Kennedy Inc. has the following data for its operation in August:

What was the direct materials usage variance in August, rounded to the nearest dollar?

Multiple Choice

• $230 unfavorable.

• $460 unfavorable.

• $690 favorable.

• $690 unfavorable.

• $920 unfavorable.

An investor sells short 500 shares of ABC Corporation on June 1, at a time when the price per share is $120. The position is closed out 3 months later, August 31, when the price per share is $100. A dividend of $4 per share was paid July 31, one month before the short position is closed out.

Suppose that the investor must open a margin account at the time the short position is taken. The margin required is 50% of the value of the stock sold short. The investor also earn 1% per month, compounded monthly, on the margin account. Find the investor's 3-month rate of return on the investment.

answer: 29.63%

1. Give two reasons why we should globally transition to renewable energy?

2. Economists affirm that economic growth is not only feasible but also desirable and that the planet will not run out of natural resources if we put in place a proper price mechanism. Please give a precise example of how the price mechanism will work to avoid running out of a given resource.

3. Do you expect oil prices to reach the level of $80 to $100/barrel in the future? Please support your explanation with clear arguments.

4. Several countries are progressively shifting to Electric Vehicles (EVs). Can you please give reasonable explanation why this is happening?

Q1. Peter is producing table lamps in the perfectly competitive market desk lamp market.

a) Suppose the equilibrium price in the desk lamp market is $50. How many table lamps should Peter produce, and how much profit will he make? Please make use of TR, TC, MR and MC curves to illustrate.

b) In next week, the demand for desk lamps drops and the price drops to $30, should Peter shut down? Explain.

The Perfect Rose Company is a flower industry member that grows and sells roses all year round in a perfectly competitive market.

The firm charges a price of $100 per box. The firm’s total costs are C(Q) = 50 + 12Q + 2Q².

a. How much output should the firm produce in the short run?

____units


b. What price should the firm charge in the short run?

$ _____


c. What are the firm’s short-run profits?

$_____


d. What adjustments should be anticipated in the long run?

A) Entry will occur until economic profits shrink to zero.

B) No firms will enter or exit at these profits.

C) Exit will occur since these economic profits are too low.

Alienware and Foxconn are two multinational electronics company operating in a homogeneous computer hardware market. The engineering department at Alienware has been steadily working on developing a patented technology that has enabled the firm to reduce its marginal cost and emerge as a leader in the market.

The inverse demand function for the market is   P = 1200 - 6Q

Alienware's costs are TC = 60Q_A and Foxconn's costs are TC = 120Q_F.
The current output for Alienware is Q_A = 100 while Foxconn produces Q_F = 50. The current price is P = 300.

Ignoring antitrust possibilities, suppose Alienware makes an offer to Foxconn and they are in the process of negotiating a merger.

What is the potential price of the product after the merger?

On December 31, 2015, Berclair Inc. had 442 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Net income for the year ended December 31, 2016, was $1,050 million.

Also outstanding at December 31 were incentive stock options granted to executives. The options were exercisable for 30 million common shares at an exercise price of $56 per share. During 2016, the market price of the common shares averaged $70 per share.

Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2016.

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $27.70 per share. On March 1, a dividend of $3.30 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $22.00 per share. You paid 25 cents per share in commissions for each transaction. a. What is the proceeds from the short sale (net of commission)? b. What is the dividend payment? c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $22.00 per share? d. What is the net gain from your transaction?

A share of Amazon stock is currently selling for $1,405. You plan to purchase your first share in one year in honor of your 22nd birthday. You are concerned that the price will rise by then. To hedge this risk, you enter into a forward contract to buy one share of Amazon stock in one year. Assume that the risk-free rate is 3.5% (APR, semi-annual compounding). • Calculate the appropriate price at which you can contract to buy the asset in one year. Assume continous compounding. • Assume that eight months into the contract, interest rates increased by 75bp and the AMZN stock price is $1,400. Calculate your gain or loss from the forward contract. Assume continous compounding. • Suppose that at expiration, the price of the stock is $1,500. Calculate your gain or loss from the forward contract.