Solo Inc. is proposing a rights offering. Presently there are 200,000 shares outstanding at $80 each. Two rights will be required to buy one new share for a subscription price of $50. What will be the ex-rights price (the price after the offering is complete)?
In: Finance
The table below contains information about the production, costs and profits of a firm.
The price faced by the firm is $40 per unit.
There are 50 empty cells in the table.
(a) Fill in all the empty cells.
|
Output |
Total Fixed Costs |
Total Variable Costs |
Marginal Costs |
Average Variable Costs |
Average Fixed Costs |
Average Total Costs |
Price per unit |
Profits |
|
0 |
12 |
|||||||
|
1 |
12 |
50 |
50.0 |
50.0 |
-22.0 |
|||
|
2 |
12 |
75 |
25.0 |
37.5 |
43.5 |
|||
|
3 |
10.0 |
28.3 |
||||||
|
4 |
20.0 |
26.3 |
||||||
|
5 |
133 |
28.0 |
26.6 |
|||||
|
6 |
160 |
26.7 |
||||||
|
7 |
198 |
28.3 |
||||||
|
8 |
12 |
270 |
72.0 |
38.0 |
||||
|
9 |
12 |
320 |
50.0 |
|||||
|
10 |
12 |
400 |
40.0 |
1.2 |
41.2 |
(b) Identify the output level at which profits are maximized. Show that this confirms the profit maximizing rule for the perfectly competitive firm.
In: Economics
Pelican Stores
Pelican Stores, a division of National Clothing, is a chain of
women’s apparel stores operating throughout the country. The chain
recently ran a promotion in which discount coupons were sent to
customers of other National Clothing stores. data collected for a
sample of 100 in-store credit card transactions at Pelican Stores
during one day while the promotion was running are contained in the
file named PelicanStores. Table 2.19 shows a portion of the data
set. The Proprietary Card method of payment refers to charges made
using a National Clothing charge card. Customers who made a
purchase using a discount coupon are referred to as promotional
customers and customers who made a purchase but did not use a
discount coupon are referred to as regular customers. because the
promo- tional coupons were not sent to regular Pelican Stores
customers, management considers the sales made to people presenting
the promotional coupons as sales it would not other- wise make. Of
course, Pelican also hopes that the promotional customers will
continue to shop at its stores.
Most of the variables shown in Table 2.19 are self-explanatory, but two of the variables require some clarification.
- Items The total number of items purchased
- Net Sales The total amount ($) charged to the credit card
Pelican’s management would like to use this sample data to learn about its customer base and to evaluate the promotion involving discount coupons.
Managerial Report
Use the tabular and graphical methods of descriptive statistics to help management develop a customer profile and to evaluate the promotional campaign. At a minimum, your report should include the following:
1. Percent frequency distribution for key variables.
2. A bar chart or pie chart showing the number of customer purchases attributable to the method of payment.
3. A crosstabulation of type of customer (regular or promotional) versus net sales. Comment on any similarities or differences present.
