ABC hotel has 200 rooms and has a policy to determine its room rates based on consumers capacity to pay. For example busniess clients pay $1,200 per night and group tours $900 per night. The incremental cost of servicing a room is worked out at $110 per room. On average, most guest stay for three (3) nights. Rooms division manager is trying to establish if four (4) week advance reservation should be taken for a group booking of 40 rooms and three (3) nights of 7th , 8th and 9th June 2018. According to the reservation record, 80 rooms for the three (3) nights of 7th , 8th , and 9th , June 2018 are already booked by various business clients, and the historical trends of the past four (4) years suggest that 90% of the remaing 120 rooms would be sold to other busniess clients. Your are required to a) Prepare a detailed recommendation document explaining the important facts and figures to support if the group tour booking of 40 rooms for three (3) nights, of 7th , 8th and 9th June 2018 should be accepted or rejected while considering the revenue maximisation, effect of revpar, incremental and relevant cost in preparing the recommendation documents b) In the highly competitive environment, tourism and hospitality busniess can aspire to optimise revenue for the long term survival. Discuss various pricing strategies and their effect on tourism and hospitality businesses as a whole focus on the pricing strategy in tourism and hospitality business and highlight their strengths and weaknesses as reported in the published literature.

Sleep-EZ Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of Sleep-EZ Suites's rooms are occupied on weekdays, and 60% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $10 per hour. The restaurant has 12 full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $8 per hour.

Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Enter percentages as whole numbers.

*PLEASE SHOW ALL WORK FOR EVERY QUESTION*

QUESTION 1:

An investor purchased a bond one year ago for $980. He received $17 in interest and sold the bond for $987. What is the holding-period return on his investment?

Note: Express your answer as a percentage with no percentage sign.

QUESTION 2:
The stock of company XYZ currently trades at $190 and just paid a dividend of $3.8. Suppose that your expectations regarding the stock price and dividends next year are as follows:

A: Compute the expected rate of return of XYZ. Express your answer as a percentage with two decimals and no percentage sign.

B: Compute the standard deviation of the rate of return of XYZ. Express your answer as a percentage with two decimals and no percentage sign.

Bond Bill

a) percentage change in price:

b) percentage change in price:

Bond Ted

a) percentage change in price:

b) percentage change in price:

(Weighted average cost of capital​)

ABBC Inc. operates a very successful chain of yogurt and coffee shops spread across the southwestern part of the United States and needs to raise funds for its planned expansion into the Northwest. The​ firm's balance sheet at the close of 2015 appeared as​ follows:

.At​ present, the​ firm's common stock is selling for a price equal to 3 times its book​ value, and the​ firm's investors require a return of

18 percent. The​ firm's bonds command a yield to maturity of 7 ​percent, and the firm faces a tax rate of 37 percent. At the end of the previous​ year, ABBC's bonds were trading near their par value.

a. What does​ ABBC's capital structure look​ like?

b. What is​ ABBC's weighted average cost of​ capital?

c. If​ ABBC's stock price were to rise such that it sold at 3.5 times its book value and the cost of equity fell to

15 ​percent, what would the​ firm's weighted average cost of capital be​ (assuming the cost of debt and tax rate do not​ change)?

I NEED ANSWERS TO THESE QUESTIONS:

a. What is the proportion of debt financing in​ ABBC's capital​ structure? ______​% ​(Round to two decimal​ places.)

What is the proportion of equity financing in​ ABBC's capital​ structure? ​______% ​(Round to two decimal​ places.)

b. What is​ ABBC's weighted average cost of​ capital? ______​% ​(Round to two decimal​ places.)

c. If​ ABBC's stock price were to rise such that it sold at 3.5 times its book value and the cost of equity fell to 15

​percent, what would the​ firm's weighted average cost of capital be​ (assuming the cost of debt and tax rate do not​ change)?

_____​% ​(Round to two decimal​ places.)

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

Accrued expenses at July 1 were paid in cash.

Billings to nongovernmental customers for water usage for the year amounted to $1,380,000; billings to the General Fund amounted to $107,000.

Liabilities for the following were recorded during the year:

Materials and supplies were used in the amount of $275,000, all for costs of sales and services.

$14,000 of old accounts receivable were written off.

