On 1 January 2019, Colson Company had 200,000 ordinary shares outstanding with par value of $l each that originally issued at $18 per share. On 1 April 2019, 20,000 ordinary shares were issued at $25 per share and on 1 May, the company issued 5% bonus issue as stock dividend for both ordinary shares and preference shares.

During the year, 30,000 treasury shares were repurchased from the open market at $35 on 1 September 2019. On 1 March 2019, the company issued 200,000 9%, cumulative preference shares of par $1 per share.

Colson also issued $2,000,000 of 8% convertible bonds at face value during 2018 - each $1,000 bond is convertible into 50 ordinary shares. Top executives were granted 30,000 options to buy ordinary shares at the exercise price of $40 if the net income of the company can achieve over $450,000. The beginning and ending market price of the ordinary shares was $38 and $62 respectively during the year 2019.

Net income for the company was $500,000 in 2019, and the relevant corporate tax rate was 40%. At the financial year-end date of 2019, the company declared and paid $5 cash dividends to all ordinary shareholders.

Required: (Answers should be rounded to two decimal places)

(a) Calculate the basic earnings per share for 2019.

(b) Calculate the diluted earnings per share for 2019.

The total cost of the wagons before any discount was taken; the net cost after the trade discount.

The amount of remittance to the nearest cent on May 18.

The amount of remittance to the nearest cent on May 31.

The total cost and individual cost to the nearest cent per wagon after all discounts.

The amount saved by making the two payments.

The breakeven point to the nearest cent for all wagons.

The regular list price per wagon rounded to the nearest cent.

The reduced list price per wagon rounded to the nearest cent.

The total revenue received from the sale of all wagons.

The total amount of operating profit or loss and the percent of cost this amount was (to the nearest tenth percent.

In the table below we present the production possibility for two countries, A and B, who can both produce milk and soda. The number in the cell refers to the amount they can produce if they dedicated 100 per cent of their time to produce that good. So, country A can produce 40 litres of milk at most, and B can produce 20 litres of it at most.

Table – Production Possibility – 100 percent time on each product

1. What is absolute advantage? Who has absolute advantage in milk and in soda?
2. What is opportunity cost? State the opportunity cost of each country for milk and soda.
3. What is comparative advantage? Who has comparative advantage in milk and in soda?
4. Can a country have comparative advantage in both products? Explain why.
5. Presently without specialization, each of them spends 50 per cent of their time producing milk and soda. Show how much each country is producing in a table. Suppose after specialization Country A spends 70 per cent of the time producing milk, while Country B spends 75 per cent of the time producing soda. Will they be better off by trading? What is the minimum price that Country B will accept for soda? What is the maximum price that Country A will pay for Soda? [Hint: the prices are not in Dollar terms but in terms of the other good]

Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under certain conditions choosing projects on the basis of the IRR will not cause any value to be lost because the one with the higher IRR will also have the higher NPV, i.e., no conflict will exist.

Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under certain conditions choosing projects on the basis of the IRR will not cause any value to be lost because the one with the higher IRR will also have the higher NPV, i.e., no conflict will exist.

You have four hard drives. Two of the drives have a failure rate of 1.75% (pf = 0.0175), and the other two have a failure rate of 2.5%. Assume that failures of the hard drives are independent events. (a) What is the probability of failure of your system? (b) Assuming that your quantities of 1.75% and 2.5% drives remain equal (that is, you have n 1.75% and n 2.5% drives), what is the minimum total number of hard drives your system would have to have to exceed a 50% failure rate?

(Note: failure of the system is defined to be the failure of one of the hard drives.)

Conduct the appropriate test of the specified probabilities using the given information. Use

α = 0.05.

The five categories are equally likely to occur, and the category counts are shown in the table

Given:

H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 1/5

H_a: At least one p_i is different from 1/5.

FInd:

Find the test statistic. (Round your answer to two decimal places.)

Χ² = ??

Find the rejection region. (Round your answer to two decimal places.)

Χ² > ??

Consider a locus with two alleles - B and b. B is dominant, while b is recessive. There is no mutation. B has a selective advantage relative to b, so that the fitnesses of the three genotypes are BB = 1, Bb = 1, and bb = 1-s. In this case, s = 0.50, so that bb homozygotes have 50% fitness of heterozygotes and BB homozygotes. If the population has the following genotypic counts prior to selection of BB = 500, Bb = 250, and bb = 250, what is the expected change in the frequency of B after one generation with selection? Please give your answer to two decimal places.

Gaming Corp. produces and sells the “Game-Box 720”, a digital gaming device. The market selling price is $190 per unit.The firm’s regular costs are as follows:

Fixed production costs $1,000

Variable production costs per unit $50

Variable marketing costs per unit sold in the normal market $10

The firm’s production facilities provide it with the capacity to produce a total of 15 units of product per period. Given current market conditions, the firm expects to produce and sell 10 units.As a result of a special order received and accepted last year, Gaming Corp. leased additional production facilities which are available for use this year. For this year, the rent for these leased facilities is $300 and they will provide the company with the capacity to produce an additional 5 units.

1)At the expected level of output, what is the firm’s average production cost per unit?

2)At the expected level of output, what will the firm’s total profit be?

3)During the year, the firm received a special order from Cassar Inc. for 5 units at a price of $130 per unit. Cassar wants to give the devices away next period as a part of an advertising promotion. Should the firm accept or reject the offer?(Provide the calculations that support/justify your answer.)Should the firm accept or reject the offer?

4) Before reaching a decision regarding the Cassar order described above, Gaming Corp. received a second special order from Baiman Corp. Baiman offered to purchase 8 units at a price of$129 per unit. In addition, Gaming Corp. was approached by the company that leased it the additional factory space last year. It offered to cancel Gaming Corp.’s lease for a cancellation fee of $80. What is the maximum profit that Gaming Corp. can achieve?

Assume two firms 1 and 2. The inverse market demand function is given by:             

P=30-(q₁+q₂)

Each firm produces with marginal costs of

MC = 6

Fixed costs are zero.

The next questions refer to the Cournot duopoly.

Question 1 (1 point)

What is Firm 1's total revenue function?

Question 1 options:

Question 2 (1 point)

What is Firm 1's marginal revenue function?

Question 2 options:

Question 3 (1 point)

What is Firm 1's response function?

Question 3 options:

Question 4 (1 point)

If Firm 1 thinks that Firm 2 chooses to supply q₂=10, then Firm 1's profit maximizing quantity would be q₁*=

Question 4 options:

Question 5 (1 point)

If Firm 2 thinks that Firm 1 chooses to supply q₁=7, then Firm 1's profit maximizing quantity would be q₁*=

Question 5 options:

Question 6 (1 point)

In equilibrium, each firm will supply q_i=

Question 6 options:

Question 7 (1 point)

The market price in equilibrium will be P*(q₁+q₂)=

Question 7 options:

Question 8 (1 point)

In equilibrium, each firm's total revenue is equal to TR_i=

Question 8 options:

Question 9 (1 point)

In equilibrium, each firm's total variable cost is TVC_i=

Question 9 options:

Question 10 (1 point)

In equilibrium, each firm's total profit is _i=

Question 10 options:

Question 11 (1 point)

In equilibrium, total consumer surplus is CS=

Question 11 options: