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  • Assignment

    $12.50

    Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry. In the long run, what do you expect will happen to:

    1. a) Your firms costs of production? Explain
    2. b) The price you can charge for your remodeling services? Why?
    3. c) Profits in home remodeling? Why?

    Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?

    When McDonalds Corp. reduced the price of its Big Mac by 75 percent if customers also purchased French fries and a soft drink; The Wall Street Journal reported that the company was hoping the novel promotion would revive its US sales growth. It didn’t. Within 2 weeks, sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonalds plans?

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  • Preparing a Comprehensive Case Analysis

    $20.00

    Preparing a Comprehensive Case Analysis, Part 1

    Research a public corporation that you believe is not doing as well as it could in the marketplace (K-Mart). For this first paper, you will complete the first steps of a comprehensive written analysis as described in Part 6 of the textbook (see book access above). The written analysis will be completed in the second written assignment in this course.

    Write a 5 page paper in which you:

    1. Identify the firm’s existing objectives and strategies.
    2. Explain one (1) strategy that the company might use to take advantage of an external opportunity, and one (1) strategy that the company might use to address a potential threat.
    3. Construct a Competitive Profile Matrix. Include the company you are researching and one or two (1 or 2) of its major competitors and at least six (6) success factors that you believe to be critical to success in this industry. This Matrix should follow the format of the examples in Chapter 3.
    4. Construct an External Factor Evaluation Matrix. This Matrix should follow the format of the examples in Chapter 3.
    5. Research and cite at least three (3) reputable, academic sources (use the textbook above and 2 online references).
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  • Applied Research Technologies

    $15.00

    How has ART been able to foster innovation and an entrepreneurial environment in the context of a large corporate entity?

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  • 1. You are a buyer for Brookdale Farms

    $15.00

    Each question is 10 pts.
    1. You are a buyer for Brookdale Farms, responsible for negotiating all the farm’s supplies and purchases. You are also an avid baseball fan. Brookdale Farms has a strict “no gift” policy.
    One of your suppliers, Lincroft Feed and Stationary, offered you two front row seats behind home plate to the Yankees/Red Sox Eastern Division playoff game. The tickets also include limo service to and from the game. The sales person from Lincroft Feed and Stationary is a lifelong friend of yours. She offered the ticket to you during a business lunch.
    Describe the Factors Affecting Ethical Behavior in this situation and what you should do, and explain whether you should take the tickets or not.

    2. You are responsible for writing a Marketing Plan for Brookdale Farms. You need to explain to upper management the need for a Marketing Plan since they never had one before. Define what a Marketing Plan is, and list and describe the elements of the plan. Write a convincing argument for the Marketing Plan and why they need one.

    Bonus Question (5 pts. – don’t leave this blank)
    List the elements of the Marketing Mix and how they are used by marketers in developing a marketing strategy.

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  • Explain how you will use Excel to find in your list the people

    $5.00

    2. Fact Pattern: Question

    You own your own small party supply and rental business. You maintain an Excel list of potential customers and clients who have rented or purchased from you in the past two years. The list includes both physical mailing addresses and e-mail addresses for each person listed. You have a “category“ code to show whether the contact is a client. If they have done business with you, they show a code of “CUST” for customer. If they are potential customers who have not yet purchased or rented from you, they are coded as “PROS” for prospect.

    You want to grow your business, and feel the best way to do this is to solicit business from customers who show a physical address in the same zip code as your business location. Respond fully to the following questions regarding this task:

    • A – (TCO 4) Explain how you will use Excel to find in your list the people you are targeting for new business. Be specific.
    • B – (TCO 8) You want to send a letter to each person on your list from Part A of this question. You have a nice form letter that you have used in the past. Explain how you might personalize the letter by adding your customer names.
    • C – (TCO 7) If you get the results you expect to get from contacting your prospects, you want to be able to do this every month. Explain how you might use Excel to automate the process of separating your list as you did in Part A.
    • D – (TCO 6) You want to gauge the impact of mailing to only your customers, to only your prospects, or to everyone on your list. You have the numbers for each group, the estimated cost per letter, and the expected increase in income for each letter mailed. What Excel tools might you use to see the anticipated outcome for each of the three situations?
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  • Case study Solutions