Accounts receivable collections totaled $1,462,000 from nongovernmental customers and $48,400 from the General Fund.

$1,035,000 of accounts payable were paid in cash.

One year’s interest in the amount of $175,000 was paid.

Construction was completed on plant assets costing $250,000; that amount was transferred to Utility Plant in Service.

Depreciation was recorded in the amount of $260,000.

Interest in the amount of $25,000 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)

The Allowance for Uncollectible Accounts was increased by $9,900.

As required by the loan agreement, cash in the amount of $100,000 was transferred to Restricted Assets for eventual redemption of the bonds.

Accrued expenses, all related to costs of sales and services, amounted to $89,000.

Nominal accounts for the year were closed.

Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2017.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

1. Accrued expenses at July 1 were paid in cash.
2. Billings to nongovernmental customers for water usage for the year amounted to $1,387,000; billings to the General Fund amounted to $114,000.
3. Liabilities for the following were recorded during the year:

4. Materials and supplies were used in the amount of $284,000, all for costs of sales and services.
5. $14,500 of old accounts receivable were written off.
6. Accounts receivable collections totaled $1,514,000 from nongovernmental customers and $49,900 from the General Fund.
7. $1,067,000 of accounts payable were paid in cash.
8. One year’s interest in the amount of $180,500 was paid.
9. Construction was completed on plant assets costing $256,000; that amount was transferred to Utility Plant in Service.
10. Depreciation was recorded in the amount of $266,100.
11. Interest in the amount of $25,600 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)
12. The Allowance for Uncollectible Accounts was increased by $10,000.
13. As required by the loan agreement, cash in the amount of $108,000 was transferred to Restricted Assets for eventual redemption of the bonds.
14. Accrued expenses, all related to costs of sales and services, amounted to $97,000.
15. Nominal accounts for the year were closed.

Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2017.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.
  

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

Accrued expenses at July 1 were paid in cash.

Billings to nongovernmental customers for water usage for the year amounted to $1,383,000; billings to the General Fund amounted to $110,000.

Liabilities for the following were recorded during the year:

Materials and supplies were used in the amount of $278,000, all for costs of sales and services.

$14,200 of old accounts receivable were written off.

Accounts receivable collections totaled $1,482,800 from nongovernmental customers and $49,000 from the General Fund.

$1,047,800 of accounts payable were paid in cash.

One year’s interest in the amount of $177,200 was paid.

Construction was completed on plant assets costing $253,000; that amount was transferred to Utility Plant in Service.

Depreciation was recorded in the amount of $263,100.

Interest in the amount of $25,300 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)

The Allowance for Uncollectible Accounts was increased by $10,000.

As required by the loan agreement, cash in the amount of $103,000 was transferred to Restricted Assets for eventual redemption of the bonds.

Accrued expenses, all related to costs of sales and services, amounted to $92,000.

Nominal accounts for the year were closed.

Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2017.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

1. Accrued expenses at July 1 were paid in cash.
2. Billings to nongovernmental customers for water usage for the year amounted to $1,383,000; billings to the General Fund amounted to $110,000.
3. Liabilities for the following were recorded during the year:

4. Materials and supplies were used in the amount of $278,000 all for costs of sale and services.
5. $14,200 of old accounts receivable were written off.
6. Accounts receivable collections totaled $1,482,800 from nongovernmental customers and $49,000 from the General Fund.
7. $1,047,800 of accounts payable were paid in cash.
8. One year’s interest in the amount of $177,200 was paid.
9. Construction was completed on plant assets costing $253,000; that amount was transferred to Utility Plant in Service.
10. Depreciation was recorded in the amount of $263,100.
11. Interest in the amount of $25,300 was reclassified to Construction Work in Progress. (This was previously paid in item 8).
12. The Allowance for Uncollectible Accounts was increased by $10,000.
13. As required by the loan agreement, cash in the amount of $103,000 was transferred to Restricted Assets for eventual redemption of the bonds.
14. Accrued expenses, all related to costs of sales and services, amounted to $92,000.
15. Nominal accounts for the year were closed.

Required:

1. Record the transactions for the year in general journal form.
2. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
3. Prepare a Statement of Net Position as of June 30, 2017.
4. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.