You are ready to purchase a home that has a price of $400,000. You will make a down payment of $50,000 and will finance the remainder with a 15-year loan. The stated rate on the loan is 6% annual with monthly payments.

a) Compute the monthly payment that you will be making on this loan.

b) What would be your monthly payment if you financed the home for 30 years?

c) Provide an amortization schedule of three months for this loan, beginning with the first payment.

d) After living in this home for 10 years, you decided to sell the home and find that the sale price of the home will be $500,000. If you sell the home at this price, how much cash can you receive from the sale, ignoring the commissions?

Cameron likes to eat hot dogs, but franks and buns must be purchased separately. Cameron needs an equal number of franks and buns (1 frank + 1 bun = 1 hot dog; they are perfect complements) and has a budget of $3 for hot dogs. The price of hot dog buns is always $0.25 each. If the price of franks is $0.50 each, how many franks and buns will Cameron buy? If the price of franks increases to $0.75 each, how many franks and buns will Cameron buy? First, use your common sense to answer the question, and then explain your answer by drawing Cameron's indifference curves and budget lines for buns and franks. Put buns on the x-axis.

What is the price of each of the following bonds ($1,000 principal) if the current interest rate is 8 percent?

Firm A: coupon 5%, Maturity 7 years

Firm B: coupon 5%, Maturity 14 years

Firm C: coupon 12%, Maturity 7 years

Firm D: coupon 12%, Maturity 14 years

b) What is the duration of each bond?

c) Rank the bonds in terms of price fluctuations with the least volatile bond first and the most volatile bond last as judged by each bond’s duration

d) Confirm your volatility ranking by determining the percentage change in the price of each bond if interest rates rise up to 11%.

PLEASE SHOW WORK

Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,100 tons of plastic and sold 3,075 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $ 2,000, variable manufacturing costs were 16% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $ 2,788,000, and fixed administrative expenses were $ 530,000 Prepare income statements for each year using absorption costing. Reconcile the differences each year in net income under the two costing approaches.

1. Imagine that you are the CEO of Moet Hennessy Louis Vuitton SE (LVMH). You have just received share price valuation estimates for a potential buyout target, Rimowa, from two of your top financial analysts. You have confidence in their estimates because they have taken FIN 305 from the Shidler College of Business. Both analysts used the discounted cash flow (DCF) model to estimate the share price resulting in a valuation of $50, by the first analyst and $60, by the second analyst.

Part I: Identify two possible causes for the significant difference in valuation and briefly explain how each possible cause affected the DCF model’s share price estimate.

First, consider a 10 year bond with a coupon rate of 7% and annual coupon payments. Draw a graph showing the relationship between the price and the interest on this bond. The price should be on the y- axis and the interest rate on the x-axis. To compute the various prices, consider interest rates between 2% and 12% (use 0.5% increments). So your x-axis should go from 2%, then 2.5% ... until 11.5% and then 12%.

Is the relationship linear (i.e. is the slope constant)? Start at 7%. If interest rates go up or down by 0.5% is the price changing by the same amount? What type of relationship do we observe between prices and interest rates (liner, concave, convex or something else)?

The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good.

a) Identify an event that involves prices that you have observed in the news, history, or your life that might be explained with Supply and Demand.

Your answer needs to provide at least two paragraphs.
The first paragraph discusses your observation.
The second paragraph explains how you use Supply and Demand.
Please make sure to indentify the groups that determine the supply and the groups that determine the demand.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Jackson Company Produces plastic that is used for injection molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,000 tons of plastic and sold 3,500 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 15% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $2,800,000, and fixed administrative expenses were $500,000. Instructions

(A) Prepare income statements for each year using variable costing

(B) Prepare income statements for each year using absorption costing.

The demand for personalised point-to-point passenger transportation (traditionally known as “taxi”)

service is given by

P = 100 − Q

where P and Q are the price ($ per hour) and quantity (in hours) of taxi service, respectively. There are infinitely many people who are willing to supply taxi service as long as they can get $30 per hour for driving a taxi. In other words, the market supply of taxi service is horizontal at P = 30.

