Historically many methods and markets

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 A large publically traded company will receive a major financial benefit from the sell of its stock ________ .Select one:a. each time a shareholder buys or sells the stock b. when the stock is traded on the New York Stock Exchange c. at the initial public offering

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Although money has no intrinsic value, it is demanded throughout society. Among the reasons that money is demanded are:Select one:a. It is not easy to counterfeit.b. It is divisible c. it stores value.

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Bank Of The North (B of N) gave out large loans to many of their customers. After reviewing the bank’s records, B of N sees that the bank is now below the Federal Reserve’s minimum reserve requirement. A member bank, Helper Bank, has excess reserves. B Of N borrows enough money from Helper Bank to reach their reserve requirement. The rate of interest that B of N will pay to Helper Bank for the loan is the ________ rate.Select one:a. intrabank b. institutional c. federal funds

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Bonds are:Select one:a. A partial ownership in a companyb. a way to raise capital that does not need to be repaidc. a formal contract to repay borrowed money with interest at fixed intervals.

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Historically many methods and markets were used to raise capital, but the primary methods that have evolved in modern times are the:Select one:a. land markets and housing markets b. Over the counter markets c. bond markets and stock markets

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If the federal government wanted to find out how much M1 money is in circulation in the US, it would look at which of the following?Select one:a. Savings accounts b. Money market mutual funds c. Demand deposits and other checking accounts

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If you were given the task of totalling all the M2 money in circulation in the US, which of the following would you include in your calculations?Select one:a. 1.Demand deposits and other checking accounts b. Currency c. 2.Savings accounts

Question 8

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One of the ways the Federal Reserve System seeks to stabilize prices is by:Select one:a. controlling the price of goods b. engaging in trade treaties c. regulation of interest rates

Question 9

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Stocks or equity securities are:Select one:a. Debt to the company b. Managed by your local commercial bank c. financial instruments that may include share of a company’s future profits.

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The Federal Reserve lowers the reserve requirement from 7 percent to 6 percent. Consequently banks must set aside less money to meet the reserve requirement. They have more money to lend to their customers and are able to lower the rate of interest they charge. These conditions make it less expensive for people and businesses to borrow money. Because they can borrow more, they can spend more. If people are spending more, prices go up. With this action, the Fed has lessened the likelihood of ________.Select one:a. inflation b. free market c. recession

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The Federal Reserve raises the reserve requirement from 7 percent to 8 percent. Consequently banks must set aside more money and consequently have less money to lend. The result is that the banks will raise the interest rate they charge to their customers. These conditions make it harder and more expensive for people and businesses to borrow money. Because they can’t borrow as much, they can’t spend as much. If people aren’t spending as much, prices don’t go up. With this action, the Fed has lessened the likelihood of ________.Select one:a. recession b. free market c. inflation

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The Queen of England says by royal decree that the British Pound will be the currency of the land and it will be backed by the government as legal tender for all debts public and private. The British Pound is an example of:Select one:a. Commodity money b. Virtual money c. Fiat money

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What are Bonds?Select one:a. a partial ownership in a company b. profit c. debt

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What government entity is responsible for monitoring the U.S. money supply?Select one:a. Federal Trade Commission b. Federal Labor Relations Authority c. Federal Reserve

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What is a reason someone might consider trying Bitcoin?Select one:a. The value of my Bitcoins can vary widely based on supply and demand. b. There is a possibility of fraud or theft. c. One would not have to pay high transaction costs associated with transferring funds through a bank.

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What is a reason you might be hesitant to use Bitcoin?Select one: a. It is less expensive to accumulate than other types of currency. b. I would not need to have a bank account. c. The value of my Bitcoins can vary widely based on supply and demand.

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What is the biggest advantage of borrowing money, such as a loan or a bond, instead of issuing stock in order to raise capital?Select one:a. The interest rate is usually less b. The business owner does not have to worry about legal liability c. The current business owner retains complete ownership of the business

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Why don’t we use the barter system today:Select one:a. Of specialization theory promoted by Adam Smith b. Of the role of commercial banks. c. It is difficult to find two parties that have something they both want to trade.

