Assume that on a recent day, the September 2019 S&P Index futures contract (i.e., the S&P contract which expires in September) closed at 2890, up 7 points on the day. The value of the contract is set at 250 × the index.

When you bought the contract, you had to put up initial margin of $35,000. The maintenance margin is $31,000. At what contract price will you get a margin call?
Explain.

A wire coil of 35 turns has a cross-sectional area of 12 cm2. The coil is placed in a uniform field of a large magnet with B = 0.32 T. The coil is suddenly rotated 90 o from an orientation parallel to the field to one perpendicular to the field. The time to flip the coil is 0.47 s. What is the magnitude of the average emf produced?

What will be the average current produced if the circuit of the coil is closed and the resistance is 80 ohm?

You work at the equity research department of a large investment bank and your task is to determine the value of the company Example.com using the WACC method. You have the following estimates for Example.com’s yearly financials for the year 2018.

a. Net Income is £300 million.

b. The corporate tax rate is 25%.

c. The interest expense is £100 million. d. Depreciation is £150 million.

e. Capital expenditure is £200 million.

f.    Net working capital in December 2017 is equal to £350 million and net working capital in December

2018 is equal to £400 million.

g. Total unlevered free cash flows are expected to grow at a rate of 30% per year until December 2020, and then the growth rate will drop to 4% per year forever.

As Example.com is not public yet, you have to estimate its cost of capital using a comparable firm

Model.com. You have the following information for the comparable:

–    The debt-to-equity ratio (D/E) of Model.com is expected to remain constant at 0.5 and its debt beta is zero.

–    The equity beta of Model.com is 1.2.

Assume the CAPM relation holds for equity capital (not necessarily for debt), the risk-free rate is 4%, and the expected market risk premium is 6%.

The debt-to-equity ratio (D/E) of Example.com is expected to remain constant at 1, its debt beta is zero, and its (pre-tax) cost of debt is 4.8%.

a. Forecast the unlevered free cash flows of Example.com in 2019 and 2020.

b. Estimate the after-tax weighted average cost of capital (WACC) for Example.com. c. What is the enterprise value of Example.com at the beginning of 2019? You may

assume that all cash flows occur at the end of each year.

You work at the equity research department of a large investment bank and your task is to determine the value of the company Example.com using the WACC method. You have the following estimates for Example.com’s yearly financials for the year 2018.

a. Net Income is £300 million.

b. The corporate tax rate is 25%.

c. The interest expense is £100 million. d. Depreciation is £150 million.

e. Capital expenditure is £200 million.

f.    Net working capital in December 2017 is equal to £350 million and net working capital in December

2018 is equal to £400 million.

g. Total unlevered free cash flows are expected to grow at a rate of 30% per year until December 2020, and then the growth rate will drop to 4% per year forever.

As Example.com is not public yet, you have to estimate its cost of capital using a comparable firm

Model.com. You have the following information for the comparable:

–    The debt-to-equity ratio (D/E) of Model.com is expected to remain constant at 0.5 and its debt beta is zero.

–    The equity beta of Model.com is 1.2.

Assume the CAPM relation holds for equity capital (not necessarily for debt), the risk-free rate is 4%, and the expected market risk premium is 6%.

The debt-to-equity ratio (D/E) of Example.com is expected to remain constant at 1, its debt beta is zero, and its (pre-tax) cost of debt is 4.8%.

a. Forecast the unlevered free cash flows of Example.com in 2019 and 2020.

b. Estimate the after-tax weighted average cost of capital (WACC) for Example.com. c. What is the enterprise value of Example.com at the beginning of 2019? You may

assume that all cash flows occur at the end of each year.

The concept of returns to scale has been used by business managers in order to increase the production efficiency to assess the productivity of organizational inputs like labor, machinery and equipment, and even technological innovation.

a. Describe the concept of returns to scale (RTS). Is it a short-run (SR), or long-run (LR) phenomenon?

b. List and describe the three types of RTS. Give an example each type of RTS (Increasing Returns to scale-IRTS, Constant returns to scale-CRTS, and Decreasing Returns to scale-DRTS).

c. What difficulties might a growing firm encounter as it grows in the size of its operation.

d. What other factor(s) beyond the production process might impact the growth and profitability of an organization that managers have to consider to scale up their production process?