4. A scatter diagram to explore the relationship between net sales and customer age.
Table 2.19
| Customer | Type of Customer | Items | Net Sales | Method of Payment | Gender | Marital Status | Age |
| 1 | Regular | 1 | 39.50 | Discover | Male | Married | 32 |
| 2 | Promotional | 1 | 102.40 | Proprietary Card | Female | Married | 36 |
| 3 | Regular | 1 | 22.50 | Proprietary Card | Female | Married | 32 |
| 4 | Promotional | 5 | 100.40 | Proprietary Card | Female | Married | 28 |
| 5 | Regular | 2 | 54.00 | MasterCard | Female | Married | 34 |
| 6 | Regular | 1 | 44.50 | MasterCard | Female | Married | 44 |
| 7 | Promotional | 2 | 78.00 | Proprietary Card | Female | Married | 30 |
| 8 | Regular | 1 | 22.50 | Visa | Female | Married | 40 |
| 9 | Promotional | 2 | 56.52 | Proprietary Card | Female | Married | 46 |
| 10 | Regular | 1 | 44.50 | Proprietary Card | Female | Married | 36 |
| 11 | Regular | 1 | 29.50 | Proprietary Card | Female | Married | 48 |
| 12 | Promotional | 1 | 31.60 | Proprietary Card | Female | Married | 40 |
| 13 | Promotional | 9 | 160.40 | Visa | Female | Married | 40 |
| 14 | Promotional | 2 | 64.50 | Visa | Female | Married | 46 |
| 15 | Regular | 1 | 49.50 | Visa | Male | Single | 24 |
| 16 | Promotional | 2 | 71.40 | Proprietary Card | Male | Single | 36 |
| 17 | Promotional | 3 | 94.00 | Proprietary Card | Female | Single | 22 |
| 18 | Regular | 3 | 54.50 | Discover | Female | Married | 40 |
| 19 | Promotional | 2 | 38.50 | MasterCard | Female | Married | 32 |
| 20 | Promotional | 6 | 44.80 | Proprietary Card | Female | Married | 56 |
| 21 | Promotional | 1 | 31.60 | Proprietary Card | Female | Single | 28 |
| 22 | Promotional | 4 | 70.82 | Proprietary Card | Female | Married | 38 |
| 23 | Promotional | 7 | 266.00 | American Express | Female | Married | 50 |
| 24 | Regular | 2 | 74.00 | Proprietary Card | Female | Married | 42 |
| 25 | Promotional | 2 | 39.50 | Visa | Male | Married | 48 |
| 26 | Promotional | 1 | 30.02 | Proprietary Card | Female | Married | 60 |
| 27 | Regular | 1 | 44.50 | Proprietary Card | Female | Married | 54 |
| 28 | Promotional | 5 | 192.80 | Proprietary Card | Female | Single | 42 |
| 29 | Promotional | 3 | 71.20 | Proprietary Card | Female | Married | 32 |
| 30 | Promotional | 1 | 18.00 | Proprietary Card | Female | Married | 70 |
| 31 | Promotional | 2 | 63.20 | MasterCard | Female | Married | 28 |
| 32 | Regular | 1 | 75.00 | Proprietary Card | Female | Married | 52 |
| 33 | Promotional | 3 | 63.20 | Proprietary Card | Female | Married | 44 |
| 34 | Regular | 1 | 40.00 | Proprietary Card | Female | Married | 34 |
| 35 | Promotional | 5 | 105.50 | MasterCard | Female | Married | 56 |
| 36 | Regular | 1 | 29.50 | MasterCard | Male | Single | 36 |
| 37 | Regular | 2 | 102.50 | Visa | Female | Single | 42 |
| 38 | Promotional | 6 | 117.50 | Proprietary Card | Female | Married | 50 |
| 39 | Promotional | 5 | 13.23 | Proprietary Card | Female | Married | 44 |
| 40 | Regular | 2 | 52.50 | Proprietary Card | Female | Married | 58 |
| 41 | Promotional | 13 | 198.80 | Proprietary Card | Female | Married | 42 |
| 42 | Promotional | 4 | 19.50 | Visa | Female | Married | 46 |
| 43 | Regular | 2 | 123.50 | Proprietary Card | Female | Married | 48 |
| 44 | Promotional | 1 | 62.40 | Proprietary Card | Female | Married | 54 |
| 45 | Promotional | 2 | 23.80 | Proprietary Card | Female | Married | 38 |
| 46 | Promotional | 2 | 39.60 | Proprietary Card | Female | Married | 60 |
| 47 | Regular | 1 | 25.00 | MasterCard | Female | Married | 46 |
| 48 | Promotional | 3 | 63.64 | Proprietary Card | Female | Married | 30 |
| 49 | Promotional | 1 | 14.82 | Proprietary Card | Female | Married | 32 |
| 50 | Promotional | 9 | 145.20 | MasterCard | Female | Married | 46 |
| 51 | Promotional | 6 | 176.62 | Proprietary Card | Female | Married | 38 |
| 52 | Promotional | 5 | 118.80 | Proprietary Card | Male | Married | 68 |
| 53 | Regular | 1 | 58.00 | Discover | Female | Single | 78 |
| 54 | Regular | 2 | 74.00 | Visa | Female | Single | 20 |
| 55 | Regular | 2 | 49.50 | MasterCard | Female | Married | 32 |
| 56 | Promotional | 3 | 141.60 | Proprietary Card | Female | Married | 38 |
| 57 | Promotional | 6 | 123.10 | Proprietary Card | Female | Married | 54 |