All passengers and drivers in the taxi markets are price-takers. However, one must have a taxi licence in order to drive a taxi. The government issues taxi licences to the effect that at most 30 hours of taxi services can be provided to the market.

(a) What is the market price for an hour of taxi service? (b) Calculate the total value of all taxi licences.

Technological innovation has allowed consumers to hire a taxi service from drivers without a taxi licence through an app called “Umber”. For the remaining parts of the questions, assume that Umber cannot set a price for its drivers, nor does it charge any person (passengers and drivers alike) anything for using its app. Also assume that passengers consider the service from Umber drivers the same as that from drivers with a taxi licence.

At first, the government makes driving for Umber illegal. As such, Umber drivers need to spend an extra cost of c per hour to avoid being caught. In other words, there are infinitely many drivers who are willing to provide a taxi service through Umber for $(30 + c) per hour.

(c) Suppose c = 30. What is the new market price for taxi service? If taxi licence holders continue to charge the price you solved in part (a), would any passenger take a taxi from a taxi licence holder?

4. (d) What must c be in order for (at least some) passengers to take a taxi from a taxi licence holder?

5. (e)   Calculate the consumers’ surplus in the taxi market when c is at the the level you have calculated in part (d).

6. After some consideration, the government decides to legalise the use of Umber while imposing a per unit tax of $30 on taxi service (whether or not the driver holds a taxi licence). Umber drivers no longer have to pay the amount c

7. (f) Find the amount of tax revenue collected. Would the tax revenue be enough to compensate taxi licence owners for the amount they have paid for their licences (i.e., the amount you solved in part (b))?

8. (g) Calculate the consumers’ surplus in the taxi market under this per unit tax scheme. Is it higher, lower or the same as the amount you have calculated in part (e)?

Code in C++

Must show: unit testing

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UsedFurnitureItem

1. Create a class named UsedFurnitureItem to represent a used furniture item that the store sells.
2. Private data members of a UsedFurnitureItem are:
   1. age (double) // age in years – default value for
   2. brandNewPrice (double) // the original price of the item when it was brand new
   3. description (string) // a string description of the item
   4. condition (char) // condition of the item could be A, B, or C.
   5. size (double) // the size of the item in cubic inches.
   6. weight (double) // the weight of the item in pounds.
3. Private member functions of a UsedFurnitureItem object are
   1. double CalculateCurrentPrice( ): Current price depends on age, brandNewPrice, and condition of the used furniture Item. If the item is in A-condition, the current price will go down by extra 10% of the brandNewPrice for each year of its age until 7 years (e.g., After the first year, and item with a $100 brandNewPrice will cost $90, after 2 years, $ 80, and so on). If the age is greater than 7 years, the price is fixed at 30% of the brandNewPrice. The current price of B-condition items goes down by extra 15 % of the brandNewPrice for each year until the 5^th year. After that, the current price is fixed at 20% of the brandNewPrice. Items with C-condition are priced at 10% of the brandNewPrice regardless of age.
4. 2. double CalculateShippingCost( ): Shipping cost of a UsedFurnitureItem depends on weight, size, and distance. While weight and size are member variables, shipping distance is provided as an additional argument to this function. Shipping rate is 1 cent per mile for items that are smaller than 1000 cubic inches and smaller than 20 pounds. Items with larger size or weight cost 2 cents per mile.
5. Public member functions of a UsedFurnitureItem
   1. Constructors – default and overloaded [default values: age = 1.0, brandNewPrice = 10.00, description = “Not available”, condition = ‘A’, size = 1.0, weight = 1.0]
   2. Accessors (getters)
6. 1. Mutators (setters) – You should ensure that invalid (zero or negative) values do not get assigned to age, brandNewPrice, size or weight data members. An invalid character (other than ‘A’, ‘B’ or ‘C’) should not be allowed to be assigned

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Test Program:

The test program will test each setter (for objects of both types in a sequence) by calling the setter to set a value and then call the corresponding getter to print out the set value. This test should be done twice on data members that could be set to invalid values (that have numerical or character data type) – once after trying to set invalid values and subsequently, once after setting them to valid values. The data members with string data types (model, description) can be tested just once.