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Suppose the full-employment level of realoutput ( Q ) for a hypothetical economy is $250 and the pricelevel ( P ) initially is 100. Use the short-run aggregate supplyschedules below to answer the questions that follow: [Refer the attachment]a. What will be the level of real output in the short run ifthe price level unexpectedly rises from 100 to 125 becauseof an increase in aggregate demand? What if theprice level unexpectedly falls from 100 to 75 because ofa decrease in aggregate demand? Explain each situation,using figures from the table.b. What will be the level of real output in the long runwhen the price level rises from 100 to 125? When itfalls from 100 to 75? Explain each situation.c. Show the circumstances described in parts a and b ongraph paper, and derive the long-run aggregate supplycurve.

You are given this account for a bank: [Refer the attachment]The required reserve ratio is 10 percent.a. How much is the bank required to hold as reserves given itsdeposits of $3,500?b. How much are its excess reserves?c. By how much can the bank increase its loans?d. Suppose a depositor comes to the bank and withdraws $200in cash. Show the banks new balance sheet, assuming thebank obtains the cash by drawing down its reserves. Does thebank now hold excess reserves? Is it meeting the requiredreserve ratio? If not, what can it do?

E24-8 As sales manager, Terry Dewitt was given the following static

budget report for selling expenses in the Clothing Department of Garber

Company for the month of October.GARBER COMPANYClothing DepartmentSelling Expense Budget ReportFor the Month Ended October 31, 2010AND SO ONAs

a result of this budget report, Terry was called into the presidents

office and congratulated on his fine sales performance. He was

reprimanded, however, for allowing his costs to get out of control.

Terry knew something was wrong with the performance report that he had

been given. However, he was not sure what to do, and comes to you for

advice.Instructionsa) Prepare a budget report based on flexible budget data to help Terry.b) Should Terry have been reprimanded?

Present value

calculations :

OBrien Corporation issues $8,000,000-par value, 8 percent

semiannual coupon bonds maturing in 20 years.

The market initially prices these bonds to yield 6 percent compounded

semiannually.

Required:

(a) Compute the issue of these bonds.

(b) Compute interest expense for the first six-month period.

(c) Compute interest for the second six-month period.

(d) Compute the book value of the bonds after the second

six-months period.

Explain the Modigliani and Miller models of capital structure both with and without corporate income taxes, specifically, explain relationship between debt leverage and the value of the firm and between debt leverage and the cost of capital.39674.7595825231

UNIVERSITY OF ESSEX

ESSEX BUSINESS SCHOOL

BE110 FINANCIAL REPORTING AND ANALYSIS

2011/2012 SPRING TERM ASSIGNMENT

The following are the financial statements for

Blacksea plc for the years ended 30 June 2009 and 2010:

Statements

of financial position as at 30 June

In what ways is the t distribution similar to the standard normal

distribution? In what ways is the t distribution different from the

standard normal distribution? How does the formula for the t test differ

from the formula for the z test?

2. Choose a variable. Before collecting the data, decide what a likely average might be, then complete the following:

a. Write a brief statement of purpose of the study

b. Define the population

c. State the hypotheses for the study

d. Select an a value

e. State how the sample was selected

f. Show the raw data

g. Decide which statistical test is appropriate and compute the test statistic (z or t). Why is the test appropriate?

h. Find the critical values(s)

i. State the decision

j. Summarize the results.

You may obtain raw data from the random number table in the appendix

section of your text or from any other sources, including sources on

the World Wide Web.

While there is a degree of differentiation

among general merchandise retailers like Target and Kmart, weekly

newspaper circulars announcing sales provide evidence that these firms

engage in price competition. This suggests that Target and Kmart

simultaneously choose to announce one of two prices for a given product:

a regular price or a sale price. Suppose that when one firm announces

the sale price and the other announces the regular price for a

particular product, the firm announcing the sale price attracts 50

million extra customers to earn a profit of $5 billion, compared to the

$3 billion earned by the firm announcing the regular price. When both

firms announce the sale price, the two firms split the market equally

(each getting an extra 25 million customers) to earn profits of $1

billion each. When both firms announce the regular price, each company

attracts only its 50 million loyal customers and the firms each earn $3

billion in profits. If you were in charge of pricing at one of these

firms, would you have a clear-cut pricing strategy? If so, explain why.

