Theresa Nunn is planning a​ 30-day vacation on Pulau​ Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit​ (RM) is RM1,043​/day. The Malaysian ringgit presently trades at RM3.1350​/$. She determines that the dollar cost today for a​ 30-day stay would be $9,980.86. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living. Malaysian inflation is expected to be 2.7191​% ​annum, while U.S. inflation is expected to be 1.252​%.

a. How many dollars might Theresa expect to need one year hence to pay for her​ 30-day vacation?

b. By what percent will the dollar cost have gone​ up? Why?

Theresa Nunn is planning a​ 30-day vacation on Pulau​ Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit​ (RM) is RM1,043​/day. The Malaysian ringgit presently trades at RM3.1350​/$. She determines that the dollar cost today for a​ 30-day stay would be $9,980.86. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living. Malaysian inflation is expected to be 2.7357​% ​annum, while U.S. inflation is expected to be 1.22​%.

a. How many dollars might Theresa expect to need one year hence to pay for her​ 30-day vacation?

b. By what percent will the dollar cost have gone​ up? Why?

You are tasked with estimating the cost of capital for a firm. The risk-free rate is 4%, the expected rate of return on the market is 15.8%. Now, another similar company (similar unlevered cost of capital) has a debt-to-equity ratio of 1 to 3. It has a debt beta near zero and an equity market-beta of 1.5. Your own firm has more debt, for a debt-to-equity ratio of 1 to 1, with a debt beta of 0.1. What is a good estimate for your firm's cost of capital (WACC)?

Example: agency problem between stockholders and bondholders – asset substitution (over-investment problem)

A firm is at the verge of bankruptcy. It has outstanding debt of $100k, and its total assets amount to also $100k only. (Amount equity=0) The debt has a 10% annual interest, and the firm is confronted with the following two mutually exclusive projects with their respective initial and terminal cash flows.

CF=Cash flow

CF₀ =at t=0

Assuming information asymmetry (information is not equally distributed, the stock holder (in the board) within it the firm know more about the firm rather then the bondholder (not on the board)) exists between stockholders and bondholders at t=0. Else, bondholders may choose to liquidate the firm at t=0.

Which project will the stockholders instruct the managers to accept? Why?

Expected payoff for project A =

Expected payoff for project B =

Expected bondholders’ payoff for project A =

Expected bondholders’ payoff for project B =

Expected stockholders’ payoff for project A =

Expected stockholders’ payoff for project B =

Soon to be famous, Texas Smokers, a locally owned business and manufacture of barbeque smokers wants to calculate its breakeven point for its business. Its Classic smoker sells for $335 with a unit variable cost of $235. The fixed cost is $57,000.

- What is the unit contribution margin ($)?

-What is the breakeven volume?

-What is the breakeven revenue?

-If 700 units built, what is the profit?

- If the price is raised by $50, what is the new breakeven volume?

- If the variable cost per unit is raised by $25, what is the new breakeven volume? Use the original selling price.

predict the challenges that a migratory bird might face that spends the winter near the equator and the summer (i.e., the breeding season) near the arctic nowadays.

1) What you have been learning about The cost classification, Labor cost, ABC Costing. How do you think this knowledge could help you to be an effective hospitality manager in the future? (in 200 words minimum).

2)  Method of apportioning costs to the cost centers of:

- Employee’s holiday pay

- Rooms division manager’s salary

- Electrical power costs

- Cost of servicing the hotel’s service lifts or elevators

- Fee paid to a professional consultant for advice on fire regulation procedures.

In 2 or 3 sentences explain why you are choosing the respective method of apportioning such costs to the cost centers.

3) You have learned the application of ABC (Activity-Based Costing) in a hotel set-up. In 300 words minimum, discuss how you can apply ABC costing in a restaurant business. Be specific about the functional departments in the business. Give examples.

In 2017, a website reported that only 10% of surplus food is being recovered in the food-service and restaurant sector, leaving approximately 1.5 billion meals per year uneaten. Assume this is the true population proportion and that you plan to take a sample survey of 575 companies in the food service and restaurant sector to further investigate their behavior.

(a)

Show the sampling distribution of

p,

the proportion of food recovered by your sample respondents.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -2.9 to about 3.1.
• The curve enters the viewing window near -2.9 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.1.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 3.1.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about 0.06 to about 0.14.
• The curve enters the viewing window near 0.06 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.10.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.14.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -0.04 to about 0.04.
• The curve enters the viewing window near -0.04 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.00.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.04.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -0.03 to about 0.05.
• The curve enters the viewing window near -0.03 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.01.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.05.

(b)

What is the probability that your survey will provide a sample proportion within ±0.03 of the population proportion? (Round your answer to four decimal places.)

(c)

What is the probability that your survey will provide a sample proportion within ±0.015 of the population proportion? (Round your answer to four decimal places.)