IV. Public Goods

Consider an economy with 3 types of individuals, who differ only in their preferences for a public good (monuments, or M). Individuals of type I get a fixed benefit of 100 from the existence of monuments, whatever their number. Individuals of type II get marginal benefits of MB^II=30-3M, and individuals of type III get marginal benefits of MB^III=90-9M. There are 50 people of each type.

1. What is the marginal benefit of group I, i.e., MB^I ? (Hint: type I individuals get a fixed benefit, regardless of the number of monuments).

2. What is the social marginal benefit function for this public good? (Hint: note the number of individuals of each type)

3. If each monument costs $3600 to build, how many monuments should be built?

Stock A has an annual expected return of 8%, a beta of .9, and a firm-specific volatility of 50% Stock B has an annual expected return of 9%, a beta of 1.3, and a firm-specific volatility of 40% The market has a standard deviation of 20%, and the risk-free rate is is 2%.

What is the volatility of stock A? (in %, round to 1 decimal place)

Suppose we construct a portfolio built out of 50% stock A, 30% stock B, and 20% government t-bills.

What is the expected return of this portfolio? (in %, round to 1 decimal place)

What is the beta of this portfolio? (round to 2 decimal places)

What is the non-systematic variance of the portfolio? (round to 3 decimal places)

What is the total volatility of the portfolio? (in %, round to 1 decimal places)

1- What is the third leading cause of death?

2- A culture of safety could be built in the absence of

3- What level of risk in a medical setting is an unrealistic goal?

4- Which is true of only some black swan events?

5- Risk management involves which order of steps?

Instructions

(a)   Journalize the transactions.

(b)   Indicate the statement presentation of interest revenue and service charges.

Exercise 3

Para Float Company often requires customers to sign promissory notes for major credit purchases. Journalize the following transactions for Para Float Company.

Feb. 12    Accepted a $30,000, 4%, 60-day note from Yancy Blair for a 24-foot motorboat built to his specifications.

April 14    Received notification from Yancy Blair that he was unable to honor his promissory note but that he expects to pay the amount owed in May.

May 26    Received a check from Yancy Blair for the total amount owed.

June 10    Received notification by the bank that Yancy Blair check was being returned "NSF" and that Mr. Blair had declared personal bankruptcy.

In 2020 Ryce contributes nondepreciable property with an adjusted basis of $143,400 and a fair market value of $215,100 to the Montgomery Partnership in exchange for a one-half interest in profits and capital. In the next tax year, when the property's fair market value is $229,440, the partnership distributes the property to Jarvis, the other one-half partner. Jarvis's basis in the partnership interest was $229,440 immediately before the distribution. Which partner must recognize the built-in gain, what is the amount recognized, and what is the effect on that partner's basis in the partnership interest? What is the effect on Jarvis's basis in the nondepreciable property received?

Ryce must recognize gain of $71,700 in the year the property is distributed to Jarvis. He increases  his basis in his partnership interest by the gain recognized. Jarvis' basis in the property is $__________.

Wk 5 HCS/451

ABC Hospital is a small, privately-owned community hospital. It has been struggling to survive financially, as reimbursement rates have declined and consumers are being drawn to the larger state-of-the-art hospital facilities in urban areas that are perceived to have better quality. ABC Hospital was built in 1960 and has been operating in the same manner for many decades. The hospital meets legal and regulatory requirements but has not kept pace with some of the newer technologies and patient conveniences becoming more prevalent in the health care industry.

Write a 175- to 265-word response to the following:

• What strategies can the organization take to survive, improve its performance, and compete with other hospitals over the next 5 years?
• What are some advantages or disadvantages of these strategies?

Choose a company or organization and investigate a particular information system used by the Company – the system could be an ERP, a transaction processing system, a CRM system, a SCM system, etc

§ First select an organization and describe it, including business name, sector, and company size as a minimum.

§ Next, describe and explain the information to be investigated, system such as ERP, TPS, CRM, SCM, or similar, as discussed in class (custom-built proprietary systems are not allowed).

§ Then, highlight the problem faced by the company before implementing the system specified above and how the system helped resolve the problem.

§ Analyze (take apart and examine in depth) the implementation phase of the specified system, including implementation duration, implementation process or difficulties encountered, possible staff issues faced (e.g. training, redundancy, ethical), post-implementation performance etc.

You are thinking of making an investment in a new factory. The factory will generate revenues of $ 1 ,510, 000 per year for as long as you maintain it. You expect that the maintenance costs will start at $ 77 ,010 per year and will increase 4 % per year thereafter. Assume that all revenue and maintenance costs occur at the end of the year. You intend to run the factory as long as it continues to make a positive cash flow​ (as long as the cash generated by the plant exceeds the maintenance​ costs). The factory can be built and become operational immediately and the interest rate is 5 % per year. a. What is the present value of the​ revenues? b. What is the present value of the maintenance​ costs? c. If the plant costs $ 15 ,100 , 000 to​ build, should you invest in the​ factory?