There are two factories in a small town. Both of them emit carbon dioxide into the air. Factory 1 currently emits 120 tons per month, whereas factory 2 currently emits 160 tons per month. The technology of each factory is different, so their costs of reducing emissions are different as well. The tables below show the costs of reducing emissions in increments of 20 tons per month for each factory:

The existing technology does not allow for reductions in emissions beyond 100 tons/month. That is, the most each factory could reduce its emissions by is 100 tons/month.

Suppose the government in this town would like to cut monthly emissions to half of the current level. To do that, the government has decided to impose a tax for every 20 tons of pollution per month emitted by a factory. To achieve its desired goal (but not exceed the goal), the tax would have to be set between $ _____________   and $ _________________   for every 20 tons/month. (The first number should be the lower end of the tax, and the second number should be the higher end of the tax.)

Incorrect answers: 450 and 720 respectively

Railback Battery Systems Following is the seven-year forecast for a new venture called Railback Battery Systems:

Part 1:

Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over Railback's life as an enterprise. Beginning in 2026 Railback's capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1. Assume a tax rate is 21% and a cost of capital of 7.75% Question: Determine the NPV of Railback Battery Systems Free Cash Flow for the years 2020 - 2026. HINT: Remember to account for loss carry-forwards when determining income taxes. The answer to this question was determined in Excel. Your answer may deviate slightly depending upon differences in truncation and rounding. Answers below are in $000.

Part 2:

Calculate the fair market value (NPV) for Railback Battery Systems. For this problem assume that the Net Present Value of Railback's free cash flow for the period 2020 - 2026 is $3000 (NOTE its not $3000 but make this assumption in case the answer you determined in the first question was incorrect. Assume no underlying changes to any of the data in the problem. DO NOT USE YOUR ANSWER FROM THE QUESTION ABOVE. All ANSWERS ARE IN $000

This is in C code.

Below is a list of actions to be performed on a file. Assume the following structure is used to store data in the file:

struct person {

char lastName[15];

char firstName[15];

char age[4]; };

Write a program that creates and opens a file called nameage.dat and create functions that perform the following actions. Call these functions from the main method: Assume the file empty, and create 100 records with the following data: lastName = "unassigned" firstname = "" age = "0" Prompt the user for 10 last names, first names, and ages and write them to the file Read the file, from the beginning. Prompt the user for a last name, first name, and age. Update the 4th record with the information provided by the user. Delete the 109th record by setting the fields to the following values: lastName = "unassigned" firstname = "" age = "0" Requirements You will include comments at the start of your program with your name, date written, and purpose of the program. Create the structure identified in the description. Create the four methods identified in the description. Create and open the file in your main method. Call your four methods, in the order they appear in the description. Make sure your file is called nameage.dat Prompt the user for data as required. Use the test cases as your guide. Hints To make the assignment easy use a random-access function with binary data. After the first 100 empty records are created, please append the entries for the second function. Repl.it may tell you your program passes the tests, however, Repl.it can't inspect the contents of the file. It will not be able to tell you if your file is set up correctly. I will have to manually grade that. Use the user interaction shown in the test cases to set up your prompts for user information. I recommend using puts() to display the prompt to the user. Assume the file is to be written to the local directory. You do not need and should not include any path information when opening the file.

Gargantuan Industries is a multiproduct company with several manufacturing plants. The Boise Plant manufactures and distributes two household cleaning and polishing compounds, standard and commercial, under the Super Clean label. The forecasted operating results for the first six months of the current year, when 100,000 cases of each compound are expected to be manufactured and sold, are presented in the following statement.

^*The fixed selling and administrative expenses are allocated between the two products on the basis of dollar sales volume.

The standard compound sold for $20 a case and the commercial compound sold for $30 a case during the first six months of the year. The manufacturing costs, by case of product, are presented in the schedule below. Each product is manufactured on a separate production line. Annual normal manufacturing capacity is 200,000 cases of each product. However, the plant is capable of producing 250,000 cases of standard compound and 350,000 cases of commercial compound annually.

Depreciation charges are 50 percent of the fixed manufacturing overhead of each line.

The following schedule reflects the consensus of top management regarding the price-volume alternatives for the Super Clean products for the last six months of the current year. These are essentially the same alternatives management had during the first six months of the year.

Standard Compound

Commercial Compound

Gargantuan’s top management believes the loss for the first six months reflects a tight profit margin caused by intense competition. Management also believes that many companies will leave this market by next year and profit should improve.

Required:

1. What unit selling price should Gargantuan Industries select for each of the Super Clean compounds for the remaining six months of the year?

