Questions
How an investor can make profit from an anticipation that stock prices will decline in near...

How an investor can make profit from an anticipation that stock prices will decline in near future. Explain with an example.

In: Finance

What lessons can we take from the failed Embargo Act as the threat of a trade...

What lessons can we take from the failed Embargo Act as the threat of a trade war looms near?

In: Economics

What are the economic similarities between the problem of the destruction of the tropical rain forest,...

What are the economic similarities between the problem of the destruction of the tropical rain forest, the near extinction of bison, and the problem of overfishing?

In: Economics

Please answer using Excel. RISKY BOND PROBLEM Face value of bond 100 Coupon rate 22% Non-default...

Please answer using Excel.

RISKY BOND PROBLEM
Face value of bond 100
Coupon rate 22%
Non-default probability 80%
Default probability 20%
Payoff in default (% of face value) 40%
Market price today 95
Expected payoff in one year  
Expected return, rD  
Part b
Percentage equity 40%
Percentage debt 60%
Corporate tax rate, TC 35%
Cost of equity, rE 25%
WACC  

In: Finance

Prem Narayan, a graduate student in engineering, to market a radical new speaker he had designed...

Prem Narayan, a graduate student in engineering, to market a radical new speaker he had designed for automobile sound systems, founded Acoustic Concepts, Inc. Prem established the company’s headquarters into rented quarters in a nearby industrial park. He hired a receptionist, an accountant, a sales manager, and a small sales staff to sell the speakers to retail stores. Prem asked his accountant, Bob Luchinni, to prepare several cost-volume-profit analyses, using the information shown below.

Sales price for one speaker set................................................... $250 Variable manufacturing cost for each speaker set (direct
materials) ................................................................................... $150 Fixed expenses per month (rent, salaries of receptionist, sales

people, accountant, and Prem)................................................... $35,000 Number of speaker sets sold per month..................................... 400

Based on the above information, how many stereo speaker sets will need to be sold for Acoustic Concepts, Inc., to break even for one month?

Based on the above information, how many stereo speaker sets will need to be sold for Acoustic Concepts, Inc., to earn a $1,000 profit for one month?

What will be the net income or net loss for one month if 400 speaker sets are sold? How about if 425 speakers are sold?

The sales manager feels that a $10,000 increase in monthly advertising will increase monthly sales by $30,000. Would you recommend increasing the advertising budget?

Prem and other management personnel are considering the use of higher-quality components, which would increase variable costs by $10 per speaker. However, the sales manager predicts that the higher overall quality would increase sales to 480 speaker sets per month. Should the higher quality components be used?

The sales manager believes that by reducing the selling price of speakers by $20, and also by increasing the advertising budget by $15,000 per month, that sales will increase to 600 speaker sets per month. Should the changes be made?

The sales manager would like to place the sales staff on a commission basis of $15 per speaker sold, rather than on flat salaries that now total $6,000 per month. The sales manager is confident that the change will increase monthly sales to 460 speaker sets per month. Should the change be made?

Suppose Acoustic Concepts has an opportunity to make a bulk sale of 150 speakers to a wholesaler, if an acceptable price can be worked out. The sale would not disturb the company’s regular sales, nor would if affect fixed operating costs per month. What price should be quoted to the wholesaler if Acoustic Concepts wants to increase its monthly profits by $3,000?

 C.M.=contribution margin, S.P.=sales price, V.C.=variable cost, F.C.=fixed cost

 C.M. per unit = S.P. per unit – V.C. per unit

 The break even point is the point at which the total contribution margin equals fixed costs.

 Break even units sold = F.C. / C.M. Per unit

 Break even sales dollars = F.C. / C.M. Percentage

 C.M. Percentage = C.M. per unit / S.P. per unit, or C.M. (total) / Sales (total)

In: Accounting

What are the benefits for a hospital to organize itself as a nonprofit? Do nonprofits make...

What are the benefits for a hospital to organize itself as a nonprofit? Do nonprofits make less money than for-profit hospitals? Do some quick research on the internet and see which major hospitals near you (or near a city you have lived in within the U.S.) are nonprofits. Can you find information on CEO compensation? Do they seem to make less than CEO's of for-profit hospitals? Does the hospital (or hospitals) you chose seem to be fulfilling its (or their) obligations to benefit the community? How do they do so?

In: Economics

A magnifying glass is a single convex lens with a focal length of f = +9.50...

A magnifying glass is a single convex lens with a focal length of f = +9.50 cm. (Assume the person using the magnifying glass has a near point of 25 cm and the magnifying glass is directly in front of the person's eyes.)

(a) What is the angular magnification when this lens forms a (virtual) image at ???


How far from the object should the lens be held?


(b) What is the angular magnification when this lens forms a (virtual) image at the person's near point?


How far from the object should the lens be held in this case?

In: Physics

Suppose that you decided to send a spacecraft to Neptune using a Hohmann transfer. The craft...

Suppose that you decided to send a spacecraft to Neptune using a Hohmann transfer. The craft starts in a circular orbit close to the Earth (1 AU) and is to end up in a circular orbit near   Neptune (about 30 AU).   (a) How long would the transfer take?   (b) How could you shorten this time, without increasing the amount of fuel required?   (c) What change in velocity is needed to enter the transfer orbit?   (d)   What is the change in velocity needed to enter the circular orbit near Neptune?

In: Physics

29. The results of a research study indicate that children who spend more time on social...

29. The results of a research study indicate that children who spend more time on social media tend to have lower self-esteem. The correlation between these two variables (i.e.time spent on social media and self-esteem) is an example of ________________.

  • A. correlation near zero.

  • B. positive correlation

  • C. negative correlation

31. The strongest possible, positive Person’s correlation between two variables is _______.

  • A. r = 10.00

  • B. r = 1.00

  • C. r = 0.00

  • D. r = -1.00

  • E. r = -10.00

  • F. Not enough information to answer the question

32.If a researcher measured a person’s shoe size and self-reported anxiety, what kind of correlation is most likely to be revealed between these two variables (i.e., what correlation would you expect to find between persons’ shoe size and anxiety)?

  • A. A correlation near 1.00.

  • B. A moderate negative correlation.

  • C. A correlation near 0.00.

  • D. A moderate positive correlation.

  • E. A correlation near -1.00.

35. Suppose a researcher found that there is a significant correlation between intensity of physical exercise and alcohol drinking, r(100) = -0.40. Based on this finding, what percent (or proportion) of variability in alcohol drinking is accounted for by the intensity of physical exercise?

  • A. 16% (or 0.16)

  • B. 60% (or 0.60)

  • C. 4% (or 0.04)

  • D. -40% (or - 0.40)

  • E. 40% (or 0.40)

  • F. 84% (or 0.84)

In: Statistics and Probability

Acorn Construction (calendar-year end C-corporation) has had rapid expansion during the last half of the current...

Acorn Construction (calendar-year end C-corporation) has had rapid expansion during the last half of the current year due to the housing market’s recovery. The company has $5,000,000 of taxable income before the cost recovery deduction and would like to maximize its cost recovery deduction for the current year. Acorn provided the following information: Assets Placed in Service Basis New Equipment and Tools August 20 $1,750,000 Used Light Duty Trucks January 17 1,500,000 Used Machinery February 6 525,000 Total $3,775,000 The used assets had been contributed to the business by its owner in a nontaxable transaction. What is Acorn’s maximum cost recovery expense in the current year?

In: Finance