(a) Discuss the following statement: In the real world there
(a) Discuss the following statement: In the real world there is no industry which conforms precisely to the economists model of perfect competition. This means that the model is of little practical value. (2.5 marks)
Assume an open, mixed economy. That is, foreign trade is par
Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
During the year, Xerox, Inc., experienced an increase in net
During the year, Xerox, Inc., experienced an increase in net fixed assets of $300,000 and had depreciation of $200,000. It also experienced an increase in current assets of $150,000 and an increase in accounts payable and accruals of $75,000. If operating cash flow (OCF) for the year was $700,000, calculate the firm’s free cash flow (FCF) for the year.
Assume a perfectly competitive firm is currently producing 5
Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal $1,250. Based on this information, should this firm continue to operate in the short run? Please explain why your answer is yes or no.
econ questions attached Document Preview: For each of the fo
econ questions attached Document Preview: For each of the following two parts, you must justify your answer. No explanation = no credit. Partially correct explanations=partial credit.a) (10 points) True or false. For the events A and B, if (AnB) = , then the events are exhaustive.b) (10 points) True or false. For two events A and B, if P(A)=.3, P(B)=.25, and P(AUB)=.50, then A and B are mutually exclusive.2. A raffle is being held at a school to raise money for the library. The organizers sell 40 tickets. They will select 4 winning tickets at random for prizes.a) (10 points) How many different combinations of 4 winning tickets can there be?b) (10 points) Suppose you hold 6 tickets. What is the probability that you will win exactly 2 out of the 4 prizes.3. Let the random variable R denote the rate of return on an asset. R has the following pdf. R P(R=r) .3 .05 .2 .20 .1 .20 0 .20 -.1 .15 -.2 .10 -.3 .10 a. (10 points) What is the expected value and variance of R?b. (10 points) You are considering investing $150 in this asset. After 1 year, the value will be $150(1+R). What is the expected value andstandard deviationof the value of your asset in 1 year?4. Suppose the random variable X has a mean of 16 and a variance of 144. Y is a linear transformation of the form Y=a+bX. Y has a mean of 4 and variance 36. Assuming b>0, what are the values of a and b? (Hint: find b first.)5. Suppose cell phones are available in two basic types: Flashy or Dull. Furthermore, suppose cell phone owners fall into two basic categories: Hipsters or Grannies.Let .55 be the probability of being a Hipster. Also, 40% of cell phones are both Flashy and owned by Hipsters. Finally, if a cell phone is owned by a Granny, the probability of it being Dull is .90a) What is the probability that a cell phone is both Dull and owned by a Hipster.b) If a phone is owned by a Hipster, what is the probability it is Flashy.c) What is the probability that… Attachments: ekonomi.doc
Consolidate the results of the following problems in a 2 pag
Consolidate the results of the following problems in a 2 page report in a Microsoft Word document. Do not use Microsoft Excel utilities for this assignment. Using the three quarters moving average, find out the forecasts for 3Q 2010, 4Q 2010, and 1Q 2011. Compute the forecasts for 3Q 2010, 4Q 2010, and 1Q 2011 using exponential smoothing with a smoothing factor of 0.6. Compute the forecasts for all quarters of 2010 using the three quarter weighted moving average, with the most recent data weighted at 0.5, the second-most recent data weighted at 0.35, and the third-most recent data weighted at 0.15. Using the data provided in the above table, explain what forecasting techniques are being used for 2008 and the first two quarters of 2009. Computed the forecasting error using the exponential smoothing technique. Computed the forecasting error using the weighted smoothing average method. On the basis of your calculations, explain which technique provides the most accurate forecast for your company. Explain your answer with critical reasoning. Using the APA format, cite the sources you use on a separate page. Document Preview: Forecasting Exercise You are the supply chain manager for an electronics-manufacturing company. In this assignment, you will use the following data to obtain forecasts for your company through various forecasting techniques. Quarter Forecast Actual Demand Error 4Q 2008 200 220 1Q 2009 220 215 2Q 2009 215 210 3Q 2009 210 220 4Q 2009 220 225 1Q 2010 225 240 2Q 2010 240 255 3Q 2010 260 4Q 2010 270 1Q 2011 Consolidate the results of the following problems in a 2 page report in a Microsoft Word document. Do not use Microsoft Excel utilities for this assignment. Using the three quarters moving average, find out the forecasts for 3Q 2010, 4Q 2010, and 1Q 2011. Compute the forecasts for 3Q 2010, 4Q 2010, and 1Q 2011 using exponential smoothing with a smoothing factor of 0.6. Compute the forecasts for all quarters of 2010 using the three quarter weighted moving average, with the most recent data weighted at 0.5, the second-most recent data weighted at 0.35, and the third-most recent data weighted at 0.15. Using the data provided in the above table, explain what forecasting techniques are being used for 2008 and the first two quarters of 2009. Computed the forecasting error using the exponential smoothing technique. Computed the forecasting error using the weighted smoothing average method. On the basis of your calculations, explain which technique provides the most accurate forecast for your company. Explain your answer with critical reasoning. Using the APA format, cite the sources you use on a separate page. Attachments: Forecasting-E….docx
I have 15 questions to answer which i have attached Document
I have 15 questions to answer which i have attached Document Preview: Question 1 Question 10 A & B Question 11 D & E Question 2 D & E Question 6 A Question 8 C Question 6 E Question 13 A & B Question 6 & 7 E Attachments: Questions-DM-….docx
Studebaker is eligible to put 12,000 before tax dollars each
Studebaker is eligible to put 12,000 before tax dollars each year into a tax deferred annuity (TDA). in order to invest in a TDA, however, he must have his salary reduced, and the case indicates that he can afford a reduction in his spendable income of 3,052 each year without disrupting his lifestyle. one investment option is to increase the amount placed into a TDA each year to the legal maximum of $12,000 and move funds from the money market to cover the resulting shortfall in studebaker spendable income. how much money will he need to transfer each year from the money market? TAX RATE IS 30% I NEED THIS ANSWERED BY TONIGHT.