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You pay your neighbor $100 in exchange for the used washing machine she is selling. Your neighbor puts that $100 into her pocket and takes her family out to the movies and a nice dinner at the end of the week. She still has $20 left after this outing and decides to put the remaining $20 into her savings account. This is an example of:Select one:a. Exchange rate b. Time value of money c. Store of value

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Your large business just issued bonds for $10 million. You are excited about utilizing the new funds to expand. As you create your budgets for the upcoming years you need to keep in mind that your company will need to ________.Select one:a. Find someone who would like to pay $10 million for your bond. b. Pay the interest and a portion of the principal balance to the bank each month for the duration of the bond term. c. Pay interest payments annually and repay the entire $10 million at the end of the bond term.

Hypothesis Testing

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Assignment 2: Discussion

You are a data analyst with John and Sons Company. The company has a large number of manufacturing plants in the United States and overseas. The company plans to open a new manufacturing plant. It has to decide whether to open this plant in the United States or overseas.

What is an appropriate null hypothesis to compare the quality of the product manufactured in the overseas plants and the U.S. plants? Why? How would you choose an appropriate level of significance for your statistical test? What are the possible outcomes and limitations of your statistical test?

 

By Saturday, March 16, 2013, post to the Discussion Area the requested information and analysis.

 

FINC620 – Quiz – Week 1

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1.      Bosio Inc.’s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company’s cost of preferred stock for use in calculating the WACC?

2.      Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company’s outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F = 10%; and the target capital structure is 45% debt and 55% common equity. What is the firm’s WACC, assuming it must issue new stock to finance its capital budget?

3. For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure.

 

4.      Multi-Part 9-1:
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm’s weighted average cost of capital. The balance sheet and some other information are provided below.

Assets  
Current assets $  38,000,000
Net plant, property, and equipment   101,000,000
Total assets $139,000,000
   
Liabilities and Equity  
Accounts payable $  10,000,000
Accruals       9,000,000
Current liabilities $  19,000,000
Long-term debt (40,000 bonds, $1,000 par value)     40,000,000
Total liabilities $  59,000,000
Common stock (10,000,000 shares) 30,000,000
Retained earnings     50,000,000
Total shareholders’ equity     80,000,000
Total liabilities and shareholders’ equity $139,000,000

The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm’s tax rate is 40%.

Refer to Multi-Part 9-1. What is the best estimate of the firm’s WACC?

 

5.      Which of the following statements is CORRECT?

 

6.      S. Bouchard and Company hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D0 = $0.85; P0 = $22.00; and g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $40.00. Based on the DCF approach, by how much would the cost of common from retained earnings change if the stock price changes as the CEO expects?

 

7.      Safeco Company and Risco Inc are identical in size and capital structure. However, the riskiness of their assets and cash flows are somewhat different, resulting in Safeco having a WACC of 10% and Risco a WACC of 12%. Safeco is considering Project X, which has an IRR of 10.5% and is of the same risk as a typical Safeco project. Risco is considering Project Y, which has an IRR of 11.5% and is of the same risk as a typical Risco project.

 

Now assume that the two companies merge and form a new company, Safeco/Risco Inc. Moreover, the new company’s market risk is an average of the pre-merger companies’ market risks, and the merger has no impact on either the cash flows or the risks of Projects X and Y. Which of the following statements is CORRECT?

 

8.      Which of the following statements is CORRECT?

 

9.      Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

 

10.  Which of the following statements is CORRECT? Assume that the firm is a publicly-owned corporation and is seeking to maximize shareholder wealth.

 

2         out of 2 points

11.  Which of the following statements is CORRECT?

 

12.  Multi-Part 9-1:
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm’s weighted average cost of capital. The balance sheet and some other information are provided below.

