In: Economics
Suppose there is an import quota on sugar. The inverse demand for sugar is P=100-2QD. The inverse supply for sugar is P=20+2QS. The world price (Pw)= 30 usd/lb. There is a quota set at 20 million/lbs of sugar. P is in Usd/lb.
A) What is the purpose of this policy?
B) Create a graph to demonstrate the impact of the sugar import quota. Include labels and units on both axis.
C) Explain the consequences of this policy, and who supports this policy politically
In: Economics
The company has just come up with a new highly profitable product. As a result it plans to retain all earnings for the next 3 years (i.e. b=1) and invest them at a return (R) of 100% per year. After three years the company will go back to its old policy of retaining 60 percent of its earnings and investing them at 20 percent.
In: Finance
[Ⅱ] Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below
|
Case |
Percent of Stock Owned |
Investment Cost |
S Company Equity Balances |
||
|
Common Stock |
Other Contributed Capital |
Retained Earnings |
|||
|
a. |
100% |
$1,200,000 |
$600,000 |
$350,000 |
$200,000 |
|
b. |
85% |
850,000 |
500,000 |
200,000 |
100,000 |
|
c. |
90% |
1,000,000 |
750,000 |
300,000 |
(250,000) |
|
d. |
60% |
600,000 |
350,000 |
-0- |
300,000 |
In: Accounting
1. Two refrigerators are available for purchase. One costs more to buy but less to operate as shown below. Both are expected to last 10 years.
| Refrigerator A | Refrigerator B |
|
| Purchase Price | $840 | $700 |
| Annual Operating | ||
| Cost (in each year): | $100 | $120 |
Which is the cheaper source of refrigeration over a ten-year period? Does the prevailing interest rate affect your answer? (Hint: calculate the answer using 3% and again using 12%.)
In: Accounting
A company has an issue of convertible bonds with a $1,000 par value. The bonds have a 10% coupon rate, have a 10-year maturity, and are convertible into 100 shared of common stock. The yield to maturity on bonds of similar risk is 11% and the market price of the firm's common stock is currently $9.00. Based on this information: a) What is the conversation value of this bond if it is selling at $970? b) What is it's pure bond value? c) What is its conversion premium?
In: Finance
Cavu Air Inc., issued 15 Year bonds 2 years ago at a coupon rate of 7.30% percent. The bonds make semi annual payments. If these bonds currently sell for 103 percent of par value, what is the YTM? Settlement date 1/1/2000 Maturity date 1/1/2013 Annual coupon rate 7.30% Coupons per year 2 Face value (% of par) 100 Bond price (% of par) 103
In: Finance
A stock is currently priced at $100. Over each of the next two three month periods it is expected to increase by 10% or fall by 10%. Consider a six month call option with a strike of $95. The risk free rate is 8% per annum.
What is the risk neutral probability p?
MC Options: A. 0.601 B. 0.399 C. 0.65 D. 0.55
What is the call price?
MC Options: A. 10.87 B. 11.55 C. 9.00 D. 8.60
In: Finance
DATE Ending Inventory(end of year prices) Price Index
December 31, 2013 $ 69,400 100
December 31, 2014 102,080 116
December 31, 2015 110,208 128
December 31, 2016 123,816 132
December 31, 2017 116,058 138
Use the dollar-value LIFO method to compute the ending inventory for Shamrock Company for 2013 through 2017.
Ending Inventory
2013 - 69400
2014 - ?
2015 - ?
2016 - ?
2017- ?
In: Accounting
Fenway Athletic Club plans to offer its members preferred stock with a par value of $100 and an annual dividend rate of 6%. What price should these members be willing to pay for the returns they want?
a. Theo wants a return of 9%. $_______ (Round to the nearest cent.)
b. Jonathan wants a return of 13%. $_______ (Round to the nearest cent.)
c. Josh wants a return of 15%. $_______ (Round to the nearest cent.)
d. Terry wants a return of 17%. $_______ (Round to the nearest cent.)
In: Finance