(JUST FYI: The selling price for standard compound is not $20 per case)

2-a. Independently of your answer to requirement (1), assume the optimum alternatives for the last six months were as follows: a selling price of $23 and volume of 50,000 cases for the standard compound, and a selling price of $35 and volume of 35,000 cases for the commercial compound. Calculate the contribution margin.

2-b. Given the scenario in requirement (2-a), should management consider closing down its operations until January 1 of the next year in order to minimize its losses?

Gargantuan Industries is a multiproduct company with several manufacturing plants. The Boise Plant manufactures and distributes two household cleaning and polishing compounds, standard and commercial, under the Super Clean label. The forecasted operating results for the first six months of the current year, when 100,000 cases of each compound are expected to be manufactured and sold, are presented in the following statement.

^*The fixed selling and administrative expenses are allocated between the two products on the basis of dollar sales volume.

The standard compound sold for $20 a case and the commercial compound sold for $30 a case during the first six months of the year. The manufacturing costs, by case of product, are presented in the schedule below. Each product is manufactured on a separate production line. Annual normal manufacturing capacity is 200,000 cases of each product. However, the plant is capable of producing 250,000 cases of standard compound and 350,000 cases of commercial compound annually.

Depreciation charges are 50 percent of the fixed manufacturing overhead of each line.

The following schedule reflects the consensus of top management regarding the price-volume alternatives for the Super Clean products for the last six months of the current year. These are essentially the same alternatives management had during the first six months of the year.

Standard Compound

Commercial Compound

Gargantuan’s top management believes the loss for the first six months reflects a tight profit margin caused by intense competition. Management also believes that many companies will leave this market by next year and profit should improve.

Required:

1. What unit selling price should Gargantuan Industries select for each of the Super Clean compounds for the remaining six months of the year?

(JUST FYI: The selling price for standard compound is not $20 per case)

2-a. Independently of your answer to requirement (1), assume the optimum alternatives for the last six months were as follows: a selling price of $23 and volume of 50,000 cases for the standard compound, and a selling price of $35 and volume of 35,000 cases for the commercial compound. Calculate the contribution margin.

2-b. Given the scenario in requirement (2-a), should management consider closing down its operations until January 1 of the next year in order to minimize its losses?

You want to purchase an office building in Brooklyn. The property contains 32,100 square feet of rentable space and is currently occupied by multiple tenants each with differing maturities on their respective leases. No lease is currently shorter than 1 year. The annual rent in the 1st year of ownership is $37.50/sq ft. The vacancy rate is 5.5%. You expect to incur collection losses (from tenant default) on 1.5% of the square feet during your first year. 1. What is the Potential Gross Income (PGI) for the first year? 2. What is the Effective Gross Income (EGI) for the first year? 3. If operating expenses are expected to be 50% of EGI, what is the Net Operating Income (NOI) generated by the property in the 1st year of ownership? 4. You decide you want to take out a loan to finance the purchase of this property. It will be an IO loan at a rate of 6.25%, compounded annually, with annual payments. The lender will provide financing up to a minimum Debt Service Coverage Ratio (DSCR) of 1.2 based off of the 1st year NOI. What is the largest annual loan payment the lender will allow you to make based on the DSCR? 5. If you get a loan that corresponds to the largest annual loan payment the lender will allow you to make based on the DSCR (computed in part 4), what will be your net income in the first year? 6. What is the largest loan a lender is willing to provide you with based on question 4? (Use the fact that this is an IO loan at 6.25%. Also use the loan payment from question 4.) 7. The seller’s asking price for the property is $7,000,000. If the lender has a maximum 70% LTV requirement what is the most the bank will lend you? (Only based on the LTV requirement.) 8. The loan must satisfy both the minimum DSCR of 1.2 and maximum LTV of 70%. What is the biggest loan the borrower can get? 9. If you buy the property at the asking price of $7,000,000 using the biggest loan you can get (from question 8), what will your down payment be? 10. What is the annual mortgage payment on the loan in question 8? 11. If you buy the property at the asking price of $7,000,000, what will your ‘going in’ Cap Rate be? 12. If the annual irr for this property is 8.5%, then based on the cap rate in question 11, what does this imply is expected NOI growth rate for this property? 13. You do research and find that similar properties are selling at an 11% cap rate. Using an 11% cap rate, what price would you offer for this property? 14. Suppose you buy the property at the asking price of $7,000,000 and own it for exactly 1 year. You make the down-payment in part (9). You collect the NOI in part (3). You make the annual mortgage payment in part (10). In two years, the NOI is expected to be the same. You sell the property at the end of year 1, at a cap rate of 50 basis points below the cap rate in part (11) and you pay off the loan balance when you sell. Compute the IRR on this investment.

