Park Corporation is planning to issue bonds with a face value of $650,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) 2. Prepare the journal entry to record the interest payment on June 30 of this year. 3. What bond payable amount will Park report on its June 30 balance sheet?
In: Accounting
A group of entrepreneurs want to purchase a rural hotel.
The renovation and purchase of the hotel has an estimated cost of €525,000.
This capital investment will be depreciated consistently over the next 5 years.
It is estimated that there will be 4,000 rooms total occupation per year, at a rate of €100 per room/night. Room occupation will rise by 5% year over year.
Running costs are estimated as €290,000 for the first year and will increase by 5% year over year.
The tax rate is 35%.
Step 1: Calculate the initial free cash flows correctly.
Step 2: If the partners require a minimum return of 8% on their investments, would you recommend that these businessmen buy the hotel? (Assume a continuous increase in cash flow of 1% from the 5th year forwards). Why or why not?
In: Accounting
Mark Bortz Electrical (“MBE”) gets a job to install the systems that will control the bank of eight elevators in a new 20-story hotel built in Richardson, TX. MBE obtains the components from the distributor, installs them without any problems, and moves onto the next job. However, prior to opening, the hotel’s owners find that none of the elevators are working.
An expert hired by the hotel determines the problem is that the wiring was improperly installed by MBE. Another contractor rewires the elevator bank and everything works fine.
Diagnosing and repairing the problem delayed the hotel’s opening by two weeks .The owners make a liability claim against MBE for the lost income incurred as a result of the delay in opening the hotel. Will MBE’s CGL insurer cover this claim?
(Answer based on the CGL policy)
In: Finance
You may need to use the appropriate technology to answer this question.
Tourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure of visitor volume and visitor activity (Orlando Sentinel). Hotel occupancy data for February in two consecutive years are as follows.
| Current Year | Previous Year | |
|---|---|---|
|
Occupied Rooms |
1,470 | 1,458 |
|
Total Rooms |
1,750 | 1,800 |
(b)
What is the estimated proportion of hotel rooms occupied each year?
current previous
(c)
Calculate the test statistic. (Round your answer to two decimal places.)
What is the p-value? (Round your answer to four decimal places.)
p-value =
(d)
What is the 95% confidence interval estimate of the change in occupancy for the one-year period? (Round your answers to four decimal places.)
to
In: Statistics and Probability
It is said that Bed & Breakfast (B&Bs) can contribute to a more ‘authentic’ travel experience for tourists rather than hotel chains. It also provides mutual benefits for both the visitor and the operator. While licensing can be a concern, the HKTB’s hotel rating system being used is also considered not applicable to rate the ‘quality’ of B&Bs for several reasons. If the HKTB’s hotel rating system is applied to rate the B&Bs in Hong Kong, explain how it will disadvantage or advantage the grading of a B&B based on the FIVE key indicators being used in this stage.
A combination of quantitative indicators:
1. Facilities (F&B, IT, Business and Health Related)
2. Location
3. Staff to Room ratio
4. Average Achieved Room Rate
5. Business Mix
In: Operations Management
It is said that Bed & Breakfast (B&Bs) can contribute to a more ‘authentic’ travel experience for tourists rather than hotel chains. It also provides mutual benefits for both the visitor and the operator. While licensing can be a concern, the HKTB’s hotel rating system being used is also considered not applicable to rate the ‘quality’ of B&Bs for several reasons. If the HKTB’s hotel rating system is applied to rate the B&Bs in Hong Kong, explain how it will disadvantage or advantage the grading of a B&B based on the FIVE key indicators being used in this stage.
A combination of quantitative indicators:
1. Facilities (F&B, IT, Business and Health Related)
2. Location
3. Staff to Room ratio
4. Average Achieved Room Rate
5. Business Mix
In: Operations Management
2. Demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100−p, while on non-game-days demand is described by the demand curve q = 60 − 2p.
(a) Suppose that the hotel price on game days is ph = 80. What quantity is demanded at this price?
(b) Find the inverse demand curve on non-game-days. Assuming that the price on game days is ph = 80 as above, what price would induce the same quantity demanded on non-game-days as on game days?
(c) Plot the demand curves on game days and on non-game-days. Pay careful attention to the price and quantity intercepts for both curves.
(d) Assuming the price on non-game-days is as you found in (ii), what is consumer surplus in this market on non-game-days? What is consumer surplus on game days?
(e) Suppose that you encounter the following claim: “Because the hotel price is higher on game days than on non-game-days, consumer surplus in the hotel market must be lower on game days.” What is wrong with this claim?
In: Economics
Demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100−p, while on non-game-days demand is described by the demand curve q = 60 − 2p.
(a) Suppose that the hotel price on game days is ph = 80. What quantity is demanded at this price?
(b) Find the inverse demand curve on non-game-days. Assuming that the price on game days is ph = 80 as above, what price would induce the same quantity demanded on non-game-days as on game days?
(c) Plot the demand curves on game days and on non-game-days. Pay careful attention to the price and quantity intercepts for both curves.
(d) Assuming the price on non-game-days is as you found in (ii), what is consumer surplus in this market on non-game-days? What is consumer surplus on game days?
(e) Suppose that you encounter the following claim: “Because the hotel price is higher on game days than on non-game-days, consumer surplus in the hotel market must be lower on game days.” What is wrong with this claim?
In: Economics
a) In order to determine the average price of hotel rooms in Atlanta, a sample of 61 hotels were selected. It was determined that the average price of the rooms in the sample was $111.9. The population standard deviation is known to be $19. We would like to test whether or not the average room price is significantly different from $110.
Compute the test statistic.
b) In order to determine the average price of hotel rooms in Atlanta, a sample of 61 hotels were selected. It was determined that the test statistic (z) was $-1.01. We would like to test whether or not the average room price is significantly different from $110. Population standard deviation is known to us.
Compute the p-value.
c) In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The test statistic (z) is calculated and it is -1.8.
We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)
In: Statistics and Probability
The following data represent the daily hotel cost and rental car cost for 20 U.S cities during a week in October 2003
CITY HOTEL CARS
San Francisco 205 47
Los Angeles 179 41
Seattle 185 49
Phoenix 210 38
Denver 128 32
Dallas 145 48
Houston 177 49
Minneapolis 117 41
Chicago 221 56
St. Louis 159 41
New Orleans 205 50
Detroit 128 32
Cleveland 165 34
Atlanta 180 46
Orlando 198 41
Miami 158 40
Pittsburgh 132 39
Boston 283 67
New York 269 69
Washington DC 204 40
FOR EACH VARIABLE ( hotel cost and car cost)
a. Compute the mean, median, first quartile, and third quartile)
b. Compute the variance, standard deviation, range, interquartile range, coefficient of Variation
c. Are the data skewed? If so, how?
d. Base don’t he results a) through c), what conclusions can you reach concerning the daily costs of a hotel and rental car
In: Statistics and Probability