You are considering how to invest part of your retirement savings.You have decided to put $ 100, 000 into three stocks: 52 % of the money in GoldFinger (currently $ 17/share), 24 % of the money in Moosehead (currently $ 77/share), and the remainder in Venture Associates (currently $ 4/share). Suppose GoldFinger stock goes up to $ 44/share, Moosehead stock drops to $ 57/share, and Venture Associates stock rises to $ 11 per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?
c. If you don't buy or sell any shares after the price change, what are your new portfolio weights?
In: Finance
Assume the following information for Webster Company: Beginning Raw Materials Inventory (Quantity): 200 items Budgeted Ending Raw Materials Inventory (Quantity): 200 items Budgeted direct materials (Purchased): $7,000 Standard quantity of direct materials per unit: 20 items Budgeted production: 100 units Actual Ending Raw Materials Inventory (Quantity): 175 items Actual direct materials costs (Purchased): $7,500 Actual quantity of direct materials used per unit: 19 items Actual production: 150 units
What is Webster’s direct materials price variance? (do not round intermediate calculations, round final answer to the nearest cent)
In: Accounting
Assume that the manufacturing of cellular phones is a perfectly competitive indus-try. The market demand for cellular phones is described by a linear demand function:QD=6000−50P9. There are fifty manufacturers of cellular phones. Each manufacturerhas the same production costs. These are described by long-run total and marginal costfunctions ofTC(q)=100+q2+10q,andMC(q)=2q+10.a. Show that a firm in this industry maximizes profit by producingq=P−102.b. Derive the industry supply curve and show that it isQS=25P−250.c. Find the market price and aggregate quantity traded in equilibrium.d. How much output does each firm produce? Show that each firm
In: Economics
The mean cost of domestic airfares in the United States rose to an all-time high of $375 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B. a. What is the probability that a domestic airfare is $550 or more (to 4 decimals)? b. What is the probability that a domestic airfare is $265 or less (to 4 decimals)? c. What if the probability that a domestic airfare is between $310 and $480 (to 4 decimals)? d. What is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)
In: Statistics and Probability
Sheffield Inc. had beginning inventory of $25,200 at cost and $42,000 at retail. Net purchases were $252,000 at cost and $357,000 at retail. Net markups were $21,000, net markdowns were $14,700, and sales revenue was $308,700. Assume the price level increased from 100 at the beginning of the year to 115 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory using the dollar-value LIFO retail method $_________
(Give me please exactly answer for this blank space)
In: Accounting
You are trying to get the cheapest airfare to reach your hometown. You just found on makemytrip.com that the ticket home will cost $400, and it cannot be refunded or exchanged. You also have the option of buying a ticket for $450, which can be refunded for $350 (and thus costs you $100). The price of tickets is expected to change in one week, and you will have one more chance to buy a ticket. There is a 50% chance that the ticket would cost $300, and a 50% chance that it would cost $600. Construct a decision tree and determine the best course of action to minimize the expected expense. Assume that you (decision maker) are a sensible adult who takes rational decisions!!
In: Operations Management
You are considering how to invest part of your retirement savings.You have decided to put $ 100 comma 000 into three stocks: 53 % of the money in GoldFinger (currently $ 20/share), 18 % of the money in Moosehead (currently $ 70/share), and the remainder in Venture Associates (currently $ 10/share). Suppose GoldFinger stock goes up to $ 43/share, Moosehead stock drops to $ 68/share, and Venture Associates stock drops to $ 9 per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?
c. If you don't buy or sell any shares after the price change, what are your new portfolio weights?
In: Finance
ABC firm is selling bonds for $950 a bond with $1,000 par value at 5% coupon paid annually. The bond will mature in 8 years. Firm is selling 10,000 such bonds. This firm is also selling preferred stock at $75 per share. Firm is selling 100,000 such shares at 8% dividend with $100 par value. This firm is also raising money by selling another issue of common stocks. The most recent dividend was $4.50 and this firm is expecting to grow at 7% rate per year forever. The current selling price of their stock is $60 and company is planning to sell 300,000 shares. Estimate Weighted Average Cost of Capital (WACC). This firm is in 40% tax bracket.
In: Finance
Suppose there are two firms in an instant coffee market. Market demand curve is given by P = 100 – 2Q, and marginal cost of production for both firms are equal and constant at m=12.
a) Find the output that will maximize firm’s profit if two firms choose quantity simultaneously. What is the price that they will charge and how much is the profit of each firm?
b) Suppose the quantity game as in (b) is played by the firm over and over multiple times. Compute the revenue matrix for these firms where two actions are possible taken by the firm is either cooperative or non-cooperative. Based on the resulting matrix, calculate the possible discount factor value the two firms continue to work together.
In: Economics
The mean cost of domestic airfares in the United States rose to an all-time high of $380 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $545 or more (to 4 decimals)?
b. What is the probability that a domestic
airfare is $255 or less (to 4 decimals)?
c. What if the probability that a domestic
airfare is between $320 and $490 (to 4 decimals)?
d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)
In: Math