    $20.00
    1. a) Suppose you were the top partner at a major accounting firm at that time of Andersen’s collapse. What actions, if any would you take in response?
    1. b) In 2000, the Securities and Exchange Commission proposed new regulations that limit consulting work by accounting firm This proposal was not passed by Congress. Do you think that the legislations were trying to act in the public interest when they failed to pass this proposal?
    1. c) The American Institute of Certified Public Accountants (AICPA) is the primary professional association for certified public accountants (CPAs). It has developed a Code of Professional Conduct that sets the standards of conduct for CPA People can file complaints about the ethical conduct of a CPA with the AICPA, which can levy sanctions and other penalties against its members. Do you think that the unethical conduct at Andersen (and possibly other accounting firms) was the fault of the AICPA for not setting and enforcing higher ethical standards among its members?
    2. d) The Sarbanes-Oxley Act of 2002 established a new five-person board to oversee financial accounting in publicly traded corporati The board is appointed by the Securities and Exchange Commission. Prior to the creation of this board, the industry relied primarily on self-regulations through the AICPA. Do you think the establishment of the new oversight board was a good idea or should the profession have continued to be self-regulated?
    1. e) According to the Independent (Nigel Thorpe, “Greenspan Cautions on Over-Regulation, Thursday, September 26, 2002), Alan Greenspan, the (former) chairman of the Federal Reserve, warned against   over-regulation in financial markets despite corporate scandals such as Enron and WorldC In his testimony before the Committee of Government Oversight and Reform, on October 23, 2008 he revised some of his beliefs. Do you think that financial markets and, in particular, rating agencies should rely on self-regulation?
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  • Homework Solutions (Options and Futures)

    $10.00

    1.Consider a trader who opens a short futures position. The contract size is £62,500, the maturity is six months, and the initial price is $1.50 = £1. The next day, the settlement price is $1.60 = £1. What is the amount of the trader’s gain or loss?

    A) Gain of $6,250.

    B) Loss of $6,250. (1.6 USD – 1.5 USD = 0.1 USD per 1 EUR loss; 0.1 * 62,500)

    C) Gain of $2,604.

    D) No gain or loss, since maturity has not arrived.

    2. Suppose you wish to speculate on a rise in the value of the euro. If you are correct and the value of the euro does indeed rise in the future, you would profit with

    A) a short position in a futures contract on the euro.

    B) a long position in a futures contract on the euro.

    C) a short position in a forward contract on the euro.

    D) None of the above.

    3. Explain the basic differences between the operation of a currency forward market and a futures market.

    4. A call option:

    A) is a contract to buy a certain quantity of a specific underlying asset at a specific price at a specified date in the future.

    B) gives the holder the right, but not the obligation, to sell the underlying asset for a stated price over a stated time period.

    C) is an exchange-traded contract to buy a certain quantity of a specific underlying asset at a specific price at a specified date in the future.

    D) gives the holder the right, but not the obligation, to buy the underlying asset for a stated price over a stated time period.

    5. Consider a put option written on €100,000. The strike price is $1.50 = €1.00 and the option premium is $0.02 per euro. What is the theoretical maximum gain on this position?

    A) There is unlimited upside potential.

    B) $80,000

    C) $148,000 (1.50 USD – 0.02 USD = 1.48 USD; 1.48 USD per 1 EUR * 100,000 EUR)

    D) $2,000

    6. Consider a trader who buys a European call option on euro. The contract size is €62,500, the maturity is six months, and the strike price is $1.50 = €1. At maturity, the settlement price is $1.60 = €1. What is the amount of the trader’s gain or loss?

    A) Gain of $6,250. (1.6 USD – 1.5 USD = 0.1 USD per 1 EUR gain; 0.1 * 62,500)

    B) Loss of $6,250.

    C) Gain of $2,604.

    D) No gain or loss, since expiry has not arrived.

    7. Consider a put option written on €100,000. The strike price is $1.50 = €1.00 and the option premium is $0.02. At what exchange rate will the buyer of this put option break even?

    A) $1.00 = €.667

    B) $1.52 = €1.00

    C) $1.48 = €1.00 (1.50 USD – 0.02 USD = 1.48 USD per 1 EUR)

    D) $1.50 = €1.00

    8. What is meant by the terminology that an option is in-, at-, or out-of-the-money?

    9. Assume that the Japanese yen is trading at a spot price of 92.04 cents per 100 yen.   Further assume that the premium of an American call (put) option with a striking price of 93 is 2.10 (2.20) cents. Calculate the intrinsic value and the time value of the call and put options.

