What happens if during one hour the Northern Syldavia Power Company is able to deliver only 50 MWh and the pool price is 18 $/MWh? Answer

  1. What happens if during one hour the Northern Syldavia Power Company is able to deliver only 50 MWh and the pool price is 18 $/MWh? Answer
  2. Trace the flow of power and money between these companies when the pool price takes the following values: 16$/MWh, 18$/MWh and 13 $/MWh.
  3. What happens if during one hour the Syldavia Aluminum Company consumes only 100MWh and the pool price is 13 $/MWh?

 

The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into 1000 dollars at maturity Answer

The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into 1000 dollars at maturity Answer

The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into 1000 dollars at maturity , 7 years from their purchase. To price these bonds competitively with other bonds of equal risk , it is determined that they should yield 10 percent , compounded annually . At what price should the Kumar Corporation sell these bonds ?

The Baron Basketball Company (BBC) earned $10 a share last year and paid a dividend of $6 a share Answer

The Baron Basketball Company (BBC) earned $10 a share last year and paid a dividend of $6 a share Answer

 

Problem 4


The Baron Basketball Company (BBC) earned $10 a share last year and paid a dividend of $6 a share. Next year, you expect BBC to earn $11 and continue its payout ratio. Assume that assume that you expect to sell the stock for $132 a year from now. If you require 12 percent on this stock, how much would you be willing to pay for it?
Given the expected earnings and dividend payments in Problem 4, if you expect a selling price of $110 and


require an 8 percent return on this investment, how much would you pay for the BBC stock?

Necessary conditions for firm to practice price discrimination? Answer

  1. Necessary conditions for firm to practice price discrimination? Answer
  2. price discrimination described
  3. Perfect price discrimination
  4. Block pricing
  5. Third degree price discrimination
  6. Reasons why first degree discrimination is very difficult to practice
  7. Seller must have monopoly power
  8. Market must be divided into different sub-market
  9. policy adopted by wall-mart of price match is that it involves huge amount of market

International business environment? Answer

  1.  International business environment?  Answer
  2. Discuss how the new international business environment is causing this path to market expansion to change.
  3. Do you think the currency volatility and financial ratings of countries affect foreign investment decisions?
  4. Do you agree with the statement that countries with stronger currency invest in countries with weaker currencies?
  5. How would you analyze this development and purchase of American companies by businesses from emerging economies?

 

Two positive externalities and two negative externalities the copy center is associated with in society? Answer

  1. Two positive externalities and two negative externalities the copy center is associated with in society? Answer
  2. Select a business in your community with which you are familiar and describe the positive or negative externalities the business is adding to society
  3. Suggest enhancements to the operations that you believe would reduce the possibility of regulation.
  4. Recommend methods that, once implemented, would decrease the possibility of government regulation in the business you selected in Part 1 of this discussion
  5. Give your opinion on how economic analysis can be used to assist in understanding why there could be a reduction in crime.

 

Determine your corporation DCFROR on its equity in the investment ?Answer

  1. Determine your corporation DCFROR on its equity in the investment  ?Answer
  2. A corporation is considering the purchase of mountain recreation land for a cost of $60,000 and you estimate that 5 years from now it will be possible to sell the land for $150,000.
  3. Assume that your corporation is in the 40% effective ordinary tax bracket and that profit from the sale of the land in 5 years will be taxed as ordinary income.
  4. Paying cash for the land
  5. Determining tax on the profit from sale of the land
  6. An investor is evaluating the purchase of 200 acres of land for a $200,000 purchase price now with plans to sell the land for a profit one year from now. The investor plans to pay the property with $40,000 cash equity and $160,000 borrowed money at a 10% annual interest rate with the loan to be paid in full when the property is sold.
  7. What escalated dollar sale value must the land have one year after purchase to give the investor a constant dollar leveraged DCFROR of 30% on investor equity if the annual inflation rate is projected to be 10%?
  8. Assume that the capital gain from the land sale will be taxed as ordinary income with an effective ordinary income tax rate of 34%. 
  9. Discount rate is sum of the DCFROR and inflation rate
  10. Calculation of the cash outflow in one year

What was Real GDP for 2009? Answer

  1. What was Real GDP for 2009?  Answer
  2. What does GDP tell us?
  3. How did GDP change from 2008?
  4. What caused these changes?
  5. What was GNP for 2009?
  6. What is the difference between GDP and GNP?
  7. How did GNP change from 2008?
  8. What caused these changes?
  9. What was National Income (NI) for 2009?
  10. What does National Income tell us?
  11. What is the difference between GNP and NI?
  12. How did NI change from 2008?
  13. What caused these changes?
  14. What was Disposable Income (DI) for 2009?
  15. What does Disposable Income consist of?
  16. How did DI change from 2008
  17.  What caused these changes?
  18. What was GDP in 2008 (sometimes called GSP) for your state?

Indicators to help measure the economy of the country ? Answer

  1. Indicators to help measure the economy of the country ? Answer
  2. Brief descriptions
  3. The Consumer Price Index
  4. The average work week for production and nonsupervisory employees on private nonfarm
  5. The change in total nonfarm payroll employment for May
  6. Industrial production
  7. According to the U.S. Census Bureau the advance estimates of U.S. retail and food services
  8. According to the U.S. Census Bureau and the Department of Housing and Urban, privately-owned housing
  9. The stock market
  10. Research Paper 
  11. Introduction
  12. Economic conditions can be considered the economic characteristics that describe the state of an economy
  13. the index of leading economic indicators 
  14. trade deficit
  15. gross domestic product
  16. The level of employment is the next crucial macroeconomic variable.
  17. The inflation rate
  18. Some of the variables often used by economists and policy makers to gauge future economic conditions are briefly described below
  19. Conclusion
  20. Appendix