Castle, Inc., has no debt outstanding and a total market value of $250,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 20 percent lower. The firm is considering a debt issue of $105,000 with an interest rate of 4 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. The firm 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 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 %

Variable Costing Income Statement and Contribution Margin Analysis for a Service Company

The actual and planned data for Underwater University for the Fall term were as follows:

Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost.

a. Prepare a variable costing income statement showing the contribution margin and income from operations for the Fall term.

b. Prepare a contribution margin analysis report comparing planned with actual performance for the Fall term. If an amount is zero, enter "0".

Castle, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $26,000 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 20 percent lower. The firm is considering a debt issue of $150,000 with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 15,000 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.)

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.)

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.)

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.)

Suppose a statistician built a multiple regression model for predicting the total number of runs scored by a baseball team during a season. Using data for n=200 samples, the results below were obtained. Complete parts a through d.

a. Write the least squares prediction equation for y= total number of runs scored by a team in a season.

y=(3.88)+(0.37)X1+(0.51)X2+(0.74) X3+(1.17).X4+(1.44) X5. CORRECT ANSWERS (Type integers or decimals.)

b. Interpret, practically, β0 and β1 in the model. Which statement below best interprets β0?

A. For a change of β0 in any variable, the runs scored increases by 1.

B. For a decrease of 1 in any variable, the runs scored changes by β0.

C. For an increase of 1 in any variable, the runs scored changes by β0.

D. For a change of β0 in any variable, the runs scored decreases by 1.

E. This parameter does not have a practical interpretation. Your answer is correct.

Which statement below best interprets β1?

A. For an increase of 1 in the number of walks, the runs scored changes by β1.

B. For a change of β1 in the number of walks, the runs scored increases by 1.

C. For a decrease of 1 in the number of walks, the runs scored changes by β1.

D. For a change of β1in the number of walks, the runs scored decreases by 1.

E. This parameter does not have a practical interpretation.

In the AD-SRAS-LRAS model, what happens to the price level and the unemployment level in the short-run when there is an increase in consumption spending (C)?

Group of answer choices

a.Price level increases and unemployment level increases.

b.Price level decreases and unemployment level falls.

c.Price level increases and unemployment level falls.

d.Price level decreases and unemployment level increases.

Output gap is the difference between:

Group of answer choices

a.Nominal Output and Short-Run Output

b.Real GDP and Nominal GDP

c.Actual output and Potential Output

d.Final output and intermediate output

The unemployment level associated with the potential level of output is called the:

Group of answer choices

a.Seasonal Unemployment.

b.Structural Unemployment

c.Cyclical Unemployment

d.The Natural Level of Unemployment

The Sticky Price Theory states that:

Group of answer choices

a.SRAS is upward sloping because some firms are slow to respond to overall price level changes in the economy.

b.SRAS is downward sloping because some firms are slow to respond to overall price level changes in the economy.

c.LRAS is vertical because some firms are slow to respond to overall price level changes in the economy.

d.LRAS is downward sloping because some firms are slow to respond to overall price level changes in the economy.

The primary difference between Real and Nominal Wage is that:

Group of answer choices

a.Real Wage does not account for inflation, whereas Nominal Wage does.

b.Real Wage does not reflect the purchasing power, but Nominal wage does.

c.Real Wage is reported, while Nominal Wage is not.

d.Real wage accounts for inflation, whereas Nominal Wage does not.

1. Which Herfindahl–Hirschman index is MOST likely to indicate a perfectly competitive market?

Select one:

a. 100

b. 100,000

c. 1,800

d. 10,000

2. To calculate the Herfindahl–Hirschman index (HHI), one must _____ market share(s) of _____ in the industry.

Select one:

a. sum the squared; all of the firms

b. divide the; the largest firm by the sum of the four largest firms

c. sum the; all of the firms

d. sum the; the four largest firms

3. Table: Demand Schedule of Gadgets

Reference: Ref 14-1 Table: Demand Schedule of Gadgets

(Table: Demand Schedule of Gadgets) Use Table: Demand Schedule of Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets with no marginal cost or fixed cost. Suppose that these two producers have formed a cartel, agreed to split production of output evenly, and are maximizing total industry profits. Total industry output would be _____ gadgets.

Select one:

a. 50

b. 500

c. 10

d. 5

4.

Collusive agreements are typically difficult for cartels to maintain because each firm can increase profits by:

Select one:

a. producing more than the quantity that maximizes joint profits.

b. advertising less than will maximize joint cartel profits.

c. charging more than the price that maximizes joint cartel profits.

d. producing less than the quantity that maximizes joint profits.


5.

Figure: Monopoly Profits in Duopoly

Reference: Ref 14-2 Figure: Monopoly Profits in Duopoly

(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly. The efficient solution in the figure is found where price is _____ and quantity is _____.

