Health insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. Wellpoint claims that users of its LiveHealth Online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by Wellpoint.

Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings for a televisit to the doctor as opposed to an office visit (to 2 decimals).

95% confidence interval: $ to $ per visit

Your company is considering a capital investment of ​$212.469 million. The project will generate equal annual​ after-tax operating cash flows of ​$36.79 million for 7 years. At the end of its​ life, the project will be sold for ​$37 ​million, but the​ project's adjusted tax basis at termination will be ​$31 million. The project will require ​$16 million in additonal net working capital. With a 27​% marginal tax​ rate, what is the​ project's IRR? ​ (Percent with​ 1decimal)

At the end of the year, a company offered to buy 4,580 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 60,000 units of the product that X Company has already made and sold to its regular customers:

For the year, fixed cost of goods sold were $128,400, and fixed selling and administrative costs were $62,400. The special order product has some unique features that will require additional material costs of $0.77 per unit and the rental of special equipment for $3,000.

4. Profit on the special order would be

5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.14. The effect of reducing the selling price will be to decrease firm profits by

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue by investing the money deposited; currently, it averages 6.10 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.50 percent on all deposits. A recent study classified the bank’s annual operating costs into four activities.

Data on two representative customers follow.

Required:

a. Compute RSB&T's operating profits.

b. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = 0.50 percent of deposits; operating costs are 4 percent (= $28,500,000/$712,500,000) of deposits.

c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis.

Required A

Operating profit ??

Required B

Profit per customer

Customer A ??

Customer B ??

Required C

Customer A Customer B

Sales revenue ?? ??

Interest on deposit ?? ??

Total operating cost ?? ??

Customer profit / loss

5. Fancy Fish, a fine dining upscale restaurant in Northridge, California and 2016 Open Table Diners’ Choice award winner, is enjoying its eighteenth season of providing delectable food, exceptional service, and beautiful outdoor dining experiences. “Saturday - Half-off Bottled Wine Night” has made Fancy Fish one of the San Fernando Valley’s favorite restaurants. Every Saturday night, guests can enjoy half-off every bottle of wine on the wine list while dining in the restaurant or on the terrace. The owner began offering “Saturday - Half-off Bottled Wine Night” in 2010 as an incentive for guests to dine at Fancy Fish when the economy was in a recession. Now that the economy is booming, the owner is considering whether the promotion should be continued, or even expanded. One concern is the effect that the promotion is having on the overall revenue generated from sales to the participants.

A random sample of 28 checks was collected over the course of one month of Saturday nights. Fourteen checks were from customers participating in the half-off promotion, and the other 14 checks were from customers not participating. The total revenue from each check (less alcohol, tax, and tip) is presented below. Do these data present sufficient evidence that the checks of participants is significantly different from checks of non-participants? What is your recommendation to the owner regarding the status of the promotion?

With Wine Discount W/O Wine Discount

35 46

35 44

36 29

36 29

48 29

29 60

36 64

43 47

24 47

13 49

36 53

50 51

22 44

32 36

A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.5, the risk-free rate is 9.5%, and the market risk premium is 6.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

A company has just paid a dividend of $ 3 per share, D₀=$ 3 . It is estimated that the company's dividend will grow at a rate of 18 % percent per year for the next 2 years, then the dividend will grow at a constant rate of 5 % thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the stock's current price? Round your answer to two decimal places.

It is known that the company has a cost function ?? = 2?^3
3 - 15?^2
2 + 60? and the company is
price takers on the market. Given the market demand function ? = 22 - 2? and the supply function
market ? = 2 + 2?.
A. Determine market prices in perfect competition.
b. Prove that the price at 3.a company produces at the lowest average price.
c. Use charts, illustrate what happens in the market if at the initial price 15.
What happens in the long run (consider constant costs)

the function is TC = 2Q^3 - 15Q^2 + 60Q

11. Given the table below, what is the profit maximizing output for the producer in the short‑run?

Output - Total revenue - Total cost

           1                    2.00                                     1.00

           2                    4.00                                     1.50

           3                    6.00                                     2.50

           4                    8.00                                     4.50

           5                   10.00                                    7.00

     a. 1 unit

     b. 2 units

     c. 4 units

     d. 5 units

12. A competitive firm can incur losses but continue to operate in the short‑run if it at least able to cover its:

     a. total costs

     b. fixed costs

     c. variable costs

     d. average total costs

13. Shannon the sorghum farmer is one of 5,000 perfectly competitive farmers raising sorghum in the United States. After attending classes at Krannert Business School, Shannon decides to charge $6.00/bushel for her    crop, rather than the $5.00/bushel she is currently   receiving. If she produces 500 bushels, what will her total revenue be:

     a. $3000

     b. $2500

     c. $2000

     d. $0

14. A firm should shut down in the short run if:

     a. price is greater than average variable costs

     b. average fixed costs are greater than marginal revenue

     c. price is less than average variable costs

     d. total costs are greater than fixed costs

15. Mr. T's Golden Necklace Company faces the following costs:

               Quantity             Total Cost

                  1                   $120

                  2                    230

                  3                    330

                  4                    460

                  5                    600

Assuming Mr. T is a price‑taker, and the market price is $130 per necklace, how many necklaces should Mr. T. produce?

     a. 2

     b. 3

     c. 4

     d. 5

Part 1 – Instruction - You will prepare the following in excel: 1. General Journal

a. Journal entries – full proper journal entry with descriptions

b. Post entries to ledger

2. Ledger – T accounts a. Show beginning balance b. Post all activity – make sure to include reference to journal entry c. Show ending balance

3. Trial Balance a. Unadjusted Trial Balance

The following transaction occurred for Agape Pet Supply Co. during the period ended 12/31/x1.

They provide services to customers and sell products.

March 1 The company was formed with$1,000,000 share authorized - $1 par value.

March 20 The company issued stock for $150,000 at par value.

April 7 Purchased supplies for $4,000 on account.

April 28 Paid $1,200 to get a patent on their special pet leases.

May 10 Purchased inventory for $60,000 on account. The company uses the FIFO method under a perpetual system to account for inventory

May 19 Purchase equipment with a Note Payable of $30,000 due in 5 years. The company used the straight-line method for depreciation.

May 31 Purchase two parcels of land for 55,000 - Parcel A was $30,000 and Parcel B was $25,000. It was thought they would use this land to build a warehouse.

June 1 Purchased two years of Insurance for $6,000. June 26 Provided goods to a customer worth $18,000. Inventory had a cost of $9,200. The customer paid $8,000 cash and rest on account.

July 7 Provided goods of $3,000 to a customer for cash. Inventory had a cost of $1,400. July 26 Paid employee wages of $4,000. August 9 Customer paid $5,000 for goods to be provided in the future.

August 17 Received $12,000 on account for goods provided. Inventory had a cost of $6,700.

Sept 10 Invested $10,000 of excess cash in securities – intend to hold them for several years.

Sept 21 Collected $5,000 from a customer that owed you money for goods previously provided.

Sept 29 It was determined that the land previously purchase to build a warehouse. They sell parcel A for $45,000. Parcel B they decide to hold as an investment.

Oct 1 Paid rent for the period of $12,000 for the next year.

Oct 19 Received Interest income on investments of $850 Nov 8 Received a utility bill for $2,000 for utility services received. (Paid on account)

Nov 27 Paid $2,500 of the amount owed for supplies.

Dec 15 Paid dividend of $3,000.