US ag and food markets are often heavily influenced by seasonality and holiday demand. Many (but not all) fresh pumpkins are produced for Halloween, and farmers time most of their production so that their pumpkins are ripe and ready to pick within 10 days before Oct. 31. Draw two graphs to show how Demand and Supply curves shift over time – the first graph is for Demand (D) and Supply (S) seven days before 31, and the second graph is for Demand and Supply three days after Oct. 31. Briefly explain any changes in the D and S curves, as you have drawn them.

There are a whole zoo of subatomic particles that have very short lifetimes before decaying. The pion, also called the ? meson, has a proper mean lifetime of 2.6 × 10?8 s.

(a) Explain what is meant by the “proper time.” What frame will measure the proper time?

(b) If a beam of pions has a speed of 0.9c, how far will they travel (on average, decay is a random statistical process) in the laboratory frame before they decay?

(c) If the number of pions in a sample is given by A0 e ?t/? , where ? is the lifetime and A0 is the number of pions you started with, what fraction of the pions are left after traveling 20 m in the laboratory frame?

Johnson, Inc. projects sales for next year will be 55,000 units if the sales price is $27.50. At this level, unit fixed costs will be $8.30 while total variable costs will be $693,000. The vice president of marketing advises management to reduce sales price to $26.00 and to undertake a national advertising campaign costing $12,000.

1. What is the breakeven point for the company in terms of dollars and units before giving effect to the vice president's plan?
2. What is the breakeven point in units after giving effect to the plan?
3. The vice president believes that his plan will result in a before tax earnings of $56,000. How many units must be sold to reach this earnings level?

An 88-kg fireman slides 5.1 m down a fire pole. He holds the pole, which exerts a 540-N steady resistive force on the fireman. At the bottom he slows to a stop in 0.43 m by bending his knees.

A) Determine the acceleration of the fireman while sliding down the pole.

B) Determine the velocity of the fireman just before reaching the grou

C) Determine the velocity of the fireman just before reaching the ground.

D) Determine the time it takes for the fireman to reach the ground.

E) Determine the acceleration of the fireman while stopping.

F) Determine the time it takes for the fireman to stop after reaching the ground.

Consider a world with no taxes and perfect capital markets. The WW Corporation is currently all equity financed. Its earnings are $10M per year and will stay that way in perpetuity. The value of the firm is $120M. The firm is considering issuing risk-free debt worth $50M and maturing in 10 years at an interest rate of 6% and using it to repurchase $50M of equity. Ivan owns $1.5M of the stock of WW before the refinancing. By how much would his total lending or borrowing change when the firm refinances assuming he wants the same returns both before and after?

a. 1.5M b. 0.375M c. 0.875M d. 0.625M

Section 2: Capital Structure

1. An unlevered company operates in perfect markets and has earnings before interest and taxes (EBIT) of $3m. Assume that the required return on assets for firms in this industry is 10%. The firm issues $15m worth of debt with a required return of 6% and uses the proceeds to repurchase outstanding stock. There are no corporate or personal taxes.
   a) What is the market value of the firm and required return of this firm’s stock before the repurchase transaction, according to M & M Proposition I?
   b) What is the market value of the firm and the required return and the required return on the firms remaining stock after the repurchase transaction, according to M & M Proposition II?

At a flat gold course, a golfer hits a golf from the ground. The velocity of the bal immediely after being hit is 18.5 m/s at a derection of 38.0 degrees above the orizontal. The ball reaches the highest point of its projectile motion, and later, during the downward part of its motion the ball hits a branch of a tree. The branch is 3.00 m above the ground.

A) How much time elapses between the golfer hitting the ball and the ball hitting the branch?

B) How far does the ball travel horizontally before it hits the branch

C0 what is the velocity vector of the ball just before it hits the branch ?

14. An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained. (Please show the calculation process)

Referring to above table, what is the probability that a randomly selected student did well on the midterm and went bar hopping the weekend before the midterm?

15. What is the probability that a randomly selected student did well on the midterm or went bar hopping the weekend before the midterm?

16. Referring to above table, the events "Did Well on Midterm" and "Studying for Exam" are

1. statistically dependent.
2. statistically independent.