. Verbal Communications, Inc., has 14,000 shares of stock outstanding with a par value of $1 per share and a market value of $46 per share. The firm just announced a 100 percent stock dividend. What is the market value per share after the dividend?

2. Della's Pool Halls has 12,000 shares of stock outstanding with a par value of $1 per share and a market price of $39 a share. The firm just announced a 4-for-3 stock split. How many shares of stock will be outstanding after the split?

3. Alfonzo's Italian House has 25,000 shares of stock outstanding with a par value of $1 per share and a market price of $36 a share. The firm just announced a 5-for-3 stock split. What will the market price per share be after the split?

4. Plyler Cabinets declared a dividend of $1.20 a share on May 15 to holders of record on Monday, June 1. The dividend is payable on June 15. Sara purchased 500 shares of Plyler Cabinets stock on Friday, May 29. How much dividend income will she receive on June 15 from Plyler Cabinets?

The ICAN (Index of Companies with Animal Names) is a price-weighted stock index,
comprised of the five companies shown below. None of the companies pay
dividends.

The ICAN index on January 1, 2022 was 1784.10. On January 1, 2023, the ICAN
index rose to 2309.17. The ICAN rate of return was therefore 29.43% over this
period.

a) Calculate the ICAN divisor.

b) Suppose you purchased 500 shares of Toucan Technology, 400 shares of Manatee
Motors, 300 shares on Iguana Industries, 200 shares of Koala Cola, and 100 shares
of Penguin Pharmaceuticals. All purchases were made on January 1, 2022. Suppose
you then sold all shares on January 1, 2023. What was your portfolio rate of return
over this period?

c) Does your rate of return equal the ICAN rate of return? Why or why not. Explain
carefully

Please show work/equations not the calculator version

Hi, I need your answer this question below.Br/H

a) A market has the following demand function: ?(?) = 100 − 5? where y is total sold quantity of the good on the market and ?(?) is the price for which it sells for. What is the price elasticity of demand at y=10? (4 points)

b) True or false? A Nash equilibrium is always a subgame perfect Nash equilibrium. Explain! (3 points)

c) Explain what third-degree price discrimination is and under which circumstances it is likely that it can occur.

d) Assume that there are good spaceships (plums) and bad spaceships (lemons) in the market for used spaceships. The sellers know what they are selling but the buyers do not know what they are buying. Explain under what circumstances the plums might disappear from the market and suggest one way of dealing with this problem?

e) State the Coase theorem and explain the role of transaction costs.

j) A firm produces widgets according to the production function: f(k,L) = k^1/3L where k is capital and L. is labour. Does the firm’s production function exhibit constant- decreasing- or increasing returns to scale? Explain your answer!

(CMA adapted)

*P9-12 (LO7) (Conventional and Dollar-Value LIFO Retail) As of January 1, 2017, Aristotle Inc. adopted the retail method of accounting for its merchandise inventory.

To prepare the store’s financial statements at June 30, 2017, you obtain the following data.

Instructions

(a) Prepare a schedule to compute Aristotle’s June 30, 2017, inventory under the conventional retail method of accounting for inventories.

(b) Without prejudice to your solution to part (a), assume that you computed the June 30, 2017, inventory to be $59,400 at retail and the ratio of cost to retail to be 70%. The general price level has increased from 100 at January 1, 2017, to 108 at June 30, 2017. Prepare a schedule to compute the June 30, 2017, inventory at the June 30 price level under the dollarvalue LIFO retail method.

Once you have determined the break-even point for your product, you can use it to examine the effects of increasing or decreasing the role of fixed costs in your operating structure. The extent to which a business uses fixed costs (compared with variable costs) in its operations is referred to as operating leverage. The greater the use of operating leverage (fixed costs, often associated with fixed assets), the larger the increase in profit as sales rise and the larger the increase in loss as sales fall. The higher the break-even quantity for your product, the greater your business risk.

Let x be the number of units and p be the price of the item a company produces.

For this company, revenue is R ( x ) = p x and cost is C ( x ) = 100 x + 10000. Use these functions to support your conclusions to the following:

Suppose the company has a monopoly for this product so that it can set the price as it chooses. What are the benefits and the danger to the company of pricing its product at $1,100 per unit?