Assets  
Current assets $  38,000,000
Net plant, property, and equipment   101,000,000
Total assets $139,000,000
   
Liabilities and Equity  
Accounts payable $  10,000,000
Accruals       9,000,000
Current liabilities $  19,000,000
Long-term debt (40,000 bonds, $1,000 par value)     40,000,000
Total liabilities $  59,000,000
Common stock (10,000,000 shares) 30,000,000
Retained earnings     50,000,000
Total shareholders’ equity     80,000,000
Total liabilities and shareholders’ equity $139,000,000

The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm’s tax rate is 40%.

Refer to Multi-Part 9-1. Which of the following is the best estimate for the weight of debt for use in calculating the firm’s WACC?

 

13.Which of the following statements is CORRECT?

 

14. Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $32.50 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?

 

 

15.Which of the following statements is CORRECT?

Ford Company Strategic Management Case Analysis Part 2

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Complete the following:

– Develop vision and mission statements for the organization.

-Recommend specific strategies and long-term objectives. Show how much your recommendations will cost. Clearly itemize these costs for each projected year. Compare your recommendations to actual strategies planned by the company.

The Following Financial Statements For BestCare HMO

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a. Perform a Du Pont analysis on BestCare. Assume that the industry

average ratios are as follows:

Total margin                      3.8%

Total asset turnover           2.1

Equity multiplier                 3.2

Return on equity (ROE)   25.5%

b. Calculate and interpret the following ratios for BestCare:

Industry Average

Return on assets (ROA)          8.0%

Current ratio                              1.3

Days cash on hand                 41days

Average collection period        7days

Debt ratio                                       69%

Debt-to-equity ratio                      2.2

Times interest earned (TIE) ratio 2.8

Fixed asset turnover ratio            5.2

Purpose of Assignment

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Note: Please select  Consumer Foods for a QNT 561 course

About Your Signature Assignment

This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments might be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.

Purpose of Assignment

The purpose of this assignment is for students to synthesize the concepts learned throughout the course. This assignment will provide students an opportunity to build critical thinking skills, develop businesses and organizations, and solve problems requiring data by compiling all pertinent information into one report.

Assignment Steps

Resources: Microsoft Excel®, Signature Assignment Databases, Signature Assignment Options, Part 3: Inferential Statistics

Scenario: Upon successful completion of the MBA program, say you work in the analytics department for a consulting company. Your assignment is to analyze one of the following databases:

  • Manufacturing
  • Hospital
  • Consumer Food
  • Financial

Select one of the databases based on the information in the Signature Assignment Options.

Provide a 1,600-word detailed, statistical report including the following:

  • Explain the context of the case
  • Provide a research foundation for the topic
  • Present graphs
  • Explain outliers
  • Prepare calculations
  • Conduct hypotheses tests
  • Discuss inferences you have made from the results

This assignment is broken down into four parts:

  • Part 1 – Preliminary Analysis
  • Part 2 – Examination of Descriptive Statistics
  • Part 3 – Examination of Inferential Statistics
  • Part 4 – Conclusion/Recommendations

Part 1 – Preliminary Analysis (3-4 paragraphs)

Generally, as a statistics consultant, you will be given a problem and data. At times, you may have to gather additional data. For this assignment, assume all the data is already gathered for you.

State the objective:

  • What are the questions you are trying to address?

Describe the population in the study clearly and in sufficient detail:

  • What is the sample?

Discuss the types of data and variables:

  • Are the data quantitative or qualitative?
  • What are levels of measurement for the data?

Part 2 – Descriptive Statistics (3-4 paragraphs)

Examine the given data.

Present the descriptive statistics (mean, median, mode, range, standard deviation, variance, CV, and five-number summary).

Identify any outliers in the data.

Present any graphs or charts you think are appropriate for the data.

Note: Ideally, we want to assess the conditions of normality too. However, for the purpose of this exercise, assume data is drawn from normal populations.

Part 3 – Inferential Statistics (2-3 paragraphs)

Use the Part 3: Inferential Statistics document.

  • Create (formulate) hypotheses
  • Run formal hypothesis tests
  • Make decisions. Your decisions should be stated in non-technical terms.

Hint: A final conclusion saying “reject the null hypothesis” by itself without explanation is basically worthless to those who hired you. Similarly, stating the conclusion is false or rejected is not sufficient.