| 58 | Promotional | 2 | 80.40 | Proprietary Card | Female | Married | 48 |
| 59 | Promotional | 4 | 65.20 | MasterCard | Female | Married | 46 |
| 60 | Promotional | 4 | 113.00 | Proprietary Card | Female | Single | 50 |
| 61 | Promotional | 1 | 108.80 | Proprietary Card | Female | Married | 46 |
| 62 | Promotional | 3 | 59.91 | Proprietary Card | Female | Single | 30 |
| 63 | Promotional | 5 | 53.60 | Proprietary Card | Female | Married | 54 |
| 64 | Promotional | 1 | 31.60 | Proprietary Card | Female | Single | 42 |
| 65 | Promotional | 2 | 49.50 | Proprietary Card | Female | Married | 48 |
| 66 | Promotional | 1 | 39.60 | Proprietary Card | Female | Married | 62 |
| 67 | Promotional | 2 | 59.50 | Proprietary Card | Female | Married | 34 |
| 68 | Promotional | 5 | 146.80 | Proprietary Card | Female | Married | 28 |
| 69 | Promotional | 2 | 47.20 | Proprietary Card | Male | Married | 46 |
| 70 | Promotional | 8 | 95.05 | Proprietary Card | Female | Married | 54 |
| 71 | Promotional | 5 | 155.32 | Proprietary Card | Female | Married | 30 |
| 72 | Promotional | 4 | 58.00 | MasterCard | Female | Married | 32 |
| 73 | Regular | 1 | 69.00 | Proprietary Card | Female | Single | 22 |
| 74 | Promotional | 2 | 46.50 | Proprietary Card | Female | Married | 32 |
| 75 | Promotional | 2 | 45.22 | Proprietary Card | Female | Married | 74 |
| 76 | Promotional | 4 | 84.74 | Proprietary Card | Female | Married | 62 |
| 77 | Regular | 2 | 39.00 | Proprietary Card | Female | Married | 42 |
| 78 | Promotional | 4 | 111.14 | Proprietary Card | Female | Married | 28 |
| 79 | Promotional | 3 | 86.80 | Proprietary Card | Female | Married | 38 |
| 80 | Regular | 2 | 89.00 | Discover | Female | Married | 54 |
| 81 | Promotional | 2 | 78.00 | MasterCard | Female | Married | 68 |
| 82 | Promotional | 6 | 53.20 | Proprietary Card | Female | Single | 30 |
| 83 | Promotional | 4 | 58.50 | Visa | Female | Married | 36 |
| 84 | Promotional | 3 | 46.00 | Proprietary Card | Female | Married | 44 |
| 85 | Regular | 2 | 37.50 | Visa | Female | Married | 44 |
| 86 | Promotional | 1 | 20.80 | Proprietary Card | Female | Married | 62 |
| 87 | Regular | 6 | 144.00 | MasterCard | Female | Single | 48 |
| 88 | Regular | 4 | 107.00 | Proprietary Card | Female | Married | 36 |
| 89 | Promotional | 1 | 31.60 | Proprietary Card | Female | Single | 20 |
| 90 | Promotional | 6 | 57.60 | Proprietary Card | Female | Married | 42 |
| 91 | Promotional | 4 | 95.20 | Proprietary Card | Female | Married | 54 |
| 92 | Promotional | 1 | 22.42 | Proprietary Card | Female | Married | 54 |
| 93 | Regular | 5 | 159.75 | Proprietary Card | Female | Married | 72 |
| 94 | Promotional | 17 | 229.50 | Proprietary Card | Female | Married | 30 |
| 95 | Regular | 3 | 66.00 | American Express | Female | Married | 46 |
| 96 | Regular | 1 | 39.50 | MasterCard | Female | Married | 44 |
| 97 | Promotional | 9 | 253.00 | Proprietary Card | Female | Married | 30 |
| 98 | Promotional | 10 | 287.59 | Proprietary Card | Female | Married | 52 |
| 99 | Promotional | 2 | 47.60 | Proprietary Card | Female | Married | 30 |
| 100 | Promotional | 1 | 28.44 | Proprietary Card | Female | Married | 44 |
In: Statistics and Probability
Your company has two divisions: One division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computer division, in terms of both risk and financing. You go online and find the following information: Dell's beta is 1.16, the risk-free rate is 4.1 %, its market value of equity is $ 65.5 billion, and it has $ 700 million worth of debt with a yield to maturity of 6.4 %. Your tax rate is 40 % and you use a market risk premium of 5.2 % in your WACC estimates. a. What is an estimate of the WACC for your computer sales division? b. If your overall company WACC is 11.6 % and the computer sales division represents 44 % of the value of your firm, what is an estimate of the WACC for your software division? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. What is an estimate of the WACC for your computer sales division? The weighted average cost of capital for your computer sales division is nothing%
In: Finance
Do heavier cars really use more gasoline? Suppose a car is chosen at random. Let x be the weight of the car (in hundreds of pounds), and let y be the miles per gallon (mpg).
