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Demand Elasticity of Apples

Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to s

Home Builder Supply: Incremental Earnings

Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned war

Step-wise answer to PERSONAL FINANCE

1 to 2 pages long Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $1

Using the index (1985=100) on housing starts in the United States per year

Using the index (1985=100) on housing starts in the United States per year from 1986 to 1997 given in the table below, forecast the index for 1998 a three-year and a five year moving average. Which of your estimates is better if the actual index of housing starts in the United States for 1998 is 163? Index of House Starts in

Pampa Oil Company: investment proposal

The Pampa Oil Company operates oil and gas exploration throughout the panhandle of Texas. The firm recently was approached by a wildcatter named William "Wild Bill" Donavan with the prospect to develop what he thought was a sure thing. Wild Bill owned the lease and wanted to sell it to Pampa to meet some rather pressing gambling

Adjusting entries

The following are selected 2006 transactions of Yosuke Corporation. Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1 Purchased for $60,000 a patent with an estimated useful life of 5 years and a legal life of 20 years. Instructions Prepare necessary adjusting entries

MC on market risk premium

Which of the following statements is correct? (Assume that the risk-free rate is a constant) a. If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0. b. The effect of a change in the market risk premium depends on the slope of the yield curve.

Stock Valuations

1.) Brown incorporated is expected to pay a 41.50 per share dividend at the end of the year (i.e., D1= $1.50). The dividend is expected to gross at a constant rate of 7% a year. The required rate of return on the stock r, is 15%. What is the value per share of the company's stock? 2.) A company currently pays a dividend of $

Estimate of the stock's current price

A company currently pays a dividend of $2 per share, D(0) = $2. It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then the dividend will grow at a constant rate of 7% thereafter. The company's stock has a beta equal to 1.2, the risk free rate is 7.5% and the market risk premium

Boehm Incorporated Constant Growth Valuation

Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (i.e., D(1) = $1.50). The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock, r(s), is 15%. What is the value per share of the company's stock?

Janson Bottle Co: bond amortization table

1.) On June 1, 2006, Janson Bottle Company sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Instructions

Price Elasticity:

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.

Price Elasticity and Cross- price Elasticity

Please help with the following finance problems. Type of Orange Florida Indian Florida Interior California River Florida Indian River -3.07 +1.56 +0.01 Florida Interior +1.16 -3.01

Elasticity of Income for Commodities

If there has been a 10 percent increase in consumer income between two periods, what was the percentage change in the demand for foreign travel? For tobacco products? For Flour? Commodity Income Elasticity Flour -0.36 Cigarettes 0.50 European Cars 1.93 Asian Cars 1.65

Deflections, LLC new mortgage loan. How much can it finance?

Deflections, LLC, currently net leases its headquarters office building for $70,000 per month, and this lease has two years left to run. (Under a commercial fully net lease, the tenant pays for all maintenance, repairs, insurance and property taxes.) Deflections considers the rent to be less than the current market rate, bu

Finance: Plan your retirement income for 20 years from now. Show calculations

You are 40 years old and plan to retire in exactly 20 years. Starting 21 years from now you will need to with draw $5,000 per year from your retirement fund to supplement your social security payment. If you expect to live to age eighty-five, how much should you place in the retirement fund each year for the next 20 years to re

Finance questions of preprogrammed function

P4-2 Future value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table. Comp

Finance : Mortgages and Amortization

Here is the problem Delta , LLC, currently net leases its headquarters office building for $70,000 per month, and this lease has two years left to run. (Under a commercial fully net lease, the tenant pays for all maintenance, repairs, insurance and property taxes.) Delta considers the rent to be less than the current market

Cross Rates: Swiss Francs, Japanese Yen

Look at Table 22-1 attached. How many Swiss francs can you buy for $1? How many yen can you buy? What rate do you think a Japanese bank would quote for buying or selling Swiss francs? Explain what would happen if it quoted a rate that was substantially less than your figure.

Prepare an Analysis on the Financial Position of Wendy's

Please help me get the following info with supporting evidence from Wendy's financial statements. I have provided the link. Prepare an analysis on the financial position of the company for the last 3 to 5 years. Refer to the financial statements for this information. I. Have they acquired more assets? Has the company grow

Enterprise value: SimpleCorp

Analysts are forecasting that SimpleCorp will report free cash flow in the coming years as follows: 1: $45 2: $58 3: $40 4: $50 5: $60 In addition, analysts expect SimpleCorp shares to experience no multiple expansion or contraction and therefore to trade throughout the forecast an industry-standard Enterprise Val

Dividend discount model - value of Gillette stock

Gillette has announced that it will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter through the fifth year. After the fifth year, growth will level off at 2% per year. Applying the dividend discount model, what is the value of a share of Gillette stock if the

Direct Labor Variable Costs

I have 46 study questions that I need assistance with answering. Question 1: Schickel Inc. regularly uses material B39U and currently has in stock 460 liters of the material for which it paid $3,128 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.95 per liter. N

Short Company Reports for a Fiscal Year

For their last fiscal year, the Short Company reported the following information. Accounts Receivable $160,000 Inventory $204,000 Sales $1,168,000 Cost of Goods Sold $724,000 What is the accounts receivables turnover rate? a. 0.8 b. 7.3 c. 4.5 d 2.8

Recording and Amortization of Intangibles

Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2007. 1/2/07 Purchased patent (8-year life) $ 350,000 4/1/07 Purchased goodwill (indefinite life) 360,000