Select one:

a. P₁; Q₄

b. P₂; Q₁

c. P₂; Q₂

d. P₃; Q₁

6.

An extreme case of oligopoly in which firms collude to raise joint profits is known as a:

Select one:

a. dominant producer.

b. duopoly.

c. price war.

d. cartel.

7.

In oligopoly, a firm must realize that:

Select one:

a. what it does has no effect on the other firms in the industry.

b. another major firm may dominate choices in the industry, and it will have to behave accordingly.

c. collusion was made legal in 2004.

d. its behavior will be ignored by other firms in the industry.


8.

In an oligopoly:

Select one:

a. there are many sellers.

b. firms recognize their interdependence.

c. there are no barriers to entry.

d. total surplus is maximized.

9.

Figure: Prisoners' Dilemma for Thelma and Louise

Reference: Ref 14-6 Figure: Prisoners' Dilemma for Thelma and Louise

(Figure: Prisoners' Dilemma for Thelma and Louise) Use Figure: Prisoners' Dilemma for Thelma and Louise. Thelma and Louise are arrested and jailed for murder. Given the payoff matrix in the figure, the Nash equilibrium behavior is for Thelma _____ and Louise _____.

Select one:

a. to confess; to confess

b. not to confess; not to confess

c. to confess; not to confess

d. not to confess; to confess

10.

As a New York business owner who does a lot of flying, you are keenly aware of even small changes in airfare from New York to Chicago. You have flown this route long enough to know that each airline is essentially a perfect substitute for the others. You notice that every time the largest airline changes the price, smaller airlines follow, but the smaller airlines are always priced slightly below the fare of the largest airline. This industry could BEST be described as one with:

Select one:

a. cartel behavior.

b. price leadership.

c. nonprice competition.

d. price wars.

using Linux please fill in the blanks :

telnos files:

The file books contains the following information:

issue the command:

        sort -n -t: +4 books

What is the result? ________________________________________________________________________________________________________________________________________________

Try another sort using the books file. Sort on the price field in reverse. Type in the following:

        sort -nr -t: +5 books

What was the result? _______________________________________________________________________________________________________________________________________________

Type in:

        sort -t: +0 +1 books > newbooks

What does the sorted file look like now?

__________________________________________________________________________________________________________________________________________________________________

. Issue the command:

               grep -n H telnos

What was printed? ________________________________________________________________________________________________________________________________________________________________________________________________________________________

Issue the command:

              grep -ni m telnos

What was printed this time?___________________________________________________________________________________________________________________________________________________________________________________________________________________

1. What components of final expenditure (C, I, G, NX) if any, would the following transactions change? (provide numerical values for parts g and k)

a. A U.S. family buys a new refrigerator made in Illinois

b. A U.S. family buys a new refrigerator made in China

c. You buy a new house in Chicago

d. You buy a pizza from Dominos

e. California repaves U.S. highway one.

f. GM sells a car from its inventory of cars

g. You buy a house built in 2000. The house cost $120,000 in 2000, your purchase price is $200,000, of which $10,000 goes to a real estate agent as sales commission.

h. U.S. government spending for unemployment benefits increases because of increasing unemployment.

i. A parent pays $1,000 for daycare for their child.

j. Ben and Jerrys buy milk to make ice cream.

k. You buy $20 of yarn at a craft store. You use the yarn to make a sweater, which would cost $80 if sold at Target.

l. You pay rent for an apartment in a building that was built in 2002.

m. Fifth third bank lends a manufacturer $1,000,000.

n. The City of Chicago purchases new police cars

o. Wildfires destroy homes in California (do not count the cost of fighting the fires).

1. What components of final expenditure (C, I, G, NX) if any, would the following transactions change? (provide numerical values for parts g and k)

a. A U.S. family buys a new refrigerator made in Illinois

b. A U.S. family buys a new refrigerator made in China

c. You buy a new house in Chicago

d. You buy a pizza from Dominos

e. California repaves U.S. highway one.

f. GM sells a car from its inventory of cars

g. You buy a house built in 2000. The house cost $120,000 in 2000, your purchase price is $200,000, of which $10,000 goes to a real estate agent as sales commission.

h. U.S. government spending for unemployment benefits increases because of increasing unemployment.

i. A parent pays $1,000 for daycare for their child.

j. Ben and Jerrys buy milk to make ice cream.

k. You buy $20 of yarn at a craft store. You use the yarn to make a sweater, which would cost $80 if sold at Target.

l. You pay rent for an apartment in a building that was built in 2002.

m. Fifth third bank lends a manufacturer $1,000,000.

n. The City of Chicago purchases new police cars

o. Wildfires destroy homes in California (do not count the cost of fighting the fires).

How and why has the financial service sector, especially depository institutions changed in the last 15 years? What are the benefits and costs of the changes including the impact on structure, performance and conduct of the industry?