An organization’s cost of equity can be calculated in a vari
An organization’s cost of equity can be calculated in a variety of ways. Complete the following tasks: Locate ten organizations that currently pay a common stock cash dividend. Go to the Finance Web link provided in the Webliography, enter the ticker symbol of an S&P 500 company in the quote box, and see whether it indicates that the company pays a dividend. Calculate the organizations’ cost of equity using the dividend yield plus growth rate approach and the security market line (SML) model approach. For each organization, show how the cost of equity differs based on the two approaches. Refer to the Web link Finance in the Webliography for information on beta of stocks. Submit your answers in a 2 page Microsoft Word document and your calculations in a Microsoft Excel sheet.
The Genesis operations management team is now preparing to i
The Genesis operations management team is now preparing to implement the operating expansion plan. Previously the firms cash position did not pose a challenge. However, the planned foreign expansion requires Genesis to have a reliable source of funds for both short-term and long-term needs. One of Genesiss potential lenders tells the team that in order to be considered as a viable customer, Genesis must prepare and submit a monthly cash budget for the current year and a quarterly budget for the subsequent year. The lender will review the cash budget and determine whether or not Genesis can meet the loan repayment terms. Genesiss ability to repay the loan depends not only on sales and expenses but also on how quickly the company can collect payment from customers and how well it manages its supplier terms and other operating expenses. The Genesis team members agreed that being fully prepared with factual data would allow them to maximize their position as well as negotiate favorable financing terms. The Genesis management team held a brainstorming session to chart a plan of action, which is detailed here. Evaluate historical data and prepare assumptions that will drive the planning process. Produce a detailed cash budget that summarizes cash inflow, outflow, and financing needs. Identify and compare interest rates, both short-term and long-term, using debt and equity. Analyze the financing mix (short/long) and the cost associated with the recommendation. Since this expansion is critical to Genesis Corporation expanding into new overseas markets, the operations management team has been asked to prepare an executive summary with supporting details for Genesiss senior executives. Working over a weekend, the management team developed realistic assumptions to construct a working capital budget. Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research. Other cash receipt: Rental income $15,000 per month. Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 50 percent of sales. Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase. Selling and marketing expense: Five percent of sales General and administrative expense: Twenty percent of sales Interest payments: Payable in December $75, 000 Tax payments: Quarterly due 15th of April, July, October, and January $15,000 Minimum cash balance desired: $ 25,000 per month Cash balance start of month (December):$15,000 Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit. Dividend payment: None Based on this information, do the following: Using the Cash Budget spreadsheet, calculate a detailed company cash budget for the forthcoming year. Summarize the sources and uses of cash, and identify the external financing needs for the forthcoming two (2) years. Cash Budget Download this Excel spreadsheet to view the companys cash budget. You will calculate the companys cash budget for the forthcoming year using this information. In an executive-level report, summarize the company’s financing needs for the forecast period and provide your recommendations for financing the planned activities. Be sure to comment on the following: a) Your recommended financing solution and cost to the firm: If Genesis needs operating cash, how should it fund this need? Are there internal policy changes with regard to collections or payables management you would recommend? What types of external financing are available? b) Your concerns associated with the firm’s cash budget. Is this a sign of weak sales performance or poor cost control? Why or why not? NOTE: As you complete the m3a2 spreadsheet, you may need to make certain assumptions. For example, you may assume there are no sales prior to the month given. Be sure to state your assumptions so that I am able to see how you arrived at your numbers within the spreadsheet. Attachments: Copy-of-AUO-B….xlsCash-Budget.docx