Which of the following is NOT a source of monopoly power?

Select one:

a.

government regulations prohibiting entry of new firms

b.

decreasing marginal costs

c.

innovation

d.

economies of scale

An example of a monopoly would be:

Select one:

a.

a gasoline service station in Los Angeles.

b.

a sole provider of electrical power in a city.

c.

a grocery store in Chicago.

d.

Walmart.

Natural monopolies:

Select one:

a.

produce the optimal quantity of output, unlike other monopolies.

b.

exist when one firm can produce the market output at a lower cost than two or more firms.

c.

generally experience large diseconomies of scale, leading to production inefficiencies and work stoppages.

d.

face market demand curves that are perfectly elastic.

Threaded Discussion:

Technology Technological changes have led to economic growth. Just ask the ticket person at the Thruway toll booth... unless of course you use EZpass. Then, just wave to the few remaining toll collectors as you whiz by. I drove through New Jersey in December and 1 booth allows you to continue travel at 60 MPH while going through.) How has this led to growth? More travelers on the highway with less congestion. More goods and services can travel to and fro faster. Costs? Sure it's expensive for that technology. Savings? Some by reducing labor at the toll booths. The good news? Someone has to design the new technology, so they are hiring.

Now, you come up with your own technological innovation that has led to economic growth.

The US health care industry is immense, complex and dynamic. Every country faces the decisions of what services should be produced, how they should be produced, how they should be distributed, and how to allow for growth and innovation? Comment on how these decisions are currently being made in the United States? What are the various purposes that prices served? Can you provide an example of how a particular purpose of price has affected an organization you are familiar with? Once your material is posted, be sure to review and comment on the materials that at least two of your peers have located. Please note: resources cannot be duplicated, so be sure to get into the conversation early! Your initial post to the given topic of discussion should contain a minimum of 2–3 peer-reviewed references.

1. One of the major themes of the course thus far has been the double-edged nature of technology, scientific approaches, and “modernity. On one hand these concepts helped bring the United States into the modern world; spurring innovation, firing the modern industrial economy, and largely building the society that still is the basis for this country today. On the other, technology and scientific approaches inflicted terrible consequences as well; fueling racism, driving conquest, and making war much more costly. In your essay, first explain why “modernity” and the thinking that drove it presented so many potential pitfalls. Then provide three concrete examples that illustrate how technology, scientific approaches and modern thinking manifested in dangerous and even regressive ways. (Focusing on the Gilded Age, Imperialism, World War I, and the Twenties may be helpful here)

Firms Behavior in Labor Market

a- We are interested in the causal relationship between units of labor demanded by firm (??) and price of firm’s output (???????). What factors do we need to hold fixed to be able to correctly hypothesize about the causal relationship between the two variables? Name all of them. Holding those factors constant, do you expect ?? to increase or decrease as a result of an increase in ???????? Explain and draw your answer on a diagram where the horizontal axis refers to ?? and the vertical axis refers to ???????.

b- Assume that a labor-augmenting technological innovation happens in this market. How the graph you drew in part (a) will be affected as a result?

c- Assume that the raw materials that are used in the production of the firm’s output become more expensive. How the graph you drew in part (a) will be affected as a result?

You have been promoted to test team leader
However, the previous team leader was removed for poor performance and your manager wants you to improve the morale and efficiency of the team, as previously deadlines have been missed.
Her key points are; lack of innovation, poor quality control, missing goals and poor communication with the other teams.
She has also allocated you $500 for you to use on team building if you like.

From your notes from today and using wider research, how would address this challenge, what steps would you take, what would be your goals for the first month?

Provide your answer in a word document (350-500 words). You are encouraged to incorporate wider research and diagrams that may support your plan.