In: Operations Management
What is the clean price (invoice price) for a bond with face value of $1,000, annual coupon rate of 12%, semiannual payment, time to maturity of 17 years if the YTM is 14%? 12%? 10%? Respectively? What is the current yield for each of the three cases? If the last coupon is paid 60 days ago, what is the dirty price for each of three cases? (Assume 365 days a year)
In: Finance
A stock's current price is 62. A call option with exercise price of 79 and maturity of 3 months is currently priced at $ 16.
What is the option's time value?
In: Finance
The price of a non-dividend paying stock is $15 and the price of a six-month European call option on the stock with a strike price of $23 is $2. The risk-free rate is 4% per annum. What is the price of a six-month European put option with a strike price of $23?
In: Finance
What is price elasticity of demand? What are the determinants of price elasticity of demand. How does the concept of elasticity help in decision making and price setting. Provide examples to substantiate your responses and also cite the source of your information.
In: Economics
Six Measures of Solvency or Profitability
A)The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
| Property, plant, and equipment (net) | $1,513,200 | |||||
| Liabilities: | ||||||
| Current liabilities | $234,000 | |||||
| Note payable, 6%, due in 15 years | 1,164,000 | |||||
| Total liabilities | $1,398,000 | |||||
| Stockholders' equity: | ||||||
| Preferred $4 stock, $100 par (no change during year) | $2,097,000 | |||||
| Common stock, $10 par (no change during year) | 2,097,000 | |||||
| Retained earnings: | ||||||
| Balance, beginning of year | $2,236,000 | |||||
| Net income | 909,000 | $3,145,000 | ||||
| Preferred dividends | $83,880 | |||||
| Common dividends | 265,120 | 349,000 | ||||
| Balance, end of year | 2,796,000 | |||||
| Total stockholders' equity | $6,990,000 | |||||
| Sales | $48,253,150 | |||||
| Interest expense | $69,840 | |||||
Assuming that total assets were $7,969,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
| a. Ratio of fixed assets to long-term liabilities | ||||||||||||||||||||||||||||||||||||||||||||
| b. Ratio of liabilities to stockholders' equity | ||||||||||||||||||||||||||||||||||||||||||||
| c. Asset turnover | ||||||||||||||||||||||||||||||||||||||||||||
| d. Return on total assets | % | |||||||||||||||||||||||||||||||||||||||||||
| e. Return on stockholders’ equity | % | |||||||||||||||||||||||||||||||||||||||||||
| f. Return on common stockholders' equity |
% |
|||||||||||||||||||||||||||||||||||||||||||
|
---------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------- B) The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Income before income tax was $198,000, and income taxes were $29,800, for the current year. Cash dividends paid on common stock during the current year totaled $37,584. The common stock was selling for $120 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.
|
In: Accounting
3. Relationship between tax revenues, deadweight loss, and demandelasticity
The government is considering levying a tax of $100 per unit on suppliers of either leather jackets or smartphones. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for leather jackets is shown by DLDL (on the first graph), and the demand for smartphones is shown by DSDS (on the second graph).
Suppose the government taxes leather jackets. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+TaxS+Tax) shifted up by the amount of the proposed tax ($100 per jacket).
On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for leather jackets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.
Leather Jackets MarketTax RevenueDeadweight Loss050100150200250300350400450500550600240220200180160140120100806040200PRICE (Dollars per jacket)QUANTITY (Jackets)DLSupplyS+Tax
Instead, suppose the government taxes smartphones. The following graph shows the annual supply and demand for this good, as well as the supply curve shifted up by the amount of the proposed tax ($100 per phone).
On the following graph, do for smartphones the same thing you did previously on the graph for leather jackets. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for smartphones. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.
Smartphones MarketTax RevenueDeadweight Loss050100150200250300350400450500550600240220200180160140120100806040200PRICE (Dollars per phone)QUANTITY (Phones)DSSupplyS+Tax
Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals.
|
If the Government Taxes... |
Tax Revenue |
Deadweight Loss |
|---|---|---|
|
(Dollars) |
(Dollars) |
|
| Leather jackets at $100 per jacket | ||
| Smartphones at $100 per phone |
Suppose the government wants to tax the good that will generate more tax revenue at a lower welfare cost. In this case, it should tax because, all else held constant, taxing a good with a relatively elastic demand generates larger tax revenue and smaller deadweight loss.
In: Economics
NOTE: For this assignment, you will make two HTML pages.