1:

Demand facing an individual, perfectly competitive firm is:

2:

At the point at which P= MC, suppose that a perfectly competitive firm's MC = $100, its AVC = $80 and its ATC = $110. This firm should

3:

Sometimes airlines raise ticket prices as the flight departure date approaches in the hope of increasing revenue. The airlines raise their prices on the assumption that:

4:

The demand for textbooks is price inelastic. Which of the following would explain this?

5:

You own a small deli that sells sandwiches, salads, and soup to the community. Which of the following is an implicit cost of the business?

Assume that you write a column for a very widely followed financial blog titled, “ Finance Questions: Ask the Expert.” Your job is to field readers’ questions that deal with finance. This week you are going to address two questions from your readers that have to do with dividends.

Question 1: I own 8 percent of the Standlee Corporation’s 30,000 shares of common stock, which most recently traded for a price of $ 98 per share. The company has since declared its plans to engage in a two- for- one stock split.

a. What will my financial position be after the stock split, compared to my current position? ( Hint: Assume the stock price falls proportionately.)

b. The executive vice-president in charge of finance believes the price will not fall in proportion to the size of the split and will only fall 45 percent because she thinks the pre-split price is above the optimal price range. If she is correct, what will be my net gain from the split?

Question 2: You are on the board of directors of the B. Phillips Corporation, and Phillips has announced its plan to pay dividends of $ 550,000. Presently there are 275,000 shares outstanding, and the earnings per share are $ 6. It looks to you like the stock should sell for $ 45 after the ex-dividend date. If instead of paying a dividend, the management decides to repurchase stock a. What should be the repurchase price that is equivalent to the proposed dividend? ( Hint: Ignore any tax effects.) b. How many shares should the company repurchase? c. You want to look out for the small shareholders. If someone owns 100 shares, do you think he would prefer that the company pay the dividend or repurchase stock?

Currently, 11 states have legalized marijuana or cannabis for recreational use. Four more states, 1

including Arizona and New Jersey, are voting to legalize and tax recreational marijuana sales recently . The motivation for legalization includes allowing the government to use police resources against more serious crimes, removing illegal drug dealers, raising tax revenue, and treating addiction as a public health issue instead of a criminal issue.

Question 1

a. Taxing legal marijuana sales is attractive at a time when states are looking for ways to increase their

tax revenues. Illinois has collected more than $100 million in recreational marijuana tax revenue

2 since legalizing sales on Jan 1 this year .

Different states have different approaches toward taxing legal marijuana. Some states adopt an approach like a typical sales tax where the consumer pays a tax on the purchase price. For example, in Oregon, a consumer pays a tax of 17% of the purchase price.

Suppose the recreational marijuana market is perfectly competitive. Use a diagram to discuss the impact of the sales tax on marijuana in Oregon. (18%)

b. A major argument for legalization and taxation as a rational solution to illegal marijuana use is that

high tax would discourage users from consuming. Using over 23,000 actual transaction data,

3 economists have found that the price elasticity of demand for marijuana was about 0.70. Interpret

the price elasticity of demand. Is the demand for marijuana price elastic or inelastic? Does it make sense? If the government wants to reduce marijuana consumption by 20%, by how many percent the marijuana price must increase? (8%)

Currently, 11 states have legalized marijuana or cannabis for recreational use. Four more states, 1

including Arizona and New Jersey, are voting to legalize and tax recreational marijuana sales recently . The motivation for legalization includes allowing the government to use police resources against more serious crimes, removing illegal drug dealers, raising tax revenue, and treating addiction as a public health issue instead of a criminal issue.

Question 1

a. Taxing legal marijuana sales is attractive at a time when states are looking for ways to increase their

tax revenues. Illinois has collected more than $100 million in recreational marijuana tax revenue

2 since legalizing sales on Jan 1 this year .

Different states have different approaches toward taxing legal marijuana. Some states adopt an approach like a typical sales tax where the consumer pays a tax on the purchase price. For example, in Oregon, a consumer pays a tax of 17% of the purchase price.

Suppose the recreational marijuana market is perfectly competitive. Use a diagram to discuss the impact of the sales tax on marijuana in Oregon. (18%)

b. A major argument for legalization and taxation as a rational solution to illegal marijuana use is that

high tax would discourage users from consuming. Using over 23,000 actual transaction data,

3 economists have found that the price elasticity of demand for marijuana was about 0.70. Interpret

the price elasticity of demand. Is the demand for marijuana price elastic or inelastic? Does it make sense? If the government wants to reduce marijuana consumption by 20%, by how many percent the marijuana price must increase? (8%)