Learning Objective: 1. Define economics, macro and micro, and how economic questions are posed. Develop the baseline for the economic way of thinking.
Assessment Objectives:
Identify factors that affect demand.
Graph demand curves and demand shifts.
Identify factors that affect supply.
Graph supply curves and supply shifts.
Analyze market outcomes such as changes in equilibrium price and quantity.
Question 1: Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state which curve would shift: the supply curve or the demand curve. Then state whether the curve would shift to the right (an increase in supply or demand), or shift to the left (a decrease in supply or demand). Explain, which determinant of demand or supply is affected.
Cars are becoming more fuel efficient, and therefore get more miles to the gallon.
The winter is exceptionally cold.
The economies of some major oil-using nations, like Japan, slow down.
A war in the Middle East disrupts oil-pumping schedules.
Landlords install additional insulation in buildings.
The price of solar energy falls dramatically.
Chemical companies invent a new, popular kind of plastic made from oil.
Price of oil increases.
Your Answers:
Question # | Would the demand curve or supply curve shift? | What determinant of demand or supply is affected? | Would the curve shift to the right or left? | Changes in the equilibrium price | Changes in the equilibrium quantity |
Example | Demand | Tastes and Preferences | Right | increases | increases |
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In: Economics
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RAK, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 percent higher. If there is a recession, then EBIT will be 25 percent lower. RAK is considering a $140,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 12,000 shares outstanding. RAK has a tax rate of 35 percent. |
| a-1 |
Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| EPS | ||
| Recession | $ | |
| Normal | $ | |
| Expansion | $ | |
| a-2 |
Calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Percentage changes in EPS | ||
| Recession | % | |
| Expansion | % | |
| b-1 |
Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| EPS | ||
| Recession | $ | |
| Normal | $ | |
| Expansion | $ | |
| b-2 |
Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Percentage changes in EPS | ||
| Recession | % | |
| Expansion | % | |
In: Finance
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RAK, Inc., has no debt outstanding and a total market value of $250,000. Earnings before interest and taxes, EBIT, are projected to be $42,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 30 percent lower. RAK is considering a $100,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. Ignore taxes for this problem. |
| a-1 |
Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| EPS | |||||||||||||||||||||||||||||||||||||
| Recession | $ | ||||||||||||||||||||||||||||||||||||
| Normal | $ | ||||||||||||||||||||||||||||||||||||
| Expansion | $ | ||||||||||||||||||||||||||||||||||||
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In: Finance
Beckett, Inc., has no debt outstanding and a total market value of $250,000. Earnings before interest and taxes, EBIT, are projected to be $42,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 30 percent lower. Beckett is considering a debt issue of $100,000 with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. The company has a tax rate 35 percent. Assume the stock price remains constant.
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)
EPS Recession $
Normal $
Expansion $
a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a percent.)
Percentage changes in EPS
Recession %
Expansion %
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)
EPS Recession $
Normal $
Expansion $
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)
Percentage changes in EPS
Recession %
Expansion %
In: Finance
In: Finance
In: Finance
Which of the following best describes the isolation property in regards to transactions?
A)Either all actions in a transaction are executed or no actions are done
B)The DBMS changes from one consistent state to another consistent state when a transaction completes successfully
C)A transaction executes with the same outcome, without any impact from other transactions executing concurrently
D)The DBMS guarantees that changes are made persistently upon successful completion of a transaction
2)Which of the following statements best describes a phantom read
A)One user reads a set of rows from a table. Another user inserts a row that matches the where condition read by the first user. The first user reads the same set of rows again getting the new row in addition to the rows that the user read the first time.
B)A select from one user calculating a summary or aggregate function (e.g. avg, max, sum, etc.) reads some rows from a table. At the same time another user is updating some of those same rows to contain different values. The first user reads some of the rows before the update changes them and reads some rows after the update changes them.
C)Two users update the same columns of the same row of the same table at the same time. One update will be overwritten by the other.
D)One user reads the same row more than once. Between the reads, an update from another user modifies the row.
3)If a schedule’s dependency graph is cyclic, then the schedule it describes is serializable.
A)True
B)False
4)By themselves, exclusive write locks and shared read locks do not guarantee serializabililty.
A)True
B)False
In: Computer Science
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Music City, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 percent higher. If there is a recession, then EBIT will be 25 percent lower. The company is considering a $140,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 12,000 shares outstanding. The company has a tax rate 35 percent. Assume the stock price is constant. |
| a-1. |
Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| EPS | ||
| Recession | $ | |
| Normal | $ | |
| Expansion | $ | |
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| a-2. |
Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.) |
| Percentage changes in EPS | ||
| Recession | % | |
| Expansion | % | |
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| b-1. |
Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| EPS | ||
| Recession | $ | |
| Normal | $ | |
| Expansion | $ | |
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| b-2. |
Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Percentage changes in EPS | ||
| Recession | % | |
| Expansion | % | |
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In: Finance
Castle, Inc., has no debt outstanding and a total market value
of $240,000. Earnings before interest and taxes, EBIT, are
projected to be $28,000 if economic conditions are normal. If there
is strong expansion in the economy, then EBIT will be 10 percent
higher. If there is a recession, then EBIT will be 25 percent
lower. The firm is considering a debt issue of $48,000 with an
interest rate of 4 percent. The proceeds will be used to repurchase
shares of stock. There are currently 20,000 shares outstanding.
Ignore taxes for this problem.
a-1. Calculate earnings per share, EPS, under each of the
three economic scenarios before any debt is issued. (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
| EPS | |||
| Recession | $ | ||
| Normal | $ | ||
| Expansion | $ | ||
a-2. Calculate the percentage changes in EPS when the
economy expands or enters a recession. (A negative answer
should be indicated by a minus sign. Do not round intermediate
calculations. Enter your answers as a percent rounded to the
nearest whole number, e.g., 32.)
| Percentage changes in EPS | ||
| Recession | % | |
| Expansion | % | |
b-1. Calculate earnings per share (EPS) under each of the
three economic scenarios assuming the company goes through with
recapitalization. (Do not round intermediate calculations
and round your answers to 2 decimal places, e.g.,
32.16.)
| EPS | |||
| Recession | $ | ||
| Normal | $ | ||
| Expansion | $ | ||
b-2. Given the recapitalization, calculate the percentage
changes in EPS when the economy expands or enters a recession.
(A negative answer should be indicated by a minus sign. Do
not round intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places, e.g.,
32.16.)
| Percentage changes in EPS | ||
| Recession | % | |
| Expansion | % | |
In: Finance
|
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 22 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 900 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 900 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent.
2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. $ - Select your answer -FavorableUnfavorableItem 6 3. What if the actual number of quarts of oil purchased in June had been 5,370 quarts, and the materials price variance was calculated at the time of purchase? If required, round your answers to the nearest cent. What would be the materials price variance (MPV)? $ - Select your answer -FavorableUnfavorableItem 8 What would be the materials usage variance (MUV)? $ - Select your answer -FavorableUnfavorableItem 10 |
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Partially Correct
In: Finance