If the company has a monopoly for this product so that it can set the price, what are the benefits and the danger to the company of pricing its product at $101 per unit?

Suppose that a firm faces the demand curve, P = 100 - 3Q, where P denotes price in dollars and Q denotes total unit sales. The cost equation is TC = 200 + 22Q.

a. Determine the firm’s profit-maximizing output and price.   

b. Suppose that there is a change in the production process so that the cost equation becomes TC = 80 + 12Q + Q².   Determine the resulting effect on the firm’s output:

c. Using the two different cost structures from part a and b, compute Total Cost and Marginal Cost at the quantity value of 12.   

Cost structure a: TC =

                           MC =

Cost structure b: TC =

                           MC =

d. Do the values computed in part c support the difference you found in the quantity values (compared output in part a and part b)?

e. Suppose that the firm sells in a competitive market and faces the fixed price:    P = $56. State the Total Revenue (TR) functions, and using the cost function in part b, find the firm’s new profit maximizing (optimal) quantity.

Please provide step by step ( i am trying to figure out how to do it)

11.Which of the following is not a characteristic of put and call options?

a.         They are contracts to buy or sell 100 shares of common stock.

b.         There is always a specified price.

c.         There is always a specified time period.

d.         All of the above are characteristics.

12.A major disadvantage of using call options to hedge a short position is

a.         hedging increases the risk of loss on the short sale

b.         the option premium and commissions reduce profit potential

c.         the price of the stock may go up

d.         none of the above

13.On June 30. 2003 the October ABC 40 call option sold for 2 and 1/2 whi1e the underlying stock sold for 38 and 3/4. Which of the following statements about the above ABC can option is false?

a.         option premium was 2 and 1/2

b.         striking price is 40

c.         the option expires on Saturday following the third Friday in October 20003

d.         the speculative premium was 2 and 1/2

e.         none of the above

21. Each of the following is a bullish strategy except

a.         a long call

b.         a short put

c.         a short stock

d.         both a and b

e.         none of the above

Problem 10-08

A stock is currently trading for $30. The company has a price–earnings multiple of 10. There are 100 million shares outstanding. Your model indicates that the stock is actually worth $25. The company announces that it will use $310 million to repurchase shares.

1. After the repurchase, what is the value of the stock, according to your model? Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

2. After the repurchase, what is the actual price–earnings multiple of the stock? Do not round intermediate calculations. Round your answer to two decimal places.

3. If the company had used the $310 million to pay a cash dividend instead of doing a repurchase, how would the value of the stock have changed, according to your model? Do not round intermediate calculations. Round your answer to the nearest cent.

   The market value of the stock is now $   .

4. If the company had used the $310 million to pay a cash dividend instead of doing a repurchase, what would be the actual price–earnings multiple after the dividend? Do not round intermediate calculations. Round your answer to two decimal places.

Exercise 5-17 Break-Even and Target Profit Analysis [LO5-4, LO5-5, LO5-6]

Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove, and fixed expenses associated with the stove total $129,000 per month.

Required:

1. What is the break-even point in unit sales and in dollar sales?

2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.)

3. At present, the company is selling 11,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes.

4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $72,000 per month?

PART I

Demand and supply of office visits with cardiologists in Fairfax (market period: 1 week)

Assume no insurance

Price                           Demand                                  Supply

140                              1000                                        1375                                       

130                              1100                                        1350

120                              1200                                        1325

110                              1300                                        1300

100                              1400                                        1275

90                              1500                                        1250

80                              1600                                        1225

70                              1700                                        1200

60                              1800                                        1175

50                              1900                                        1150   

1. Graph demand (D1) and supply (S1) and determine the market price/quantity equilibrium. (use the graph at the end of the assignment, or if you use another be sure to use one with a grid so you can plot accurately. Be sure to label all demand and supply curves).

2. Over the next 5 years due to population growth and an aging population, demand for cardiology office visits increases by 25 percent. The supply of cardiologists increases by 10 percent as medical schools expand a little and a small number of additional doctors from foreign countries are certified to practice in the U.S. Graph the new demand curve (D2) and the new supply curve (S2). What is the new price/quantity equilibrium?