| x | 25 | 46 | 33 | 47 | 23 | 40 | 34 | 52 |
| y | 33 | 22 | 23 | 13 | 29 | 17 | 21 | 14 |
Complete parts (a) through (e), given Σx = 300, Σy = 172, Σx2 = 12,028, Σy2 = 4038, Σxy = 5996, and
r ≈ −0.883.
(a) Draw a scatter diagram displaying the data.
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(b) Verify the given sums Σx, Σy,
Σx2, Σy2, Σxy, and
the value of the sample correlation coefficient r. (Round
your value for r to three decimal places.)
| Σx = | 2 |
| Σy = | 3 |
| Σx2 = | 4 |
| Σy2 = | 5 |
| Σxy = | 6 |
| r = | 7 |
(c) Find x, and y. Then find the equation of the
least-squares line = a + bx. (Round
your answers for x and y to two decimal places.
Round your answers for a and b to three decimal
places.)
| x | = 8 | |
| y | = 9 | |
| = 10 | + 11 x |
(d) Graph the least-squares line. Be sure to plot the point
(x, y) as a point on the line.
(e) Find the value of the coefficient of determination
r2. What percentage of the variation in
y can be explained by the corresponding variation
in x and the least-squares line? What percentage is
unexplained? (Round your answer for r2
to three decimal places. Round your answers for the percentages to
one decimal place.)
| r2 = | 13 |
| explained | 14 % |
| unexplained | 15 % |
(f) Suppose a car weighs x = 41 (hundred pounds). What
does the least-squares line forecast for y = miles per
gallon? (Round your answer to two decimal places.)
16 mpg
In: Statistics and Probability
The Morton Supply Company produces clothing, footwear, and accessories for dancing and gymnastics. They produce three models of pointe shoes used by ballerinas to balance on the tips of their toes. The shoes are produced from four materials: cardstock, satin, plain fabric, and leather. The number of square inches of each type of material used in each model of shoe, the amount of material available, and the profit/model are shown below:
|
Material (measured in square inches) |
Model 1 | Model 2 | Model 3 | Material Available |
| Cardstock | 12 | 10 | 14 | 1,200 |
| Satin | 24 | 20 | 15 | 2,000 |
| Plain fabric | 40 | 40 | 30 | 7,500 |
| Leather | 11 | 11 | 10 | 1,000 |
| Profit per model | $50 | $44 | $40 |
Please help answer the following:
| a. Identify the decision variables, objective function, and constraints in simple verbal statements. |
|
b. Mathematically formulate a linear optimization model. c. Implement the linear optimization model that you developed on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report and identify the binding constraints |
In: Statistics and Probability
Doug Casey is in charge of planning and coordinating next spring’s sales management training program for his company. Doug listed the following activity information for this project:
| Immediate | Time (weeks) | ||||
| Activity | Description | Predecessor(s) | Optimistic | Most Probable | Pesssimistic |
| A | Plan topic | — | 2 | 2 | 2 |
| B | Obtain speakers | A | 1.5 | 2 | 2.5 |
| C | List meeting locations | — | 1 | 2.5 | 10 |
| D | Select location | C | 1 | 1.5 | 2 |
| E | Finalize speaker travel plans | B, D | 0.5 | 1 | 1.5 |
| F | Make final check with speakers | E | 1.5 | 2 | 2.5 |
| G | Prepare and mail brochure | B, D | 4 | 4.5 | 8 |
| H | Take reservations | G | 2 | 4 | 6 |
| I | Handle last-minute details | F, H | 2 | 3 | 4 |
| (i) | (ii) | ||
| (iii) | (iv) |
| Activity | Expected Time | Variance | ||
| A | fill in the blank 2 | fill in the blank 3 | ||
| B | fill in the blank 4 | fill in the blank 5 | ||