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  • SECTION A Questions and Solutions

    $15.00

    Answer one question from this section. Answer all questions in a separate answer book.

    (a) Assume you are a UK-based buyer of New Zealand frozen lamb meat. You have just concluded a deal to buy NZD 5,000,000 worth of lamb meat from New Zealand and you will have to pay in one year’s time. You strictly prefer hedging against fluctuations in the foreign exchange market of NZD against GBP. The GBP interest rate is 2.5% per annum. The NZD interest rate is 5% per annum.

    Information on the spot and forward exchange rates quoted against the U.S. Dollar (USD) on 20/03/2014 (retrieved on 21/03/2014 from The Financial Times web page http://markets.ft.com/research/Markets/Currencies) is summarised in the following table:

    Currency                 Spot Rate               12-Month Forward

    Rate

    New Zealand Dollar

    (NZD)

    Great Britain Pound

    (GBP)

    1.1713 NZD/USD       1.2114 NZD/USD

    1.6510 USD/GBP       1.6456 USD/GBP

    1. i.       Calculate the spot and one-year forward cross rates of GBP against NZD. Is the New Zealand Dollar selling at a premium or at a discount versus the Great Britain Pound?
    2. ii.       Describe two financial instruments to hedge against exchange rate risk. What is the pound cost of New Zealand lamb for each instrument?

    iii.       Which of the two hedging mechanisms is preferred? Why?

    1. iv.       What happens if the UK buyer decides not to hedge? Why?

    (b)   Explain whether   and, if so, how covered interest arbitrage opportunities can be exploited. Use the information provided in part (a). Assume that the arbitrageur can borrow up to NZD 5,000,000 or an equivalent amount in GBP.

    (a) Suppose an investor is considering setting up a new e-business that consists of selling smartphone applications. Expected cash flows from her new business are for the amount of GBP 20,000 per annum over the period of 10 years, and the yield to maturity is 5%.

    1. i.   As a financial manager, you are expected to tell to the investor how much she could invest in her business to break even. Please provide your valuable customer with a qualified advice.
    2. ii. Would the present value of   the business be higher or lower relative the value calculated in part i if the yield to maturity increases to 10%? Explain your answer.

    iii. Assume that in one year’s time, the investor encounters liquidity issues and thus is forced to sell her business. The price that she is offered is GBP 150,000. Calculate the rate of return from year 1   to year 2

    (b) Calculate the market value of a perpetuity that pays a coupon of GBP 100. Assume the yield to maturity is 4%. Can the nominal price of a perpetuity be negative? Why?

    (c)   Explain the role of deflation for project evaluation. Why real rather than nominal cost of borrowing matters for   project evaluation?

    (d) If the interest rate is 4%, how much would you be willing to pay for a security that pays you GBP 1,000 next year, GBP 2,000 in two years, GBP 3,000 in three years and GBP 4,000 in four years from now? If the market price of a security is GBP 8,000, would you buy or sell it? Why?

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  • Maximize Z = 3×1 + 2×2

    $20.00

    Problem 4. (25 Points)
    Solve the following problem graphically (Please be neat). Draw the polytope on the x-y coordinate system (can be done either by hand or computer). Show all intersection of the polytope and identify the point (x,y coordinate) where the objective function is maximized and provide that value.

    Maximize Z = 3×1 + 2×2
    Subject to:
    1×1 + 1×2 ≤ 10
    8×1 + 1×2 ≤ 24
    and
    x1, x2 ≥ 0

    Problem 5. (30 Points)
    Work through the simplex method (in algebraic form) step by step to solve the following problem. Show all work and provide the solutions for each variable at every iteration of the simplex.

    Maximize z = 4×1 + 3×2 + 4×3

    Subject to:
    2×1 + 2×2 + 1×3 ≤ 20
    2×1 + 1×2 + 2×3 ≤ 14
    1×1 + 1×2 + 3×3 ≤ 15
    and
    x1, x2, x3 ≥ 0

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Showing 478–486 of 728 results