QUESTION 4 A) What would be the two advantages of 2nd mover over the 1st mover like Lin Wei ANSWER : The advantages of 2nd mover is get to study and observe the customer’s reactions‚ the extent of product innovations‚ mistakes of first movers so that they would try to avoid similar problems. By doing that‚ the 2nd movers would able to minimize huge capitals investments. Apply to this case‚ the second mover the second movers can study the market feedback about Lin Wei business whether
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ANSWERS TO THE END-OF-UNIT TESTS UNIT 2 1.B 2.D 3.A 4.C 5.B 6.D 7.D 8.E 9.E 10.E Notes: 5. I applied the formula (4.16) for PV of annuity but adapted for a frequency different than once a year‚ quarterly instead: r = 0‚055 C = 500 m = 4 T = 25 The result is approx. 27090 pounds which doesn’t appear as a possible answer. I chose the value nearest to that‚ therefore answer B. 6. I calculated the future values of the cash flows as not annuity and as annuity. I really don’t think these
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Give an example of each scale of atmospheric motion; Micro‚ Meso and Macro. An example of a “Microscale” atmospheric motion would be a small‚ turbulent breeze blowing through the trees. A F3 tornado flowing across a Kansas corn field would be an example of a “Mesoscale” motion‚ and Super Storm Sandy would be a great example of a “Macroscale” motion. What causes an "eddy" to form? An “eddy” is formed when wind encounters a solid object‚ a whirl of air is formed on the object’s downward side. The
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Axial head‚ neck‚ & trunkskeleton of the torso & skull Appendicular upper & lower limbsskeleton of the appendages Long Bones have long longitudinal axes and expanded endsEx. forearm‚ thigh bones‚femur Short Bones somewhat cubelike‚ with their lengths and widths roughly equalEx. carpals(wrist)‚ ankles Flat Bones platelike structures with broad surfacesEx. ribs‚ scapulae‚ some skull bones Irregular Bones have variety of shapes and are usually connected to
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8. Calculating Interest Rates. In 2010 the average price per metre for owner-occupied flats in Copenhagen was about 23.000 Danish kroner. In 1995 the average price was around 6.000 Danish kroner. What was the annual increase in selling price? t = 2010 – 1995 = 16 FV= PV * (1 + r)^t 23.000 = 6000 * (1 + r)^16 (1 + r)^16 = 23.000/6000 = 3‚83 1 + r = 3.83^(1/16) = 1.087552 1.087552 – 1 = 0.087552 = 0‚088 r = 8.8% 9. Calculating the Number of Periods. You’re trying to save to buy a new
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Applications of option pricing in corporate finance Option pricing is used in four major areas of corporate finance: • Real Options Suppose a company has a 1-year proprietary license to develop a software application for use in a new generation of wireless cellular telephones. Hiring programmers and marketing consultants to complete the project will cost $30 million. The good news is that if consumers love the new cell phones‚ there will be a tremendous demand for the software. The bad news
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FUNDAMENTALS OF CORPORATE GOVERNANCE By Thomas Clarke and Marie dela Rama SAGE Publications (2008) London; Thousand Oaks CA. ISBN: 978-1-4129-3589-0 Website: http://www.ccg.uts.edu.au THE FUNDAMENTAL DIMENSIONS AND DILEMMAS OF CORPORATE GOVERNANCE Introduction As the scale and activity of corporations has increased immeasurably‚ the governance of these entities has assumed considerable importance. Business corporations have an enduring impact upon societies and economies‚ and “how corporations
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Bond - is defined as a long-term debt of a firm or the government set forth in writing and made under seal. Kinds of Bond 1. Government Bonds - are those issued by the government to finance its activities. 2. Corporate Bonds - are those issued by private corporations to finance their long -term funding requirements. Bonds as Distinguished from Stocks 1. A bond is a debt instrument while stock is an instrument of ownership. 2. Bondholders have priority over stockholders when payments
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Suggested end-of-Chapter Practice Questions: Chapter Seven Chapter 7 1‚ 2‚ 3‚ 7‚ 11‚ 13‚ 19‚ 22‚ 29‚ 32‚ 33‚ problem similar to HW 1. What is the process of asset transformation performed by a financial institution? Why does this process often lead to the creation of interest rate risk? What is interest rate risk? Asset transformation by an FI involves purchasing primary assets and issuing secondary assets as a source of funds. The primary securities purchased by the FI often have maturity
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------------------------------------------------- Chapter 7 Case Study - 1. Review the data-flow diagrams you developed for questions in the Petrie’s Electronics case at the end of Chapter 6 (or diagrams given to you by your instructor). Study the data flows and data stored on these diagrams and decide whether you agree with the team’s conclusion that the only six entity types needed are listed in the case and in PE Figure 7-1. If you disagree‚ define additional entity types‚ explain why they are necessary‚ and modify PE Figure 7-1 accordingly
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