a) What’s the difference between a stock dividend and a stock split?

    b)     How do stock dividends and splits affect stock prices?

    c)     In what situation should a firm pay a stock dividend?

    d)     In what situation should a firm split its stock?

    e)    Consider the following case: You have 100 common shares of Comm Suppliers Inc. (CSI) The EPS is $4.00, the DPS is $2.00; and the stock sells for $60 per share. If CSI does a two-for-one stock split how many shares will you have; what will be the new EPS and DPS; and what would you expect the stock price to be?

Needing Part B Assume that you have a LONG position in 25 call options with the following characteristics: Underlying stock Lionsgate (100 shares) Exercise price (X) 5.00 ($ per share) Expiration date June, 2018. At the time you purchased the call options, you paid a premium of Ct = $1.00 ($ per share). A. Given the opening trade described above, what are the three possible closing trades for your call option position? B. Assume that you have decided that your closing trade will be to offset the options. Describe what action you must take to offset the options. Be thorough.

In order to take out a loan, you are required to put up some type of collateral. You decide to offer 1,000 shares of your ZG Corp. stock which is valued at $100 per share. You are concerned that the stock price will increase to $125 before you repay the loan and the lender will sell your shares of stock for a profit. How could you manage this risk using a financial derivative?

(Would you purchase a put or call option? If you they profit off of the shares wouldn't the loan repayment be forgiven because the share of stock exceeds the loan amount of $1M)

Also this is for Risk Management.

Presented below is information related to Skysong Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2017 $ 87,400 100 December 31, 2018 152,755 137 December 31, 2019 148,824 156 December 31, 2020 168,493 169 December 31, 2021 200,018 182 December 31, 2022 238,140 189 Compute the ending inventory for Skysong Company for 2017 through 2022 using the dollar-value LIFO method.

Ending Inventory 2017:

Ending Inventory 2018:

Ending Inventory 2019:  

Ending Inventory 2020:

Ending Inventory 2021:

Ending Inventory 2022:

Assignment 1

Willy's Widget, a monopoly, faces the following demand schedule (sales in widgets per month):

Calculate marginal revenue over each interval in the schedule. If marginal cost is constant at $40 and fixed cost is $300, what is the profit maximizing level of output? What is the level of profit? Explain your answer using marginal cost and marginal revenue.

Repeat the exercise for MC = $18

Corey Church is a seller of designer sunglasses. Following is a summary of Corey Church’s purchases and sales for the month of August, 2020. Calculate the cost of the ending inventory under the A) FIFO and B) LIFO methods. Show your answer on the following tables.

Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)

The production manager of a clothing manufacturer estimates that the total annual cost of producing men’s suits is given by the equation: C = 5,000 + 4,100Q – 4.4Q2 + .004Q3. What is the minimum price the firm can accept to not shut down in the short run? Hint: Write your answer to two decimal places.

A firm produces 100 units of good A at a total cost of $1,500 and separately 200 units of good B at a cost of $2,000. By combining the production of A and B, it is possible to produce the same quantities of A and B respectively at a combined total cost of $2,250. Compute the economies of scope experienced by this firm. Hint: Write your answer to two decimal places.

Suppose you are a monopoly in the market for a
specific video game. Your demand curve is given by P = 100 - Q / 2,
and your marginal cost curve is Cm = 20. Your fixed costs are $ 300.
a. Graph the demand and the marginal cost curves.
b. Derive and plot the marginal income curve on the
same graphic above.
c. Calculate and indicate on the graph the price and quantity
monopolistic.
d. What is your profit?
e. What is the level of consumer surplus?
f. What would be the level of consumer surplus with a
perfect competition and what is the difference after monopoly?
g. Please give a conclusion and explain your answer in detail.

Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows(FCFs) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC = 17%.

a.) What is Dozier's horizon value?

b.) What is the current value of operations for Dozier?

c.) Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share?