If not, explain why not and propose a mechanism that might solve your

dilemma.

Estimate the following products or quotients.

17 11/12 divided by 6 1/10

Define each of the following terms:a. Baumol modelb. Total carrying cost; total ordering cost; total inventory costsc. Economic ordering quantity (EOQ); EOQ model; EOQ ranged. Reorder point; safety stocke. Red-line method; two-bin method; computerized inventory control systemf. Just-in-time system; outsourcing

Do Brands Have Finite Lives? Often, after a brand begins to slip in the marketplace or disappears altogether, commentators observe, All brands have their day, implying brands have a finite life and cannot be expected to be leaders forever. Other experts contend brands can live forever, and that their long-term success depends on marketers skill and insight of the marketers involved. Take a position: Brands cannot be expected to last forever versus there is no reason for a brand to ever become obsolete.

Breakeven lease payment43. The Garfield Group leases office space. It recently offered one of itstenants a long-term lease where the company would pay $20,000 at the endof each of the next seven years (t = 1, 2, 3, 4, 5, 6, and 7). The tenanthas instead proposed to make four equal payments beginning four years fromnow (t = 4, 5, 6, and 7). Garfield is willing to accommodate the tenant,but wants the present value of its rent payments to be the same as theyare under the 7-year lease. Garfield earns 10.25 percent on itsalternative investments. Assume that there are no taxes. What should bethe size of the lease payments under the tenants proposal?a. $35,000.00b. $40,728.75c. $41,048.09d. $45,255.51e. $57,626.83ROI of bond with warrants44. Taylor Technologies recently issued 12-year bonds with 20 warrantsattached. The bonds were sold at par ($1,000). In return for theirinvestment, bondholders receive $70 in interest at the end of each of thenext 12 years plus $1,000 at the end of 12 years. The warrants have anexercise price of $30 a share, and expire in 10 years. The stock currentlysells for $15 a share and the price is expected to increase 12 percent ayear. Assuming that the warrants are not exercised before the end of the10-year period, what is the investors expected rate of return on thisinvestment?a. 7.00%b. 8.16%c. 8.96%d. 9.18%e. 12.00%

Two candidates, A and B, compete in an election. Of the n citizens, k support the candidate A and m = n k support B. Each citizen decides whether to vote, at a cost, for the candidate she supports, or to abstain. A citizen who abstains receives a payoff of 2 if the candidate she supports wins, 1 if the candidate she supports ties for ?rst place, 0 if this candidate loses. A citizen who votes receives payoff 2 c, 1 c, and -c in these three cases where 0 < c < 1 is a constant. Assume that k < m. 1 (a) Show that the game has no pure Nash equilibria(b) Show that there is a value 0 < p < 1 such that the game has a mixed NE in which every supporter of Avotes with probability p, k supporters of B vote with certainty (i.e., with probability 1), and the remainingm k supporters of B abstain. (Note that if all supporters of A vote with probability p, the probability that all of them vote is pk, and the probability that exactly k 1 of them vote is kpk-1(1 p).) give me 3 examples of solved problems according to potential difference consider the experiment of tossing a coin 4 times. What is the probability of each outcome? DIA & UREA ARE TWO FERTILIZERS DIA CONSIST OF N,P&K AND UREA CONSIST ONLY OF N&P A MIXTURE OF DIA AND UREA IS PREPARED IN WHICH THE RATIO OF N,P&K IS 26%,68%&6% RESPECTIVELY.THE RATIO OF N,P&K IN DIA IS 20%,70%&10% RESPECTIVELY THE RATIO OF N,P IN THE UREA IS????