1-Consider two firms facing the Onsidering the following quetion can you please help me in solving the following Q- demand curve P = 20 – 5Q. The firms’ cost functions are MC1=MC2=10

. b. Determine the total profit-maximizing quantity, if the two firms collude.

c. Graphically show the Cournot equilibrium point and collusion curve.

d. Use the Stackelberg model to determine the equilibrium point if Firm 1 sets its output first and then firm 2.

e. Use the Bertrand model and explain what price will each firm choose, and how much profit will each earn?

The Change Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,300 every six months over the subsequent eight years, and finally pays $2,600 every six months over the last six years. Bond N also has a face value of $20,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 12 percent compounded semiannually. What is the current price of Bond M and Bond N?

Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $3,100 every six months over the subsequent eight years, and finally pays $3,400 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 12 percent compounded semiannually. What is the current price of bond M and bond N?

Boom and Fall (B&F) expects to grow its business in the first 3 years and then the business expects the growth to decline after. The company just paid its annual dividend of $1 per share and is planning to increase its annual dividend by 10% for the next 3 years, and then the dividend will decline at an annual rate of 4% forever.

What is the value of B&F stock in one year if the required return is 12%?

What would be the impact on B&F stock price if the business growth will not decline after 3 years, therefore management would maintain the same dividend as that of year 3? Explain.

Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,600 every six months over the subsequent eight years, and finally pays $2,900 every six months over the last six years. Bond N also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 10 percent compounded semiannually.

What is the current price of Bond M and Bond N?

The following information is for the Mulligan Company for 2019. The company sells just one product:

Mulligan Company sold products at a fixed price of $120 per unit during this period.

Calculate gross profit for 2019 using the periodic method and last-in, first-out method.

The gross profit is _____________. (provide a number with no dollar sign, no thousand separator.)

The following transactions pertain to Year 1, the first-year operations of Baird Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions.

1. Acquired $4,000 cash by issuing common stock.

2. Paid $700 for materials used to produce inventory.

3. Paid $1,830 to production workers.

4. Paid $862 rental fee for production equipment.

5. Paid $110 to administrative employees.

6. Paid $120 rental fee for administrative office equipment.

7. Produced 320 units of inventory of which 230 units were sold at a price of $13 each.

Required

Prepare an income statement and a balance sheet in accordance with GAAP

Answer two of the following three Problems

Problem 1

Company:                        XYZ Company

Date of bonds:                January 1, 2019

Term:                               4 years

Face (Par) Value:            $1,000

Stated interest rate:         12%

Effective interest rate:    10%

Interest payment dates on January 1 and July 1

1. Compute the market price of the bonds and journalize the issuance of the bonds.

2. Prepare a schedule to amortize the premium or discount using the effective interest method of amortization for the first year and journalize the entries to record the interest payment on July 1, 2019 and January 1 2020.

3. Interest expense for the year ended December 31, 2019 is $______________.

1. For the first year, the average smart phone was approximately $250, and sales for that year were forecast to be 997.7 million. For the second year the average smart phone was approximately $200, and sales for that year were forecast to be 1401.3 million. A) Assume that the quantity of smart phones sold each year, q (in millions), is the linear function of price per smart phone, p (in US dollars). Write an equation for q as a function of p. B) Explain, in the context of sales, why it is reasonable that the slope of your linear function is negative. C) In the context of smart phone sales, what is the significance of the verticle axis intercept for your linear function?