Assume that you have a firm that owns land that is currently valued at $100 million and that the firm has $80 million of zero-coupon debt outstanding. The debt will mature in 1 year. In 1 year, the value of the land will either be $200 million or $50 million. The probability of the value of land increasing is 36.67%. The risk-free rate is 5%. The firm has 2 million shares outstanding. What is the price of 1 share for this firm?

Barbara purchased 100 shares of IBZ at 35 using a 60% initial margin. Due to unexpected news the stock price drops the next day to 25 and Barbara receives a margin call.
How much money does Barbara need to put on her account, if the broker requires that she restores the % margin to the initial 60% level?
Provide your answer rounded up to the next dollar. Show all calculations with formulas.

The following information relates to the Sarasota Company.

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

1. Suppose that your company makes 100 doorbells at a cost of $600 per month. They can increase production to 125 doorbells at a cost of $875 per month.

-How much does it cost to produce one doorbell at each production level?

-The company should pick a production of 125 doorbells if the price is above? $__.__

-If doorbells sell for $7 each what production level should the company pick and why?

-Why is there a decrease in efficiency?

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.

Which of the following bonds would be cheapest to deliver given a T-note futures price of 78.6075? (Assume that all bonds have semiannual coupon payments based on a par value of $100.)

Please show steps and formulas

Briefly explain the difference between Consumer Price Index and the GDP Deflator. Describe in your own words; you can include an exposition of the formula of each, if you wish.

Suppose the CPI in 2016, 2017, 2018 and 2019 are 100 and 110, 115 and 130 respectively. What is the inflation rate between 2016 and 2017, and between 2017 and 2018? How would you interpret the change in inflation rates between 2016 and 2018?

An office building is purchased with the following projected cash flows: NOI is expected to be $180,000 in year 1 with 2 percent annual increa The purchase price of the property is $910,000. 100% equity financing is used to purchase the property The property is sold at the end of year 4 for $970,000 with selling cost 8 %

Calculate the unlevered internal rate of return (IRR).

A. 19.9%

B. 20.7%

C. 21.5%

D. 22.3%

E. 23.1%

An office building is purchased with the following projected cash flows: NOI is expected to be $180,000 in year 1 with 2 percent annual increa The purchase price of the property is $910,000. 100% equity financing is used to purchase the property The property is sold at the end of year 4 for $970,000 with selling cost 8 %

Calculate the unlevered internal rate of return (IRR).

A. 19.9%

B. 20.7%

C. 21.5%

D. 22.3%

E. 23.1%

Exercise 3:

Create a worksheet that gives a price quote. You will select an item name and enter the quantity of that item purchased. Use Data Validation to create a drop down list for your item names. Your worksheet should look up the item name in the Price Table to find the Unit Price. Then it should calculate the Total Before Discount. Look up this amount in the Discount Table to find the discount percent. Then your worksheet should calculate the Discount Amount, the Total After Discount, add in Sales Tax (use an assumption for tax percentage), and give the final Total Due for the order. Place the Price Table, Discount Table and Sales Tax Percentage in the assumptions area.

Use the layout shown below starting your title in A4:

Price Quote (title)

Item:     (input)

Quantity: (input)

Unit Price:

Total Before Discount:

Discount %:

Discount Amount:

Total After Discount:

Sales Tax:

Total Due:

(The price and discount information is shown below…you may need to reconfigure the layout to meet your needs. All information shown below needs to be included in your Lookup Tables, even if it is not used in the problem.)

Price Information:

Unit Price                          Item #                 Item Name        

9.99                                   H5528                 Hat       

5.99                                   L8511                  Lanyard                             

14.99                                 T3592                  T-shirt                                             

19.99                                 D7435                 Drawstring Bag               

Discount Information:

Total Price

Before Discount ($)         Discount

$0 – $99.99                               0%

$100 – $399.99                        5%

$400 – $999.99                      10%

$1000 and over                      15%