Part 4 – Conclusion and Recommendations (1-2 paragraphs)

Include the following:

  • What are your conclusions?
  • What do you infer from the statistical analysis?
  • State the interpretations in non-technical terms. What information might lead to a different conclusion?
  • Are there any variables missing?
  • What additional information would be valuable to help draw a more certain conclusion?

Format your assignment consistent with APA format.

Find the following values assuming a regular, or ordinary, annuity

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9.4 Find the following values assuming a regular, or ordinary, annuity:

 

a The present value of $400 per year for ten years at 10 percent

= $400 x 6.145

= $2,458.00

 

b The future value of $400 per year for ten years at 10 percent

= $400 x 15.937

= $6,374.80

 

c The present value of $200 per year for five years at 5 percent

= $200 x 4.329

= $865.80

d The future value of $200 per year for five years at 5

= $200 x 5.526

= $1,105.20

 

9.6 Consider the following uneven cash flow stream:

 

Year                                Cash Flow               PV Factor                    Present Value

0                                         $0

1                                        250                        0.909                           227.25

2                                        400                        0.826                           330.40

3                                        500                        0.751                           375.50

4                                        600                        0.683                           409.80

5                                        600                        0.621                           372.60

Total                                                       1,715.55

=======

a What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?

$1,715.55

 

9.7 Consider another uneven cash flow stream:

 

9.7

Year Ca Year                                Cash Flow               PV Factor                    Present Value

0                                         $2,000                  1.000                           2,000.00

1                                           2,000                  0.909                           1,818.00

2                                                 0                   0.826                                  0.00

3                                           1,500                  0.751                             1,126.50

4                                           2,500                  0.683                           1,707.50

5                                           4,000                  0.621                           2,484.00

Total                                                       9,136.00

=======

a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10  percent?

$9,136.00

b What is the value of the cash flow stream at the end of Year 5 if the cash flows are invested in an account that pays 10 percent annually

 

Year                                Cash Flow                           FV Factor                    Future Value

0                                         $2,000                  1.611                           3,222.00

1                                           2,000                  1.464                           2,928.00

2                                                 0                   1.331                                  0.00

3                                           1,500                  1.210                             1,815.00

4                                           2,500                  1.100                           2,750.00

5                                           4,000                  1.000                          4,000.00

Total                                                       14,715.00

=======

 

 

9.9 Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 20-year U.S. Treasury bonds) is 6 percent, what is the present value of your winnings?

 

Present Value of Annuity of Annuity of $1,750,000 for 20 years

 

Immediate Payment                                                    $ 1,750,000

Annuity for 19 years at 6% (1,750,000 x 11.158)      $19,526,500

Total                                                                $21,276,500

=========

MICRO ECONOMICS 202

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MICRO ECONOMICS 202 FALL 2014  — FINAL EXAM

100 POINTS

I

MULTIPLE CHOICE —  TWO POINTS EACH

Table 1

Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day.

Labor (number of workers)

Quantity (cupcakes per day)

Marginal Product of Labor (cupcakes per day)

Value of the Marginal Product of Labor

Wage (per day)

Marginal Profit

0

0

$325

1

200

$325

2

380

$325

3

540

$325

4

680

$325

5

800

$325

6

900

$325

1.   Refer to Table 1. What is the third worker’s marginal product of labor?

  1. 120 cupcakes
  2. 140 cupcakes
  3. 160 cupcakes
  4. 180 cupcakes
  5. Refer to Table 1. What is the fourth worker’s marginal product of labor?
    1. 120 cupcakes
    2. 140 cupcakes
    3. 160 cupcakes
    4. 180 cupcakes

