The demand for cabbage is given by QD = 2,000 – 300P, and the supply is given by QS = -100 + 100P.

a. Graph the supply and demand curves and show the equilibrium price and quantity. On the same graph show the effect of a $2.00 per-unit sales tax on the market equilibrium and also the tax burden for consumers and producers.

b. Calculate the consumers’ tax burden.

c. Calculate the producers’ tax burden.
Hint: Solve the equilibrium condition with and without the tax.

Tom bought 100 shares of Apple stock at $200 each sixteen months ago, and today Apple stock price is $220. Apple just paid a dividend of $0.75 per share. Tom faces an ordinary income tax rate of 35% and capital gain/qualified dividend tax rate of 18.8%.




How much tax does Tom owe to the IRS on this dividend income?

A $100 par value 20-year callable bond paying 5.5% coupons annually has a call protection period of 10 years. The bond is redeemable:

a.) at the end of the 11th to the 15th year, at 104%

b.) at the end of the 16th to the 20th year, at par.

Find the price of the bond if the yield rate of the bond is not less than 5.3%.

Please show all work by hand, without using a finance calculator or Excel. Thank you.

COST OF PREFERRED STOCK

15. A preferred stock paying a 7.5% dividend on par value ($100 Par) can be sold to net $65 per share. Tax rate is 34%. What is the cost of preferred stock to the firm?

16. Compute the cost of internal equity (or retained earnings) when the current market price of the common stock is $32. The expected dividend this forthcoming year is $1.75 increasing thereafter at a 6.5% annual rate.    

You purchased 100 shares of Express Scripts common stock on margin at $70.38 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $71.75. If the broker’s call loan rate is 2.00%, what is your return on equity?

Can I please get a step by step breakdown so that I can better understand the process involved? Thank you.

• Calculate the PED for a particular style of Tom's shoes if there is a price decrease from $100 to $50 and the quantity demanded increases from 2,500 to 10,000 pairs. (Create/ upload a diagram to help clarify your answer).
• Is this product elastic or inelastic? With references to the relevant determinants of PED, does this answer support what we've learned about elasticity and what we might expect for a pair of Tom's shoes? Briefly explain your answer.

If the price of the item is $10.00 per unit and the employees cost $100 each, how many employees should the firm hire to maximize their profit?

• Two employees

• Three employees

• Four employees

• One employee

The following information relates to the Novak Company.

Use the dollar-value LIFO method to compute the ending inventory for Novak Company for 2013 through 2017.

3) You have the potential option to write a put contract with a strike price of $35.00 with a expiration day that is in 6 months. This particular contract is for 100 SH's for the put option. You receive $2.75 per share for writing the put contract.

A) What is the maximum gain/profits($) from potentially writing the put option contract?

B) What is your maximum loss potential loss ($) resulting from writing this contract?

A company uses 1,000 electric drills per year in its production process. The ordering cost is $100 per order, and the carrying cost is assumed to be 40% of the unit cost. In orders of less than 120, drills cost $78 per unit; for orders of 120 or more, the price drops to $50 per unit.

Find the best ordering quantity for this product

Please show excel formulas and solver. Thank you.