| C | fill in the blank 6 | fill in the blank 7 | ||
| D | fill in the blank 8 | fill in the blank 9 | ||
| E | fill in the blank 10 | fill in the blank 11 | ||
| F | fill in the blank 12 | fill in the blank 13 | ||
| G | fill in the blank 14 | fill in the blank 15 | ||
| H | fill in the blank 16 | fill in the blank 17 | ||
| I | fill in the blank 18 | fill in the blank 19 | ||
| Earliest | Latest | Earliest | Latest | Critical | ||||||||
| Activity | Start | Start | Finish | Finish | Slack | Activity | ||||||
| A | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | No | ||||||
| B | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 | fill in the blank 29 | fill in the blank 30 | No | ||||||
| C | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 | fill in the blank 36 | |||||||
| D | fill in the blank 38 | fill in the blank 39 | fill in the blank 40 | fill in the blank 41 | fill in the blank 42 | |||||||
| E | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | fill in the blank 47 | fill in the blank 48 | |||||||
| F | fill in the blank 50 | fill in the blank 51 | fill in the blank 52 | fill in the blank 53 | fill in the blank 54 | |||||||
| G | fill in the blank 56 | fill in the blank 57 | fill in the blank 58 | fill in the blank 59 | fill in the blank 60 | Yes | ||||||
| H | fill in the blank 62 | fill in the blank 63 | fill in the blank 64 | fill in the blank 65 | fill in the blank 66 | Yes | ||||||
| I | fill in the blank 68 | fill in the blank 69 | fill in the blank 70 | fill in the blank 71 | fill in the blank 72 | Yes | ||||||
In: Accounting
A monopsony hire one worker at a wage of $6, two workers at a wage of $7 each, (by adding one worker each will cause a one dollar increase to the wage). If the marginal revenue product for all workers is $17, asking how much will the wage to pay?
In: Economics
Table 11-6 Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident’s willingness to pay for each hour of cleaning. Hours John James Mary Lydia 1 $30 $50 $40 $10 2 25 40 37 9 3 20 30 34 8 4 15 20 30 7 5 9 10 25 6 6 3 0 15 5 7 0 0 5 4 Refer to Table 11-6. Suppose the cost of cleaning the lake is $20 per hour, and that the residents have agreed to split the cost of cleaning the lake equally. If the residents vote to determine the number of hours spent cleaning the lake, basing their decision solely on what maximizes their own surplus, what is the most number of hours for which all four residents would vote “yes?” a. 6 hours b. 4 hours c. 3 hours d. 5 hours
In: Economics
Jessica’s Catering Service bakes and delivers lasagnas to parties and group meetings. In a typical week, Jessica has around 40 orders. Each order involves a specific amount of the required lasagna in pounds. A small group would need about 20 pounds, whereas a large group would need almost triple that amount. The following table shows the different customer orders that have come in this week, grouped into eight categories by weight.
|
Job type |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Weight (pounds) |
20 |
25 |
30 |
35 |
40 |
45 |
50 |
55 |
|
Number |
10 |
5 |
4 |
7 |
3 |
9 |
2 |
1 |
15 points: Jessica has an inventory of 100 six-pound trays and 80 ten-pound trays. Although she appears to have enough capacity in her trays, she would like to plan her orders so that the amount of excess lasagna is kept to a minimum.
5 points: How many six-pound trays and ten-pound trays should Jessica use for each of the orders?
**solve it using solver in excel
In: Operations Management