3.  Refer to Table 1. What is the fifth worker’s marginal product of labor?

a. 120 cupcakes

b. 140 cupcakes

c.  160 cupcakes

d.  180 cupcakes

4.  Refer to Table 1. What is the sixth worker’s marginal product of labor?

a.  100 cupcakes

b.  120 cupcakes

c.  140 cupcakes

d.  160 cupcakes

5.  Refer to Table 1 What is the value of the marginal product of the first worker?

a.  $200

b.  $400

c.  $500

d.  $700

6.  Refer to Table 1. What is the value of the marginal product of the second worker? .

a.  $180

b.  $360

c.  $450

d.  $720

7.  Refer to Table 1. What is the value of the marginal product of the fifth worker?

a.  $120

b.  $240

c.  $300

d.  $1,600

8.  Refer to Table 1. The marginal product of labor begins to diminish with the addition

of which worker?

a. the 1st worker

b. the 2nd worker

c. the 3rd worker

d. the 4th worker

9.  Refer to Table 1. What is the marginal profit of the fourth worker?

a.  $280

b.  $25

c.  –$5

d.  –$45

10.  Refer to Table 1. What is the marginal profit of the sixth worker?

  1. $100
  2. −$50
  3. −$75
  4. −$125

12.  Refer to Table 1. Assuming MadeFromScratch is a competitive, profit-maximizing firm, how many workers will the firm hire?

a. 2 workers

b. 3 workers

c. 4 workers

d. 5 workers

13.  Refer to Table 1. Assume that MadeFromScratch is a competitive, profit-maximizing firm. If the market price of cupcakes increases from $2.00 to $2.50, how many workers would the firm then hire?

a. 2 workers

b. 3 workers

c. 4 workers

d. 5 workers

14.  Refer to Table 1. Suppose that there is a technological advance that allows MadeFromScratch employees  to

produce more cupcakes than they could before. Because of this change, the firm’s

a. demand for labor shifts right.

b. demand for labor shifts left.

c. supply of labor shifts right.

d. supply of labor shifts left.

15.  Refer to Table 1. Suppose that the firm suffers a loss of some of their technology such as the theft of their industrial mixers. After the theft, MadeFromScratch employees produce fewer cupcakes than they could before because they must mix the cupcake batter by hand rather than using the high-speed mixers. Because of this change, the firm’s

a. demand for labor shifts right.

b. demand for labor shifts left.

c. supply of labor shifts right.

d. supply of labor shifts left.

16. Which of the following is most likely an inferior good?

  1. an antique car
  2. gasoline
  3. a bus ticket
  4. an airline ticket

17. A good is an inferior good if the consumer buys more of it when

a. his income rises.

b. the price of the good falls.

c. the price of a substitute good rises.

d. his income falls.

18. Pepsi and pizza are normal goods. When the price of pizza rises, the substitution effect causes Pepsi to be relatively

a.more expensive, so the consumer buys more Pepsi.

b.more expensive, so the consumer buys less Pepsi.

c.less expensive, so the consumer buys more Pepsi.

d.less expensive, so the consumer buys less Pepsi.

19.  You can think of an indifference curve as an

a.equal-cost curve.

b.equal-marginal-cost curve.

c.equal-utility curve.

d.equal-marginal-utility curve.

20.  A Giffen good is one for which the quantity demanded rises as the price rises because the income effect

  1. reinforces the substitution effect.
  2. reinforces and is greater than the substitution effect.
  3. counteracts but is smaller than the substitution effect.
  4. counteracts and is greater than the substitution effect.

21.  How are the following three questions related: 1) Do all demand curves slope downward? 2) How do wages affect labor supply? 3) How do interest rates affect household saving?

  1. They all relate to macroeconomics.
  2. They all relate to monetary economics.
  3. They all relate to the theory of consumer choice.
  4. They are not related to each other in any way.

22. Just as the theory of the competitive firm provides a more complete understanding of supply, the theory of consumer choice provides a more complete understanding of

a.demand.

b.profits.

c.production possibility frontiers.

d.wages.

23. The theory of consumer choice most closely examines which of the following Ten Principles of Economics?

a.People face trade-offs.

b.Governments can sometimes improve market outcomes.

c.Trade can make everyone better off.

d.Markets are usually a good way to organize economic activity.

24.  The theory of consumer choice provides the foundation for understanding the

a.structure of a firm.

b.profitability of a firm.

c.demand for a firm’s product.

d.supply of a firm’s product.

