Questions
he following table shows​ William's utility from consuming slices of pizzapizza and cans of CokeCoke. Slices...

he following table shows​ William's utility from consuming slices of

pizzapizza

and cans of

CokeCoke.

Slices of

PizzaPizza

Total Utility

from PizzaPizza

Marginal Utility

from Last Slice

Cans of

CokeCoke

Total Utility

from CokeCoke

Marginal Utility

from Last Can

0

0

​-

0

​-

​-

1

36

36

1

30

30

2

66

30

2

55

25

3

90

24

3

75

20

4

108

18

4

90

15

5

120

12

5

100

10

6

126

6

6

105

5

Suppose William has

​$3.30

per week to spend on

pizzapizza

and

CokeCoke.

The price of a slice of

pizzapizza

is

​$0.60

and the price of a can of

CokeCoke

is

​$0.50

If William wants to maximize his​ utility, he should buy

how many

​slice(s) of

pizza?

and

how many

​can(s) of

Coke?

In: Economics

John Wilson buys 150 shares of ABM on 1 January 2012 at a price of $156.30...

John Wilson buys 150 shares of ABM on 1 January 2012 at a price of $156.30 per share. A dividend of $10 per share is paid on 1 January 2013. Assume that this dividend is not reinvested. Also on 1 January 2013, Wilson sells 100 shares at a price of $165 per share. On 1 January 2014, he collects a dividend of $15 per share (on 50 shares) and sells his remaining 50 shares at $170 per share. 1. Write the formula to calculate the money-weighted rate of return on Wilson's portfolio. 2. Using any method, compute the money-weighted rate of return. 3. Calculate the time-weighted rate of return on Wilson's portfolio. 4. Describe a set of circumstances for which the money-weighted rate of return is an appropriate return measure for Wilson's portfolio. 5. Describe a set of circumstances for which the time-weighted rate of return is an appropriate return measure for Wilson's portfolio.

In: Finance

Use the following data to explore the risk-return relation and the concept of beta for Apple...

Use the following data to explore the risk-return relation and the concept of beta for Apple stock, Alphabet (Google) stock, and the S&P 500 market index:

Year

Apple Stock Price

Alphabet Stock Price

S&P 500 Market Index

2017

$174.09

$1,072.01

2,601.42

2016

$115.82

$807.80

2,238.83

2015

$105.26             

$765.84

2,043.94

2014

$113.99

$521.51

2,058.90

2013

$80.01

$559.76

1,848.36

2012

$72.80

$358.17

1,426.19

Market risk premium: RPM = 4.01%
Risk-free rate: rRF = 1.30%
  1. Calculate the portfolio beta of the four-stock portfolio and the required return on the portfolio (9 Points) ***Please Provide the Excel Functions
Beta Portfolio Weight
Apple 25%
Stock A 0.77 15%
Stock B 0.99 40%
Stock C 1.42 20%
100%
Portfolio Beta =
Risk-free rate Market Risk Premium Portfolio Beta Required Return on Portfolio

In: Finance

Travel On Inc. sells luggage. They sell a duffle bag, a carry-on suitcase and a deluxe...

Travel On Inc. sells luggage. They sell a duffle bag, a carry-on suitcase and a deluxe suitcase. The price and variable cost for each type of luggage is listed below.

Price

Variable Cost

Duffle bag

$100

$ 25

Carry-on

180

40

Deluxe

300

120

?

The total fixed costs for Travel On Inc. equals $60,000. For every 8 duffle bags Travel On Inc sells it sells 3 carry-on suitcases and 1 deluxe suitcase.

Required: Show your calculations!
A.) Calculate the package contribution margin.

B.) Calculate the break-even point in units for duffle bags, carry-on suitcases and deluxe suitcases.

C.) If Travel On Inc. has a target income for the coming year of $300,000, how many packages will company have to sell?

D.) Based on your answer in Part C, prepare a contribution margin income statement for the coming year.

E.) What is the company’s margin of safety in packages?

In: Accounting

1.A. A company is projected to generate free cash flows of $800 million per year for...

1.A. A company is projected to generate free cash flows of $800 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.5% rate in perpetuity. The company's cost of capital is 12.0%. The company owes $100 million to lenders and has $90 million in cash. If it has 150 million shares outstanding, what is your estimate for its stock price? Round to one decimal place

1.B. A company is projected to generate free cash flows of $500 million next year, growing at a 4.0% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 3.0%. The company's cost of capital is 9.0%. The company owes $300 million to lenders and has $20 million in cash. If it has 200 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.

