Supply: logP= -15.00+1.50 logQ

Demand: logP=5020-0.75 logQ

1. Create a table as shown. The first column contains values of Q from 500 to 10,000, in intervals of 500

2. Plot the supply and demand on the diagram. Label right X and Y axes

New supply: logP=-15.00+1.50 logQ+0.90

1. Create 2 new columns of‘New supply (log P)’ and 'new supply (P) for the new supply

2. Add the new supply curve to the existing diagram. Label the new supply curve

(1)A US based MNC plans to invest in a new project EITHER in US or in Mexico. The new project is expected to take up a quarter of the firm’s total investment fund. The balance of the corporation’s investment is exclusively in an existing US project. The features of the proposed new project are as follows:

                                                          Existing US project US project (new) Mexico project (new)

Expected rate of return E(R) 10% 15% 15%

Standard deviation of E(R) 0.10 0.11 0.12

Correlation of returns from new

project with returns on existing

US project - 0.95 - 0.05

Based on considerations of risk and return, determine the portfolio the MNC should choose if the goal is to generate more stable returns.

The collections library has a class TreeSet (java.util.TreeSet). It is another parameterised class which is an example of a sorted set. That is, elements in this set are kept in order. Construct classes Person and PersonCompator to make the following code successfully compile and run. This method checks if Person objects are correctly ordered by their ages (age is the only attribute of Person). PersonComparator is required to implement interface Comparator (java.util.Comparator). Comparator is another parameterised interface -- parameterization is common in Java.

Set<Person> persons = new TreeSet<Person>(new PersonComparator());

persons.add(new Person(32));
persons.add(new Person(17));
persons.add(new Person(13));
persons.add(new Person(35));

Iterator<Person> iter = persons.iterator();
while (iter.hasNext()) {
  System.out.println(iter.next());
}

According to the National Association of Colleges and Employers, the 2015 mean starting salary for new college graduates in health sciences was $51,541. The mean 2015 starting salary for new college graduates in business was $53,901. † Assume that starting salaries are normally distributed and that the standard deviation for starting salaries for new college graduates in health sciences is $11,000. Assume that the standard deviation for starting salaries for new college graduates in business is $17,000.

(a)

What is the probability that a new college graduate in business will earn a starting salary of at least $65,000? (Round your answer to four decimal places.)

(b)

What is the probability that a new college graduate in health sciences will earn a starting salary of at least $65,000? (Round your answer to four decimal places.)

(c)

What is the probability that a new college graduate in health sciences will earn a starting salary less than $46,000? (Round your answer to four decimal places.)

(d)

How much would a new college graduate in business have to earn in dollars in order to have a starting salary higher than 99% of all starting salaries of new college graduates in the health sciences? (Round your answer to the nearest whole number.)

$

Retlaw Corporation (RC) manufactures time-series photographic equipment. It is currently at its target debt–equity ratio of 0.75. It’s considering building a new $40 million manufacturing facility. This new plant is expected to generate after-tax cash flows of $7.6 million in perpetuity. The company raises all equity from outside financing. There are three financing options:

1. A new issue of common stock: The flotation costs of the new common stock would be 9% of the amount raised. The required return on the company’s new equity is 16%.
2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 4% of the proceeds. If the company issues these new bonds at an annual coupon rate of 8.0%, they will sell at par.
3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of 0.170. (Assume there is no difference between the pre-tax and after-tax accounts payable cost.)

What is the NPV of the new plant? Assume that RC has a 35% tax rate.

Retlaw Corporation (RC) manufactures time-series photographic equipment. It is currently at its target debt–equity ratio of 0.75. It’s considering building a new $40 million manufacturing facility. This new plant is expected to generate after-tax cash flows of $7.6 million in perpetuity. The company raises all equity from outside financing. There are three financing options:

A new issue of common stock: The flotation costs of the new common stock would be 9% of the amount raised. The required return on the company’s new equity is 16%.

A new issue of 20-year bonds: The flotation costs of the new bonds would be 4% of the proceeds.

If the company issues these new bonds at an annual coupon rate of 8.0%, they will sell at par. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of 0.170. (Assume there is no difference between the pre-tax and after-tax accounts payable cost.).

What is the NPV of the new plant? Assume that RC has a 35% tax rate.

Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt−equity ratio of .80. It’s considering building a new $50 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $6.2 million in perpetuity. The company raises all equity from outside financing. There are three financing options: 1. A new issue of common stock: The flotation costs of the new common stock would be 8 percent of the amount raised. The required return on the company’s new equity is 14 percent. 2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 4 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 8 percent, they will sell at par. 3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .15. (Assume there is no difference between the pretax and aftertax accounts payable cost.) What is the NPV of the new plant? Assume that PC has a 35 percent tax rate.

Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .60. It’s considering building a new $65 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $9.4 million in perpetuity. The company raises all equity from outside financing. There are three financing options:

1. A new issue of common stock: The flotation costs of the new common stock would be 8 percent of the amount raised. The required return on the company’s new equity is 14 percent.

2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 4 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 8 percent, they will sell at par.

3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .15. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

What is the NPV of the new plant? Assume that PC has a 21 percent tax rate.