An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Data is provided below:

Compile a spreadsheet for the data and determine the predicted number of units sold if the watch is sold on a holiday for $200 while $150 is spent on advertising.

At a used dealership, let X be an independent variable representing the age in years of a motorcycle and Y be the dependent variable representing the selling price of used motorcycle. The data is now given to you. X = {5, 10, 12, 14, 15} Y = {500, 400, 300, 200, 100}

1) What is the value for S^2?

2) What is the value for s?

3) Construct a 95% confidence interval for B1. what is the upper bound and lower bound?

4) does the data provide sufficient evidence to indicate that X contributes to the prediction of Y?

On January 1, you enter a long gold futures contract at the settle price of 1250/oz. Each gold contract is for 100 ounces. The minimum margin requirement is $5500, and the maintenance margin requirement is $4500. Given the futures settle prices below, what amount of margin is in your account at the market close on January 4th. Assume you keep the contract active through the four days and do not take any excess margin out of the account. January 2: 1233/oz January 3: 1240/oz January 4: 1262/oz

2.) Fill in the following table: Show work if possible

b.) Now suppose this firm is in a perfectly competitive industry. The market price of the output is $25. How many units of output will this firm choose to produce in the short run? What is the profit at that level of output?

7. Use the following information to work Problems (a) and (b). Show all your workings. Suppose that in response to huge job losses in the New Zealand textile industry, the government of New Zealand imposes a tariff of 100 percent on imports of textiles from China.

1. Explain how the tariff on textiles will change the price that New Zealand pays for textiles, the number of textiles imported, and the quantity of textiles produced in New Zealand.
2. Explain how the New Zealand and Chinese gains from trade will change. Who in New Zealand will lose and who will gain?

A Manufacturer of flash drives has a profit function of P= t - q²where t is the price charged for a flash drive and q² is the cost of producing a drive whose capacity is q gigabytes. A consumer of type 'x' has a utility function of u = xq-t, where 'x' takes on the value of 8 for H-type consumers or 6 for L-type consumers. There are 100 consumers of each type. A consumer gets zero utility if she does not buy.

Calculate the optimal SEPARATING CONTRACT (q_L,t_L) and (q_H,t_H) under ASYMMETRIC INFORMATION

Suppose that the world price for a good is 50, and the domestic demand and supply curves are given by the following equations:

D^X: P^D=100-4Q^D S^X: P^S=10+6Q^S

1. How much is consumed? How much is produced domestically? What are the values of producer and consumer surplus?
2. If a 5% import tariff is imposed, by how much do consumption and domestic production change? What is the change in consumer and producer surplus? How much revenue does the government earn from the tariff?
3. What is the net national cost of the tariff? Show your results through a graphical representation.

Part A: You make a cash purchase of 100 shares of a stock at $55 per share. You hold the stock for one year, during which dividends of $5 a share are distributed. Commissions are 2 percent of the value of a purchase or sale.

Assume all of the same conditions of the transaction as in part a (i.e. stock purchase price, dividends, commission) but now you make the purchase using margin. If the Margin Requirement is 60% and the interest rate on borrowed funds is 10%, what is your percentage earned at the following prices:

1. $60

2. $70

A japanese comapny has a bond outstanding that sells for 91.53 percent of its 100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

Settlement date = 1/1/2000

Maturity date = 1/1/2016

Annual coupon rate = 3.4%

Coupons per year = 1

Face value (% of par) = 100

Bond price (% of par) = 91.530

Face value = 100,000

Please answer in exel format: =Yeild(settlement, matruity, rate, pr, redemption, frequency)

DA Inc. is currently an all-equity firm, with a value of $500. It has 25 shares outstanding. The EBIT is 153.85 per year forever. The tax rate is 35%. The payout is 100%. It is planning to do a capital restructuring by issuing $200 of perpetual debt, costing 10% and use the proceeds to repurchase stock.
- What is the cost of unlevered equity?
- How many shares will it repurchase? At what price?
- What is the cost of levered equity? Confirm your answer by both computing the PV of all cash flows to shareholders at levered equity cost and using MMII.