25.  The theory of consumer choice

a.underlies the concept of the demand for a particular good.

b.underlies the concept of the supply of a particular good.

c.ignores, for the sake of simplicity, the trade-offs that consumers face.

d.can be applied to many questions about household decisions, but it cannot be                                     applied to questions concerning wages and labor supply.

II

FIFTY POINTS

BOBBY’S BOTTLE SHOP, LLC

BBS makes and sells bottles in a perfectly competitive market at a price of $.50 for each bottle.  BBS hires its labor in a perfectly competitive market  at an hourly wage of $20.  The relationship between the quantity of labor hired and the amount of output produced each hour is presented below:

LABOR             Q            MPL               VMPL                         WAGE              MARGINAL

(= P X MPL)                                              PROFIT

0                         0                   —–                  ——-                           ——–

1                        90                 90                    $45                             $20                 $25

2                        ___               ___                 ____                           20                    ____

3                        ___               ___                 ____                           20                    ____

4                       ___                ___                 ____                           20                    ____

5                       ___                ___                 ____                           20                    ____

6                       ___                ___                 ____                           20                    ____

7                       ___                ____               ____                           20                    ____

8.                      ___                ____               ___                             20                    ____

1.         Enter the missing data in the proper place on the above grid.

2.         What is the efficient labor quantity?  Why?

3.         Graph the equilibrium supply and demand for labor; label all curves and                           the             axes.

Harvard Business School Finance Course

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The cost of debt is generally lower than the cost of equity.

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True

 

False

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M&M’s Proposition I states that a company’s value is independent of its capital structure.

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True

 

False

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A higher level of leverage generally reduces managerial discretion.

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True

 

False

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The Pecking Order Theory of capital structure implies a unique optimum capital structure.

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True

 

False

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As EBIT drops, the return on equity (ROE) of a levered firm drops ______ the ROE of an otherwise identical unlevered firm.

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the same as

 

relatively more than

 

relatively less than

 

more or less than (it cannot be determined)

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Shareholders prefer high risk projects when facing a high probability of bankruptcy because

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High risk projects usually bring high rewards.

 

Shareholders have the residual claim on a company.

 

Creditors have the residual claim on a company, and therefore bear the risk.

 

There is a good chance the government will rescue them in bankruptcy.

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The _________ states that the value of the firm is determined solely by the value of its assets.

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Static Tradeoff Model

 

M&M proposition I

 

The Pecking Order Model

 

Agency Theory

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Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure? [Note: VU denotes the value of the unlevered firm; CFD denotes expected costs of financial distress; and PV denotes present value.]

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VL = PV(Tax Shield) – PV(CFD)

 

VL = VU + PV(Tax Shield) / PV(CFD)

 

VL = VU + PV(Tax Shield) – PV(CFD)

 

VL = VU + PV(Tax Shield)

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A example of indirect costs of bankruptcy is

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Court costs

 

Attorney and advisor fees

 

Lost sales due to costumers and suppliers lost trust

 

All of the above

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Which of the following are equivalent under M&M proposition I?

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Maximizing firm value and maximizing firm profit

 

Maximizing firm value and minimizing the cost of capital

 

Minimizing firm’s cost of capital and minimizing firm’s debt burden

 

