide a brief explanation.

3. The airline industry has seen various players attempt all of the generic strategies. Given the current state of the airline industry and the main surviving airlines, if a company wanted to get into this industry right now, which strategy would promote the best chances for success? Provide a brief explanation.

4. The top five selling brands of tablets in the world are: 5. Acer, 4. Dell, 3. Sony Vaio, 2. Lenovo, and 1. Apple. A new start-up company wants to break into the tablet market; what generic strategy should they adopt? Provide a brief explanation.

Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:

The beginning work in process inventory was 80% complete with respect to materials and 65% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 50% complete with respect to labor and overhead.

Required:

Assume that the company uses the FIFO method in its process costing system.

1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.

2. Compute the first department's cost per equivalent unit for materials, labor, overhead, and in total for the month. (Round your answers to 2 decimal places.)

.

Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations:

Required:

Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

High-low method

Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

1. Determine the variable cost per unit and the total fixed cost. Round your answer for the variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar.

   Variable cost:	$ per unit
   Total fixed cost:	$

2. Based on part (a), estimate the total cost for 87,000 units of production. Round your answer to the nearest dollar.

   Total cost for 87,000 units:

   $

Problem 1-24 Different Cost Classifications for Different Purposes [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5]

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:

Required:

1. With respect to cost classifications for preparing financial statements:

a. What is the total product cost?

b. What is the total period cost?

2. With respect to cost classifications for assigning costs to cost objects:

a. What is total direct manufacturing cost?

b. What is the total indirect manufacturing cost?

3. With respect to cost classifications for manufacturers:

a. What is the total manufacturing cost?

b. What is the total nonmanufacturing cost?

c. What is the total conversion cost and prime cost?

4. With respect to cost classifications for predicting cost behavior:

a. What is the total variable manufacturing cost?

b. What is the total fixed cost for the company as a whole?

c. What is the variable cost per unit produced and sold?

5. With respect to cost classifications for decision making:

a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit?