10. If a country has rising incomes and people are buying more imports, what do you expect to happen to the value of that country's currency in comparison with other countries in which incomes are not rising as fast? Explain in your answer how you reached this conclusion by considering demand and/or supply of the currency.

11. Given the following information, what is the price elasticity of demand between $10 and $20 if these are the reservation prices people have for this good.

$5 . $5 . $10 $10 . $10 $10 . $15 . $15 . $20 $20

12.

Given the following information for three goods, which two are substitutes and which two are complements. You don't need to calculate the cross price elasticities here but which will be negative and which will be positive. Explain how you reached these conclusions.

Sun Minerals, Inc., is considering issuing additional long-term debt to finance an expansion. Currently, the company has $52 million in 8 percent debt outstanding. Its after-tax net income is $12 million, and the company is in the 40 percent tax bracket. The company is required by the debt holders to maintain its times interest earned ratio at 3.8 or greater. Do not round intermediate calculations.

What is the present coverage (times interest earned) ratio? Round your answer to one decimal place. 5.8 times

How much additional 8 percent debt can the company issue now and maintain its times interest earned ratio at 3.8? (Assume for this calculation that earnings before interest and taxes remain at their present level.) Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ 13.79 million

If the interest rate on additional debt is 10 percent, how much unused “debt capacity” does the company have? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ .63 million

1.

A monopolist has average cost AC = .2Q - 4 + 100/Q and marginal cost MC = .4Q - 4. Market demand is Q = 44 - P, implying that the firm’s marginal revenue is MR = 44 - 2Q. Its profit-maximizing output is

a. 92

b. 46

c. 40

d. 20

2.

Consider the same monopoly situation as in the previous question. The firm’s profit will be

a. 760

b. 660

c. 830

d. 380

The following table repeats the annual total returns on the MSCI Germany Index previously given and also gives the annual total returns on the JP Morgan Germany five- to seven-year government bond index (JPM 5–7 Year GBI, for short). During the period given in the table, the International Monetary Fund Germany Money Market Index (IMF Germany MMI, for short) had a mean annual total return of 4.33 percent. Use that information and the information in the table to answer the following questions.

a) Using the IMF Germany MMI as a proxy for the risk-free return, calculate the Sharpe ratio for:

(i) the 60/40 equity/bond portfolio described in Problem 12.

(ii) the MSCI Germany Index.

(iii) the JPM Germany 5–7 Year GBI.

b) Contrast the risk-adjusted performance of the 60/40 equity/bond portfolio, the MSCI Germany Index, and the JPM Germany 5–7 Year GBI, as measured by the Sharpe ratio.

An investigator analyzed the leading digits from 787 checks issued by seven suspect companies. The frequencies were found to be 4​, 11​, 2​, 72​, 371​, 281​, 7​, 16​, and 23​, and those digits correspond to the leading digits of​ 1, 2,​ 3, 4,​ 5, 6,​ 7, 8, and​ 9, respectively. If the observed frequencies are substantially different from the frequencies expected with​ Benford's law shown​ below, the check amounts appear to result from fraud. Use a 0.025 significance level to test for​ goodness-of-fit with​ Benford's law. Does it appear that the checks are the result of​ fraud?

Leading Digit:      1    2    3 4 5 6    7 8 9
Actual Frequency:      4 11    2    72    371 281 7    16    23

Benford's Law:      30.1% 17.6% 12.5%    9.7%    7.9% ​ 6.7%    ​5.8% ​ 5.1%    ​4.6%

Determine the null and alternative hypotheses.

Ho​: (1)_________________    H1​: (2)_________________

Calculate the test​ statistic, χ2.

χ2 = _______________​

(Round to three decimal places as​ needed.)

Calculate the​ P-value.

P-value = _______________​

(Round to four decimal places as​ needed.)

Develop a marketing plan to increase ticket sales for each of these two shows as compared with the ticket sales from last year. With your target markets identified for The shows are the Wildcats and the Wonder Dogs. Similar to shows that did not do well on the Hush Puppies reunion concert that was intended to attract an audience of older adults, ages 50 to 60. The Center also failed to make as much as was anticipated on the Bouncing Bunnies family show that was targeted toward preschool and early elementary school students. The advertising campaigns for each show consisted primarily of print and radio ads as well as outdoor billboards. Describe the specific advertising, promotions, and marketing tools you will use to reach the target markets for each of these two shows and effectively increase tickets sales over last year’s results.

1. Describe the specific marketing strategies and marketing media you would use for each of these two shows. Explain your rationale and frequency for each.

2. Do the following for each show-

a. Design a print marketing advertisement.

b. Write a 30-second script to be used for a radio spot.

c. Design a creative social media promotion (that goes beyond just announcing the event).

3. Research current advertising rates and establish a marketing budget for each event.

Variance and standard deviation

Hull​ Consultants, a famous think tank in the​ Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 13%​, the probability of a stable growth economy is 20​%, the probability of a stagnant economy is 54​%, and the probability of a recession is 13​%.

Calculate the variance and the standard deviation of the three​ investments: stock, corporate​ bond, and government bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are​ correct, which investment would you​ choose, considering both risk and​ return?  

​Hint: Make sure to round all intermediate calculations to at least seven​ (7) decimal places. The input​ instructions, phrases in parenthesis after each answer​ box, only apply for the answers you will type.

What is the variance of the stock​ investment?

%

​(Round to six decimal​ places.)

What is the standard deviation of the stock​ investment?

%

​(Round to two decimal​ places.)

What is the variance of the corporate bond​ investment?

%

​(Round to six decimal​ places.)

What is the standard deviation of the corporate bond​ investment?

%

​(Round to two decimal​ places.)

What is the variance of the government bond​ investment?

​%

​(Round to six decimal​ places.)

What is the standard deviation of the government bond​ investment?

%

​(Round to two decimal​ places.)

If the estimates for both the probabilities of the economy and the returns in each state of the economy are​ correct, which investment would you​ choose, considering both risk and​ return?  ​(Select the best​ response.)

A.

The corporate bond would be the best choice because it has the highest expected return and the lowest risk.

B.

The stock investment would be the best choice because it has the highest volatility and therefore the best chance of a high return.

C.

The government bond would be the best choice because it has the lowest risk.

D.

There is not enough information to make this decision.

Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 10%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.)

Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 10%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.)

Hi all,

Please list all steps!!

Hayden Inc. has a number of copiers that were bought four years ago for $26,000. Currently maintenance costs $2,600 a year, but the maintenance agreement expires at the end of two years and thereafter the annual maintenance charge will rise to $8,600. The machines have a current resale value of $8,600, but at the end of year 2 their value will have fallen to $4,100. By the end of year 6 the machines will be valueless and would be scrapped.

Hayden is considering replacing the copiers with new machines that would do essentially the same job. These machines cost $31,000, and the company can take out an eight-year maintenance contract for $1,400 a year. The machines will have no value by the end of the eight years and will be scrapped.

Both machines are depreciated by using seven-year MACRS, and the tax rate is 40%. Assume for simplicity that the inflation rate is zero. The real cost of capital is 9%.

a. Calculate the equivalent annual cost, if the copiers are: (i) replaced now, (ii) replaced two years from now, or (iii) replaced six years from now. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.)

b. When should Hayden replace its copiers?