<!doctype html>
<html>
<head>
<meta charset="UTF-8">
<title>Number Check</title>
<script type="text/javascript">
/* <![CDATA[ */
function checkTheNumber()
{
var num = document.getElementById("theNumber").value;
var msg = "";
if (num >= 100)
msg = msg + "The number is greater than ";
msg = msg + "or equal to 100.";
alert(msg);
}
/* ]]> */
</script>
</head>
<body>
<h3>Number Checker</h3>
<form action="NumberCheck.html" method="post" name="theForm"
onsubmit="checkTheNumber(); return false;">
Enter a number: <input type="text" name="theNumber" id="theNumber" />
<br />
<br />
<input type="submit" value="Check the Number" />
</form>
</body>
</html>
Part 2:
Secondly, highlight, copy, and paste the following code into a new file in your editor, and save it as AreaCodes.html.
<!doctype html>
<html>
<head>
<meta charset="UTF-8">
<title>Number Check</title>
<script type="text/javascript">
/* <![CDATA[ */
function checkTheNumber()
{
var num = document.getElementById("theNumber").value;
var msg = "";
if (num >= 100)
msg = msg + "The number is greater than ";
msg = msg + "or equal to 100.";
alert(msg);
}
/* ]]> */
</script>
</head>
<body>
<h3>Number Checker</h3>
<form action="NumberCheck.html" method="post" name="theForm"
onsubmit="checkTheNumber(); return false;">
Enter a number: <input type="text" name="theNumber" id="theNumber" />
<br />
<br />
<input type="submit" value="Check the Number" />
</form>
</body>
</html>
Add two hypertext links to the index.html file that is in your class folder. Make each of these hypertext links display one of the two HTML pages that you made for this assignment.
In: Computer Science
Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabilities have been available only on expensive weight machines used primarily by physical therapists. At a recent trade show, demonstrations of the machines resulted in significant dealer interest. In fact, the number of orders that BFI received at the trade show far exceeded its manufacturing capabilities for the current production period. As a result, management decided to begin production of the two machines. The two machines, which BFI named the BodyPlus 100 and the BodyPlus 200, require different amounts of resources to produce.
The BodyPlus 100 consists of a frame unit, a press station, and a pec-dec station. Each frame produced uses 4 hours of machining and welding time and 2 hours of painting and finishing time. Each press station requires 2 hours of machining and welding time and 1 hour of painting and finishing time, and each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 100.
The BodyPlus 200 consists of a frame unit, a press station, a pec-dec station, and a leg- press station. Each frame produced uses 5 hours of machining and welding time and 4 hours of painting and finishing time. Each press station requires 3 hours of machining and welding time and 2 hours of painting and finishing time, each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time, and each leg-press station requires 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 200.
For the next production period, management estimates that 500 hours of machining and welding time; 350 hours of painting and finishing time; and 120 hours of assembly, testing, and packaging time will be available.
The net retail price of the BodyPlus 100 and the BodyPlus 200 are $350 and $445, respectively. Although some flexibility may be available to BFI because of the unique capabilities of the new machines. Authorized BFI dealers can purchase machines for 70% of the suggested retail price. BFI’s president believes that the unique capabilities of the BodyPlus 200 can help position BFI as one of the leaders in high-end exercise equipment. Consequently, she states that the number of units of the BodyPlus 200 produced must be at least 35% of the total production of BodyPlus 100.
Analyze the production problem at Better Fitness, Inc., and prepare a report for BFI’s president presenting your findings and recommendations. The report should include the following items:
The recommended number of BodyPlus 100 and BodyPlus 200 machines (In other words, find the optimal level of production for BodyPlus 100 and BodyPlus 200 using linear programming model).
Objective function: Total profit
BodyPlus 200 requirement constraint
Non-negativity constraint
Time Constraint:
Machining & Welding
Painting & Finishing
Assembly, Test, and Packaging
The effect on profits of the requirement that the number of units of the BodyPlus 200 produced must be at least 25% of the total production of BodyPlus 100. where efforts should be expended in order to increase contribution to profits
Include a copy of your linear programming model
In: Operations Management
Bell Computers purchases integrated chips at $350 per chip. The holding cost is $34 per unit per year, the ordering cost is $121 per order, and sales are steady at 400 per month. The company's supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below .
| Rich Blue Chip's Price Structure | |
|---|---|
| Quantity Purchased | Price/Unit |
| 1-99 units | $350 |
| 100-199 units | $325 |
| 200 or more units | $300 |
a) What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips?
The optimal order quantity after the change in pricing structure is ______units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is ________(round your response to the nearest whole number).
b) Bell Computers wishes to use a 10%
holding cost rather than the fixed $37 holding cost in part a. What is the optimal order quantity, and what is the optimal annualcost?
The optimal order quantity after the change in the holding cost calculation is ______units (enter your response as a whole number).
The total annual cost for Bell computers to order, purchase, and hold the integrated chips is ________round your response to the nearest whole number).
In: Other