As a firm takes on more debt, its probability of bankruptcy_______. (Increases or Decreases) Other factors held constant, a firm whose earnings are relatively volatile faces a________(Greater or Lower) chance of bankruptcy. Therefore, when other factors are held constant, a firm whose earnings are relatively volatile should use_______(Less or More) debt than a more stable firm. When bankruptcy costs become more important, they __________(Increase or Reduce) the tax benefits of debt.

Green Goose Automation Company currently has no debt in its capital structure, but it is considering using some debt and reducing its outstanding equity. The firm’s unlevered beta is 1.25, and its cost of equity is 11.75%. Because the firm has no debt in its capital structure, its weighted average cost of capital (WACC) also equals 11.75%. The risk-free rate of interest (rRFrRF) is 3%, and the market risk premium (RP) is 7%. Green Goose’s marginal tax rate is 35%.

Green Goose is examining how different levels of debt will affect its costs of debt and equity, as well as its WACC. The firm has collected the financial information that follows to analyze its weighted average cost of capital (WACC). Complete the following table.

7. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $50,000 per year Round trip airfare from Los Angeles (LAX) to Las Vegas (LAS) $100 per round trip Room rate at the Lucky Hotel and Casino, which is near the Big Winner $250 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. 0 50 100 150 200 250 300 350 400 450 500 500 450 400 350 300 250 200 150 100 50 0 PRICE (Dollars per room) QUANTITY (Hotel rooms) Demand Graph Input Tool Market for Big Winner's Hotel Rooms Price (Dollars per room) 200 Quantity Demanded (Hotel rooms per night) 300 Demand Factors Average Income (Thousands of dollars) 50 Airfare from LAX to LAS (Dollars per round trip) 100 Room Rate at Lucky (Dollars per night) 250 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Big Winner is charging $200 per room per night. If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Big Winner from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Big Winner are . If the price of a room at the Lucky were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Big Winner from rooms per night to rooms per night. Because the cross-price elasticity of demand is , hotel rooms at the Big Winner and hotel rooms at the Lucky are . Big Winner is debating decreasing the price of its rooms to $175 per night. Under the initial demand conditions, you can see that this would cause its total revenue to . Decreasing the price will always have this effect on revenue when Big Winner is operating on the portion of its demand curve.

050100150200250300350400450500500450400350300250200150100500PRICE (Dollars per room)QUANTITY (Hotel rooms)Demand  

Graph Input Tool

**ASAP**

Test the claim that the mean GPA of night students is significantly different than 2.8 at the 0.1 significance level.

The null and alternative hypothesis would be:

H0:p=0.7H0:p=0.7
H1:p<0.7H1:p<0.7

H0:p=0.7H0:p=0.7
H1:p>0.7H1:p>0.7

H0:μ=2.8H0:μ=2.8
H1:μ>2.8H1:μ>2.8

H0:μ=2.8H0:μ=2.8
H1:μ<2.8H1:μ<2.8

H0:p=0.7H0:p=0.7
H1:p≠0.7H1:p≠0.7

H0:μ=2.8H0:μ=2.8
H1:μ≠2.8H1:μ≠2.8

The test is:

left-tailed

two-tailed

right-tailed

Based on a sample of 35 people, the sample mean GPA was 2.85 with a standard deviation of 0.04

The p-value is:  (to 2 decimals)

Based on this we:

• Reject the null hypothesis
• Fail to reject the null hypothesis

Test the claim that the mean GPA of night students is larger than 2.8 at the 0.10 significance level.

The null and alternative hypothesis would be:

H0:μ=2.8H0:μ=2.8
H1:μ≠2.8H1:μ≠2.8

H0:p=0.7H0:p=0.7
H1:p≠0.7H1:p≠0.7

H0:μ≥2.8H0:μ≥2.8
H1:μ<2.8H1:μ<2.8

H0:p≤0.7H0:p≤0.7
H1:p>0.7H1:p>0.7

H0:p≥0.7H0:p≥0.7
H1:p<0.7H1:p<0.7

H0:μ≤2.8H0:μ≤2.8
H1:μ>2.8H1:μ>2.8

The test is:

right-tailed

two-tailed

left-tailed

Based on a sample of 40 people, the sample mean GPA was 2.81 with a standard deviation of 0.04

The test statistic is:  (to 2 decimals)

The p-value is:  (to 2 decimals)

Based on this we:

• Fail to reject the null hypothesis
• Reject the null hypothesis

#33-36, use the following information. Test the claim that the mean female reaction time to a highway signal is less than 0.7 s. When 18 females are randomly selected and tested, their mean is 0.668 s. Assume that σ = 0.1 s, and use a 5% level of significance. 33. Give the null hypothesis in symbolic form. (a) H0 :µ < 0.7 (b) H0 :µ > 0.7 (c) H0 :µ ≤ 0.7 (d) H0 :µ ≥ 0.7 (e) H0 : p ≥ 0.7 34. Determine the appropriate test statistic. (a) z = 1.528 (b) z = −1.645 (c) z = −1.36 (d) t = 0.971 (e) t = −1.74 35. Find the appropriate critical value(s). (a) z = −1.96 (b) z = 1.645 (c) z = −1.645 (d) t = 1.74 (e) t = −1.74 36. Make the appropriate decision. (a) Reject H0 (b) Fail to reject H0

Does the STR report show net income (profitability) for each hotel in a comp set?

The STR report is the primary reporting tool that helps determine performance for a hotel in management contracts?

How is the concept of resort hotel different from other types of hotels? (15 pts.) From a manager’s perspective, how is managing a resort hotel different from runningother properties?

1. What are the criteria used to select the renovation projects?

2. What would be the indicators that a hotel need to be renovated ? Please make reference to the stages of the hotel life cycle in the explanation.

An amusement park has estimated the following demand equation for the average park guest

Q=16-2P

Where Q represents the number of rides per guest and P the price per ride. The total cost of providing rides to a guest is

TC=2+0.5Q

If a one-price policy is used, how much should it charge per ride if the park wishes to maximize its profit?

What is the park's profit for each guest?

If a two-part tariff policy is used, what admission fee should the park charge to maximize its profit?

What is the park's profit for each guest?

(please show work as I am confused. Thanks!!)

Write a program that calculates the occupancy rate for each floor of a hotel. (Use a sentinel value and please point out the sentinel in bold.) The program should start by asking for the number of floors in the hotel. A loop should then iterate once for each floor. During each iteration, the loop should ask the user for the number of rooms on the floor and the number of them that are occupied. After all the iterations, the program should display the number of rooms the hotel has, the number of them that are occupied, the number that are vacant, and the occupancy rate for the hotel. Input Validation: Do not accept a value less than 1 for the number of floors. Do not accept a number less than 10 for the number of rooms on a floor.