In: Finance

The Greensboro Performing Arts Center (GPAC) has a total capacity of 8,400 seats: 2,400 center seats,...

The Greensboro Performing Arts Center (GPAC) has a total capacity of 8,400 seats: 2,400 center seats, 2,900 side seats, and 3,100 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows:

Percentage Occupied
Ticket Price Budgeted Seats Actual Seats
Center $ 110 90 % 95 %
Side 100 80 85
Balcony 90 85 75

The actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance.

Required:

Compute the following for the show:

1. The budgeted and actual sales mix percentages for different types of seats.

2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin.

3-a. The total sales mix variance.

3-b. The total sales quantity variance.

4. The total sales volume variance.

In: Accounting

Big Box Retailer began business during 2017, and decided to use the Dollar-Value LIFO Method to...

Big Box Retailer began business during 2017, and decided to use the Dollar-Value LIFO Method to account for Inventory.   On their December 31, 2017 Balance Sheet, Big Box reported an ending inventory balance of $ 2,000,000.

As of the end of 2017, Big Box scaled their price index to 100.   Various Information for Big Box Retailer is as follows:

                                             Inventory @       Price                                  Inventory Purchases

                                          “Current Cost”      Index              Year               During Year

    December 31, 2018        $ 2,400,000            120                2018             $   6,000,000

    December 31, 2019           2,250,000            125                2019                  8,000,000

A. At what amount will Big-Box Retailer report their Ending Inventory on their December 31, 2018 Balance Sheet?

B. What is the “Cost of Goods Sold” reported by Big Box Retailer for their fiscal year ending December 31, 2018?

C. At what amount will Big-Box Retailer report their Ending Inventory on their December 31, 2019 Balance Sheet ?

In: Accounting

Emma and Robert are discussing an investment opportunity about the stock XYZ. The stock has a...

Emma and Robert are discussing an investment opportunity about the stock XYZ. The stock has a current price of €100 and the forward price for delivery of this stock in 1 year is €110. The annual effective risk-free interest rate is 5%. This stock currently pays no dividends. Read the following discussions about the contract. Do you support them or not? Justify your answers.

i. Emma argues that investing in XYZ stock versus investing in the forward contract does not provide a comparative advantage.

ii. Robert says that he has read about rumours of a dividend of 3.5 to be paid on this stock, 6 months from now. If true, he is arguing that it would be more beneficial to invest in the forward contract, rather than investing in the stock.

iii. Emma argues that investing in the forward contract would be more advantageous than investing in the stock only if the 5% interest rate is not annual effective but continuously compounded.

In: Finance

We are considering hiring a catering company. Currently, we are preparing meals for employees. The following...

We are considering hiring a catering company. Currently, we are preparing meals for employees. The following is the cost of preparing a meal: Food $3.00 Labor 2.00 Fixed overhead 1.00 Total $6.00 The caterer has quoted a price of $5.50 per meal. Please help us to determine whether we should buy meals from this catering company.

Company A can order meals for its employees from a catering company or prepare meals on-site. Use the information in the exhibit to complete the following items.

Question

Answer

1. Which option is less expensive? Buy
2. What other factors could affect decision-making? All of the above factors
3. Assume in addition that the rent of a kitchen for preparing meals is $200 per day, one meal is served to each employee per day, and the company has 100 employees. What is the maximum price the company should pay for a catered meal?

In: Accounting

Branching Program write a program to do the following: A university needs to compute the tuition...

Branching Program write a program to do the following: A university needs to compute the tuition of its students. They will ask for the name, the number of units the student is taking, and their residency status. R=resident , N = non- resident. The tuition to be computed as follows: non-resident students pay $100 per unit; resident students pay $50 per unit if they take 12 or units or more and $75 per unit if they take less than 12 units Users may enter upper or lower case letters (R/r or N/n) for residency. Error check the user input and output an appropriate message if the input is invalid. If the input is valid, determine the unit price, and calculate the tuition. Output student name, residency, status, number of units, part-time(<12 units) or full-time ( 12 and over units), the price per unit, and the total cost. Do not use loops.

In: Computer Science