Maximizing profit and minimizing taxes

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Web Development Test

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Web Development Test   This page has a initial time limit of 0:30:00 Would you like to disable all future page timer notifications?       Test      True or False: HTML and CSS are front end technology. * This question is required.  ⚪True  ⚪False       What is the difference between HTML and CSS? * This question is required.  ⚪CSS is a markup language unlike HTML  ⚪HTML is a backend technology and CSS is a front end technology  ⚪HTML focuses on a web page’s structure and CSS focuses on its presentation  ⚪As of HTML5 there is no difference       In a proper webpage, which tag holds all of a webpages visible HTML? * This question is required.  ⚪html  ⚪head  ⚪body  ⚪link  ⚪script  ⚪doctype       Alphabet for your reference:  A B C D E F G H I J K L M N O P Q R S T U V W X Y Z   If the code for CAT is ECV  what is the code for DOG? * This question is required.  ⚪FQI  ⚪BIT  ⚪FDW  ⚪GRJ       The sum of two consecutive numbers is 37.  What are they? * This question is required.  ⚪18, 19  ⚪7, 30  ⚪20, 17  ⚪36, 1               It’s 3 PM. How many degrees are in the angle between the hour and minute hand? * This question is required.  ⚪90  ⚪60  ⚪15  ⚪25  ⚪180       What does the following code alert?   var person = {    name: “Mike”,    age: 25,    favoriteFood: “pizza”  };   alert(“My best friend’s name is” + person.name + “,he’s ” + person.age + ” years old and his favorite food is ” + person.favoriteFood);    * This question is required.  ⚪My best friend’s name isMike,he’s 25 years old and his favorite food is pizza  ⚪My best friend’s name is Mike, he’s 25 years old and his favorite food is pizza.  ⚪My best friend’s name isMike ,he’s 25 years old and his favorite food is pizza.  ⚪My friend’s best name isMike,he’s 25 years old and his favorite food is pizza.       What language(s) MUST be used to display a bare-minimum web page?    ⚪HTML, SQL, Node.js  ⚪HTML  ⚪JavaScript & PHP  ⚪SQL       What is the best image format for our website if we needed our image to have a transparent background?    ⚪JPEG  ⚪JPG  ⚪GIF  ⚪PNG  ⚪PSD  ⚪TIFF  ⚪None of these       Which one of these is the most different?    ⚪JavaScript  ⚪PHP  ⚪Ruby  ⚪Python  ⚪MySQL       Which of these statements is true?    ⚪Agile is a programming language  ⚪SQL is a database language  ⚪HTML stands for “Hypertext Markup Link”  ⚪Java is short for JavaScript               It’s 2 PM. How many degrees are in the angle between the hour and minute hand?    ⚪90  ⚪60  ⚪15  ⚪25  ⚪180             The following HTML and CSS is COMPLETELY CORRECT. This code makes up a web page. When the following code renders onto the screen, which paragraph appears bolded?    ⚪The Wonder Years is an American television comedy-drama created by Neal Marlens and Carol Black.  ⚪It ran on ABC from 1988 until 1993.  ⚪The pilot aired on January 31, 1988, following ABC’s coverage of Super Bowl XXII.  ⚪All of the above       Which operation could we perform in order to find the number of milliseconds in a year?    ⚪60 * 60 * 24 * 7 * 365  ⚪1000 * 60 * 60 * 24 * 365  ⚪24 * 60 * 100 * 7 * 52  ⚪1000 * 60 * 24 * 7 * 52  ⚪None of these       You are facing North. Turn 90 degrees left. Turn 180 degrees right. Reverse direction. Turn 45 degrees left. Reverse direction. In which direction are you now facing?     ⚪North  ⚪West  ⚪South West  ⚪South East  ⚪North West  ⚪North East       Albert thought of a number, added 5, multiplied the result by 2, took away 6 and then divided by 2 to give an answer of 8.    ⚪5  ⚪6  ⚪3  ⚪4       If you’re driving one and a half miles per minute, slow down by 15 miles per hour, and then reduce your speed by one third, how fast are you going now?    ⚪90 miles per hour  ⚪60 miles per hour  ⚪50 miles per hour  ⚪75 miles per hour  ⚪45 miles per hour       What is the value of ?????  ???? + ???? = 10;  ???? + ???? = 6;  ???? + ???? = 5;    ⚪6  ⚪9  ⚪7  ⚪8  ⚪1       Which CSS attribute would change an element’s font color to blue?    ⚪font-color: blue;  ⚪background: blue;  ⚪color: blue;  ⚪background-color: blue;  ⚪font: blue;       What is the largest number that can be produced by multiplying any three individual numbers from the following list.   [-2, 1, 3, -8, 5, 9, -9, 4, 7, -7, 8]    ⚪648  ⚪504  ⚪732  ⚪888