e. Suppose that your company hires an economist to analyze passenger demand. The economist discovers two distinct classed of passengers. The first class is comprised of business travelers who must travel this route for their companies. The demand function for business travelers is QB = 1200 - 0.2PB. The second class is comprised of people on vacation. Their demand function is QV = 800 - .8PV. Also, assume that your company can price-discriminate between the classes of passengers. Using the original cost function, determine the ticket prices for each class of passenger. How many business and vacation travelers will sail on your ship at these prices?

1. Barney and Betty are purchasing their first house. They expect to put down $58,000 (gifts from their wedding, some savings, inheritance from grandparents, and an accident settlement) which will be the 25% down payment their mortgage broker says the bank needs to finance the purchase. They are going to take out a 4.45%, 20-year fixed mortgage on the balance.
   1. How much is the purchase price of the house?

2. How much will they be financing on the mortgage?

3. What will their monthly payment amount be?

4. After 1-year, how much interest will they have paid on the loan?

5. After 1-year, how much principal will they have paid on the loan?

WayFast Company has just opened a new plant to produce a folding camp cot. Below are the data obtained during the first month of the plant’s operation in April:

Units produced 1,000

Units sold 800

Unit selling price $200

Unit variable selling expense $4

Total fixed selling expense $24,000

Unit direct materials cost $35

Unit direct labour cost $27

Unit variable MOH $6

Total fixed MOH $20,000

How much is the net income under variable costing in April compared with that under absorption costing?

Problem 15-12

Below is a list of prices for zero-coupon bonds of various maturities.

a. A 9.6% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be? (Round your answer to 2 decimal places.)

b. If at the end of the first year the yield curve flattens out at 7.9%, what will be the 1-year holding-period return on the coupon bond? (Round your answer to 2 decimal places.)

Suppose that a firm’s recent earnings per share and dividend per share are $2.85 and $2.00, respectively. Both are expected to grow at 12 percent. However, the firm’s current P/E ratio of 21 seems high for this growth rate. The P/E ratio is expected to fall to 17 within five years.

Compute the dividends over the next five years

Compute the value of this stock price in five years.

Calculate the present value of these cash flows using a 14 percent discount rate.

Problems 9-11 are based on the following information: Consider a stock that will pay a $2 dividend per year for 10 years (from t=1 till t=10) after which the dividends are expect to increase at the constant growth rate of 3% per year (so, at=11 the dividend will be 2*1.03=$2.06, at t=12 it will be 2.06*1.03, etc. ) and the required return on the stock is 11%

Problem 9: Find the stock price today.

Problem 10: Find the capital gain yield during the first year:

Problem 11: Find the dividend yield during the 15th year

SANoresta Inc, produces and sells cosmetic products. The company has just begun manufacturing a new line of moisturizer. The following cost and revenue data relate to February, the first month of production:

Determine the per unit cost under both variable costing and absorption costing and prepare the income statement for each costing method.

Price per unit is $52

1. David raised working capital from local investors by issuing bonds. The bonds, which have a face value of $40,000, were sold on July 1st, 2018. They have a coupon rate of 7.40 percent and pay interest monthly for three years with the first payment due on August 1st, 2018. The last payment, which includes repayment of principal, is July 1st, 2021. David’s investors agreed on an issue price of 106.

Required: Prepare journal entries to record all transactions and adjustments for the year ending December 31, 2018 (record all of the entries in a single sheet).

In this unit you will be completing the first two sections of a Strategic Marketing Plan. This plan is to be based on your New Shoes Simulation company. Marketing Plan Section I: Situation Analysis (Internal and Environmental Analysis) The internal analysis (company history) Market Description (competitor's analysis) Current Marketing Mix Description/Situation ( Existing Product, Price, Distribution, Promotion) The environmental analysis (SWOT- Strengths, Weaknesses, Opportunities, Threats) Marketing Plan Section II Objectives and issues: at least 2 objectives (specific and measurable) Marketing Strategy: Branding Positioning Target Market (Market Segmentation)

This is for Marketing

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.