Due to the corona virus,
How much of a decline do you anticipate for the Second Quarter of 2020? Will be in recession? This would mean GDP was down during the first quarter and/or the third quarter. Will it last long enough to be the second depression in 100 yeards?
On inflation/deflation,what would your life have been like during the early 80's when the inflation rate was in double digits? Imagine what life would have been like in Germany in 1923, when prices were rising daily and the Deutschmark was losing ground daily against the dollar?
In: Economics
It’s your birthday, and to celebrate you’re going to make your first bungee jump. You stand on a bridge 100 m above a raging river and attach a 30-m-long bungee cord to your harness. A bungee cord, for practical purposes, is just a long spring, and this cord has a spring constant of 40 N/m. Assume that your mass is 80 kg. After a long hesitation, you dive off the bridge. How far are you above the water when the cord reaches its maximum elongation?
In: Physics
The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:
| Jan. 20 | Purchased | 370 | units | @ | $ | 12 | = | $ | 4,440 | |
| Apr. 21 | Purchased | 140 | units | @ | $ | 13 | = | 1,820 | ||
| July 25 | Purchased | 220 | units | @ | $ | 15 | = | 3,300 | ||
| Sept. 19 | Purchased | 100 | units | @ | $ | 16 | = | 1,600 | ||
During the year, The Shirt Shop sold 690 T-shirts for $21 each
--------------------------------------------------------------------------------------------------------------------------------------------
b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
| FIFO | LIFO | Difference | |
| gross margin |
In: Accounting
Your cat's summer kitty-cottage needs a new roof. You feel a 15-year analysis period is in line with your cat's remaining lives. (there is no salvage value for old roofs.)
Thatch Slate
First cost $200 $350
Annual upkeep 50 20
Service life, in years 3 5
A. Graph the EUAC or EUAW for the alternatives. Construct a choice table for interest rates from 0% to 100%.
B. Which roof should you choose if your MARR is 12%? What is the actual value of the IRR on the incremental cost?
In: Operations Management
A CFO of a company with a market capitalization of $1B. The firm has 131 million shares outstanding, so the shares are trading at $11.42 per share. Each existing shareholder is sent one right for every share he or she owns. The CFO has not decided how many rights he will require to purchase a share of new stock. He will require either 2 rights to purchase one share at a price of $6.15 per share, or 4 rights to purchase two new shares at a price of $7.08 per share. How much money will the first approach raise?
In: Finance
A firm is expected to pay a dividend of $10 next year and afterwards dividends are expected to grow at 3% per annum in perpetuity. Assume the firm's required rate of return is 5%.
a. What should be its stock price?
b. A second firm that is expected to pay also a dividend of $10 next year has the same stock price as the first. However, after analyzing the financial statements of this second firm you realize that its dividends are likely to grow only at 2% per annum in perpetuity. If both firms are correctly priced what should be the second firm's required rate of return?
In: Finance
Enviro Company issues 8%, 10-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1⁄2. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 ½, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date?
In: Accounting
Suppose that the market price is given by max{0,10 -Q} where Q is the total market quantity. Firms in this market choose quantity and then the price in the market is revealed. Suppose that there are two firms in the market, Firm A and Firm B. Each firm has a constant marginal cost of one and no fixed costs. Suppose that Firm A chooses output first, it is then observed by Firm B and then Firm B makes her choice of output. Find the equilibrium level of each firm’s output and profit in this market. Compare this outcome to the outcome when both firms choose the level of output simultaneously. (Stakelberg Duopoly)
In: Economics
You plan to buy a condo with a price of $375,000. You can pay 20% of the total price and need to borrow the rest from the bank. Currently TD Canada Trust offers you a fixed rate mortgage of 2.14%. You plan to pay back your mortgage loan in 25 years. Please find out your monthly mortgage payment. After first 4 monthly payments, please find out the unpaid principal balance of your mortgage loan. Please show your detail calculation. If you use financial calculator, please list the input and output numbers.
In: Finance
Ms. Parvati purchased a bond at a price of Rs. 104,800 that pays a coupon of 8% and a face value of Rs 100,000. This bond matures in 5-years from now. After investing in the bond yesterday She heard about another opportunity that pays a coupon of 5% PA in the first year, 7% PA in the second year, 9% PA in the third year, 10% PA in the fourth year and finally 12% PA in the fifth year. The price of this bond is Rs. 110,000 and a maturity of 5 years. She is anxious to know whether she made a mistake buying the 8% bond.
In: Accounting