Question 2
1.with the diagrams differentiate between price ceiling and price floor as government intervention measures to market failure.
Support with references to the next above
2.use Diagram to explain how a so -called black market can develop when the government intervenes in the price mechanism by fixing prices
In: Economics
Use this information to answer the next two questions.
| Price Ceiling | $11,500,000 |
| Target Price | $10,850,000 |
| Estimated Cost | $10,000,000 |
| Target Profit (8.5%) | $850,000 |
| Final Cost | $9,600,000 |
| Difference | $400,000 Under Run |
A) Consider the side of the supplier. What is the cost plus profit for a cost reduction of $80,000 if the sharing arrangement is 80/20?
B) What is the cost plus profit if there is a cost over run of $70,000 and the sharing arrangement is 75/25?
In: Accounting
Relate price changes in bond markets to price changes in stock markets. Explain why prices move or do not move together.
In: Economics
In: Computer Science
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,080,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $605,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $380,000 per year in before-tax operating costs, mainly labor.
Campbell’s marginal tax rate is 35%.
In: Accounting
Explore of each of the questions below and provide your perspective :
In: Economics
The Rabe Company has just gone public under a firm commitment agreement and sold (i.e. floated) 4.1 million shares to the public. Rabe stock went public (i.e. begin to trade over the exchange) at $34.40. The first day closing price of Rabe stock was $41 per share. Rabe paid $905,000 in legal and other direct costs, $250,000 in indirect costs, and an underwriter’s fee of $2.40 per share.
Required:
i. Compute the net amount raised by the Boeing Company as a result of the IPO.
ii. Compute the Underpricing cost or money left on the table.
In: Finance
XYZ Pharmaceutical, Inc. just got FDA approval for their new drug, Viagrina. The company has never paid a dividend, but they expect to pay one for the first time by the end of the year. The expected dividend is $3.00 per share and the company expects that dividend to increase at a rate of 20% for five years. After that, XYZ expects to see its dividend growth limited by the growth rate the US economy, which on average is 4.5% per year. If the required rate of return for other startup pharmaceutical companies like XYZ is 11%, what should be the fair price of XYZ’s stock today?
In: Finance
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448.
Required
1. Prepare January 1, 2017, journal entry to record the bonds’ issuance.
2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense.
3. Determine the total bond interest expense to be recognized over the bonds’ life.
4. Prepare the first two years of an amortization table like Exhibit 14.7 u
In: Accounting
You are the CEO of United Airlines and you have had a pretty difficult month. First, you kicked young women off of a plane because they were wearing yoga pants, then you forcefully dragged a doctor off a plane against his will. While your stock price has mostly rebounded, you a loss of value of $1 billion the day after the incident with the doctor. You know your organization needs a culture change. Apply Kotter’s 8-step model of change,to the United organization – what would be your strategy for remaking the organization? Be as specific as you can.
In: Economics