to restore growth in revenue and profitability the firm acquired competitor Jos.A.Bank in late 2014 for $1.8 billion after a heated bidding war.The final bid of $65 in cash for each Jos.A.Bank 's share represented a 56% premium to the closing price in early october 2013.The combined company had annual revenue of $3.5 billion and projected annual savings of $100-$150 million consisting of lower overhead,more efficient marketing and improved customer service.

How does the size of the premium paid for Jos.A. Bank affect the pace and extent of postmerger integration?

Answer each question, pls TYPE answers showing the calculation processes, not taking a picture of handwriting.

1. Using the Black-Scholes options pricing model. Calculate the call option premium on a stock with an exercise price of $105, which expires in 90 days. The stock is currently trading for $100 and the monthly standard deviation on the stock return is 3%. The annual risk-free rate is 4% per year.

2. Explain why it may be better (add value) for a firm to implement risk management strategies rather than have shareholders do it for themselves.

Consider the Romer Model (1990). Suppose the productivity parameter in the R&D sector is 0.0002 and the stock of human capital in the economy is 2000, of which 1500 is allocated to the manufacturing of the final goods. In the final goods production sector, output elasticity with respect to labor is 0.3 and output elasticity with respect to human capital is 0.4. Answer the following questions:

a. Find the equilibrium growth rate.

b. Find the equilibrium interest rate.

c. If the current level of technology is 100 and the price of a new design for intermediate good is 1000, find the wage of human capital.

Chelonia ltd manufacture small robot toys. It plans to introduce two products, speedie and spunkie. It is anticipated that the product mix will be 40%speedie and 60%spunkie. One unit of speedie will be sold for $100,with variable cost equals to $40.for a unit of spunkie , the selling price will be $120 and the variable cost is $70.the fixed cost for producing the two products is $108000.

A.what is the break even point in units for each product?

B.the company plans to include a safety margin of $20000 before tax .assuming a tax rate of 30% what should be the budgeted sales in units?

Assume two (2) firms in an industry producing a homogeneous product. Given the market demand as P = 100 -(q1+ q2), where q1 and q2 are output levels of firm 1 and firm 2 respectively; and the cost functions are as follows: C1= 30q1,and C2= 20q2:

i) Determine each firm’s profit-maximizing level of output (q1 and q2).Be sure to state each firm’s ‘reaction function’.(Cournot Solution!)

ii)How much profit does each firm make?

iii) What is the (total) industry output (Q)and market price (P)?

Suppose that an electricity provider would build a power plant at the cost of $50 million. Once the plant is built, it would cost the plant $0.07 per kilowatt hour of electricity that it produces. Over its lifetime, the plant is expected to generate 100 million kilowatt hours. Suppose that the regulators believe that the investors who put up capital to build the plant should be able to recoup its investment plus a 300% return throughout the life of the plant. Calculate the price per kilowatt hour that the regulators should allow the plant operators should charge.

The following are the transactions for the month of July.

Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)

The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 53 $ 10 July 13 Purchase 265 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 218 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)

Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000 Net income $ 11,000 $ 32,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable.