The load master for a freighter wants to determine the mix of cargo to be carried on the next trip.
The ship's volume limit for cargo is 100,000 cubic meters, and its weight capacity is 2,310 tons. The master has five different types of cargo from which to select and wishes to maximize the value of READ MORE »
The Pine Furniture Company makes fine country furniture. The company's current product lines consist of end tables, coffee tables, and dining room tables. The production of each of these tables requires 8, 15, and 80 pounds of pine wood, respectively. The tables are handmade and require one hour, tw READ MORE »
Fixed Costs, Net Income, Capital Plan, & Utilization Reduction
Assume that Valley Forge hospital has only the following three payer groups:
Payer # of Admissions Avg. revenue/admission Variable cost/admission
PennCare 1,000 $5,000 READ MORE »
Suppose the current yields to maturity on 3 month and 6 month T-Bills are 4.0 percent and 5.0 percent, respectively (yields will need to be converted to 90-day returns).
(a) In perfectly efficient markets and risk-neutral pricing, what yield should you expect to find on a 3 month T-bill forward con READ MORE »
This is a portion of the solution. Please see attachment for full problem and solution:
In their article, "The Demand for Coffee in the United States: 1963-1977" (Quarterly Review of Economics and Business, Summer 1980 pp.36-50), C.J. Huang, J.J. Siegfried, and F. Zardoshty estimated the followin READ MORE »