A company has granted 2,000,000 options to its employees. The stock price and strike price are both $70. The options last 8 years and vest after 2 years. The company decides to value the options using an expected life of 6 years and a volatility of 30% per annum. Dividends on the stock are $1.50 per year, payable halfway through each year, and the risk-free is 5%. What will the company report as an expense for the options on its income statement?
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In: Finance
E Price
a) Identify the price point ranges for each product type for
business to consumer and for business to business.
Create a table to summarize the products (services) and the price
points.
It could be bronze, silver, gold or small, medium, and large etc
for different product types coffee, tea, brownies etc or TV's,
phones etc. If the service is free to consumers explain why? How
does the company make money? What is the price they charge to
businesses for the different services? Discuss if some services are
provided free to consumers and if the service can be upgraded for a
fee that might suggest a Good, Better, Best pricing strategy.
b) Discuss why or why not you feel their strategy is penetration
pricing or skimming.
c) Discuss if they segmented the market by price or some other
segmentation approach.
d) What is the annual revenue for Facebook inc?
In: Operations Management
Suppose the Madison city government imposes a price ceiling on the rental price of apartments.The demand for rental apartments is given by the equationP= 1500−0.2Q, and the supply is given by the equationP= 0.2Q+ 300.
(a) Without a price ceiling, what would be the equilibrium quantity and price? Calculate the consumer surplus (CS) and producer surplus (PS). Graph the demand and supply curves and shade the areas for CS and PS on the graph.
(b) Suppose the price ceiling is $700. How large a shortage will this create?
(c) Draw a graph representing the market outcome with the price ceiling. Calculate CS andPS.
(d) How does total surplus change due to the price ceiling?
(e) Suppose the government decided to instead implement a price ceiling that only created a shortage of 500 apartments. What price ceiling would accomplish this?
In: Economics
Original scenario, I am going to place you in a situation where you need to advise a client on an advertising decision and provide a rationale for your decision.
Personally a simple and tried advertising system is lawn signs. Lawn signs is an extremely inexpensive form of advertising that allows for a great deal of selectivity. A manager can order about 100 Yard signs for about $300.00 , they can be fully decked out and have a great design. The manager or owner can then go around to the areas or business they want to get business in and start putting down signs on every corner that is a public space. They will just have to make sure that anytime they want to put it on private property that they ask for permission first. They can even go around to the local business in the area and ask to put their signs in their windows. Some business will agree but some will need to be negotiated with. Other then that they will just need to keep a log of where they put them down. Its not a complex advertising medium but one that has been around for century’s and continues to deliver. The only thing that may change that is that signs may not be a good choice is some areas have zoning laws where they prohibit signs in specific areas.
Please respond in 100-150 words
In: Economics
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (6,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $60,000 of direct materials cost, $78,460 conversion cost $ 138,460 Costs incurred in September Direct materials $ 415,000 Conversion $ 358,000 Work in process inventory, September 30 (11,000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) ? Units started in September 32,000 Units completed and transferred to finished goods inventory 27,000
Required: Compute each of the following using the weighted-average method of process costing.
1. & 2. The number of equivalent units for materials and conversion for the month.
3. & 4. The cost per equivalent unit of materials and conversion for the month.
5. The total cost of goods transferred out.
6. The total cost of ending work in process inventory.
In: Accounting
Ten randomly selected people took an IQ test A, and next day they took a very similar IQ test B. Their scores are shown in the table below. Person A B C D E F G H I J Test A 71 119 104 100 108 127 83 97 94 92 Test B 72 119 110 105 106 130 85 100 92 91 1. Consider (Test A - Test B). Use a 0.05 0.05 significance level to test the claim that people do better on the second test than they do on the first. (Note: You may wish to use software.)
(a) What test method should be used? A. Two Sample t B. Two Sample z C. Matched Pairs
(b) The test statistic is
(c) The critical value is
(d) Is there sufficient evidence to support the claim that people do better on the second test?
A. Yes B. No
2. Construct a 95 95 % confidence interval for the mean of the differences. Again, use (Test A - Test B). <μ< <μ
please show your work and what function to use on the calculator/thank you!
In: Statistics and Probability
The following information for Arman Corporation is given at the beginning of the year. All figures are in million dollars
Sales = 250, Total capital = 200 million
Long-term Debt = 80 Cost of debt = 12 percent
Capital expenditures = 50 Assets = 200
Change in working capital = 19.25 Beta =1.5
Cost of goods sold = 100 Depreciation = 25
ROE = 15 % Tax rate = 35%
Risk-free rate = 5%
Administrative expenses = 10 Market risk premium = 8 %
Growth rate of the free cash flow = 50 % first year, 30 percent the following year, and then constant at 5% thereafter
Using the information, calculate the free cash flow and weighted average cost of capital (WACC) to find the value of this corporation at the beginning of the year
FCFF = EBIT (1-t) + Depreciation – Capital expenditures – Increase in NWC
FCFF0 = (250-100-25-10)*0.65 +25-50-19.25 = 30.5
FCFF1 = 30.5*(1.5) =45.75
FCFF2 =45.75*(1.3) =59.475
WACC = (0.6)(5+1.5*8) +(0.4)*12*(1-0.35) = 13.32%
V1 = 59.475/(0.1332-0.05) =714.84375
Value today: V0 = (714.84375+45.75)/1.1332 = 671.191
In: Finance
PA4-1 Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5]
Required:
| 1-a. | Prepare an adjusted trial balance at September 30, 2015. |
|
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2015. PA4-1 Part 2
|
| Accounts Payable | $ | 600 |
| Accounts Receivable | 300 | |
| Accumulated Depreciation—Equipment | 900 | |
| Cash | 300 | |
| Common Stock | 200 | |
| Depreciation Expense | 300 | |
| Equipment | 3,200 | |
| Income Tax Expense | 300 | |
| Interest Revenue | 100 | |
| Notes Payable (long-term) | 200 | |
| Notes Payable (short-term) | 500 | |
| Prepaid Rent | 100 | |
| Rent Expense | 400 | |
| Retained Earnings | 1,500 | |
| Salaries and Wages Expense | 2,200 | |
| Service Revenue | 6,200 | |
| Supplies | 500 | |
| Supplies Expense | 200 | |
| Travel Expense | 2,600 | |
| Unearned Revenue | 200 |
In: Accounting
|
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (4,500 units, 100%
complete with respect to |
$ | 153,900 | |
| Costs incurred in September | |||
| Direct materials | $ | 450,000 | |
| Conversion | $ | 367,000 | |
| Work in process inventory, September 30 (9,500 units, 100%
complete with respect to direct materials, 30% complete with respect to conversion) |
? | ||
| Units started in September | 35,500 | ||
| Units completed and transferred to finished goods inventory |
30,500 |
Required:
Compute each of the following using the weighted-average method of
process costing.
1. & 2. The number of equivalent units for
materials and conversion for the month.
3. & 4. The cost per equivalent unit of
materials and conversion for the month.
5. The total cost of goods transferred out.
6. The total cost of ending work in process
inventory.
In: Accounting
S.B. is a 57-year-old African American man with newly diagnosed late-stage small-cell lung cancer. He has undergone radiation therapy to the brain for his metastases and is to start chemotherapy next week. His past medical history includes hypertension. He has no known drug allergies. A combination chemotherapy regimen has been chosen: cisplatin 100 mg/m2 for one dose on the first day and etoposide 100 mg/m2 IV every day for 3 days. He has experienced nausea and vomiting.
Write your prescription for this patient.
In: Nursing