PROBLEM SET 2 Name: ___________________________________ Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4. 1. The following table presents data for wages in the market for internet security professionals. (HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.) Wage Quantity Demanded Quantity supplied $50‚000 20‚000 14‚000 $60
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Accounting 3.2 – Partnership Agreement Clauses Goodwill * What goodwill represents in Lucy and Gemma’s new partnership agreement for ‘Awesome Catering’. As Lucy and Gemma start there new partnership agreement from Lucy’s old business called ‘Lucy’s Catering and combine their assets and liabilities to form a new partnership called ‘Awesome Catering’‚ Lucy’s old business‚ ‘Lucy’s Catering’ will have Goodwill as an asset. Goodwill is the monetary value given to the reputation or customer loyalty
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A-3 (Coverage ratio) The firm in the two preceding problems also had $6 million of principal repayments during the latest 12 months. Its marginal tax rate is 40%. Calculate the debt service coverage ratio. Debt-Service Coverage Ratio = (EBIT + 1/3 Rentals) / (Interest Expense + 1/3 Rentals + Principal Repayments / (1 - T)) = ($30 + $15 / 3) / ($10 + $15 / 3 + $6 / (1 - 0.40)) = 1.40 A-4 (WACC with rebalancing) Nathan’s Catering is a gourmet catering service located in Southampton‚ New York
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Problem Set 1 Problem 1 Which project should the firm select? Why? Project B: Managers should try to maximize their stock’s intrinsic value while also bringing in revenue. The P/E ratio shows the dollar amount investors will pay for $1 of current earnings. Problem 2 If most investors expect the same cash flows from Companies A and B but are more confident that A’s cash flows will be closer to their expected value‚ which company should have the higher stock price? Explain. The primary
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use the data by analyzing it such as this data’s a purse large enough to double as a diaper bag‚ zinc and magnesium supplements and a bright blue rug. These data describes that she have a probability that she is pregnant just like Maria when she answers the test retailer sends him to her also by the use of
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60 Direct materials purchased 160 Cost of direct materials available for use 220 Ending inventory‚ 31 Dec. 2011 (10) Direct materials used $210 Direct manufacturing labour costs 80 Indirect manufacturing costs: Plant supplies used 12 Property taxes on plant 2 Plant utilities 10 Indirect manufacturing labour costs 40 Depreciation––plant and equipment 18 Miscellaneous manufacturing overhead costs 20 102 Manufacturing costs incurred during 2011 392 Add beginning work-in-process
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Calculate the budgeted cost of trophies and plaques if Tarquin allocated overhead costs in each department using activity-based costing. 4. Explain how the disaggregation of information could improve or reduce decision quality. Problem E 1 Overhead rate = Total overhead 56‚346 0.712113744 71.211% Total Direct costs $79‚125 Tarquin’s Trophies Budgeted Information For the Year Ended November 30‚ 2011 Forming Department Trophies Plaques Total Direct materials
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salary in one month= 1000+500=1500per month Worker’s salary in 5 years= 1500*12*5=90‚000 per 5 years 800‚000/90‚000=8.88 workers. A robotic arm needs to be replaced by 8.88 workers. Notes: • Robots are highly reliable. • In BYD‚ defects during assembly for similar processes are lower than 1% of those that are using robots. • Using of manpower instead of robotic arms concurs with the low cost strategy of BYD. Question 3 NO‚ because other nascent Chinese battery companies use only low cost strategy
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1 Problem 1-4. An Analysis of the transactions made by Acme Consulting for the month of July 1. Explain each transaction. 1) $20‚000 is the amount invested by the owner/s into the business 2) $7‚000 is the cost of the equipment purchased for the business. $5‚000 has been paid. $2‚000 is the amount still owed for the purchase. 3) $1‚000 is the amount expended to purchase inventories and supplies for the business. 4) $4‚500 is the amount paid for
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ECN171 Economy of East Asia Problem Set 1 The data for this problem set is posted on SmartSite in the Resources folder. It was downloaded from the Penn World Tables version 7.1‚ which is publicly available at https://pwt.sas.upenn.edu/php_site/pwt_index.php . 1. Graph the GDP [per capita] of the East Asian countries in PS1_data.xls on one graph. Which East Asian country is the largest [richest] in 1960? In 2010? When did the switch occur? 2. Calculate the growth rates (log difference‚ using natural
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