CACL 2014 Case studies and problem sets Problem Set 1 The following problems and questions should be answered after you have read Chapters 1 and 2. 1. GML is a public company. Its shares are listed for quotation on the ASX. What does it mean to say that a company is listed? Are all public companies listed on the ASX? See [¶1-120]‚ [¶1-140] and key terms [¶1-500] If a public company is listed on the ASX‚ members of the public can buy and sell securities (such as shares) issued by the company
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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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Problem Set 1 Complete all questions listed below. Clearly label your answers. 1. The receipts and year of release of the five movies with the largest nominal box office revenues‚ along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release‚ convert the receipts for each to real dollars for the year 2010 (2010 CPI 230.1). Put the movies in order from largest to smallest real box office receipts and show
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PROBLEM SET 3 Name: ________________________________________ Problem Set 3 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 6. 1. Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices. Price of crackers Quantity Demanded (per month) $3 80 $2.5 120 $2 160 $1.5 200 $1 240 $1.00 - $1.50: ___________________________________ $1.50 - $2.00: ___________________________________ $2.00 - $2.50: ___________________________________
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Theory of International Trade Problem Set 1 Due time: 5pm September 26‚ 2014 (Friday) Answer all of the following questions. While I encourage you to discuss with your classmates‚ you have to write up your own script. Please hand it in to your TA (Miss Jiuqi Zhao) by the due time via her pageon box on the 9th ‡oor of K.K. Leung Building. 1. Suppose that Home and Foreign have the marginal product of labor shown below. Home Foreign Baseball bats 1/6 1 tennis rackets 1/2 1/4 (a) What is the opportunity
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Problem Set 4 Complete all questions listed below. Clearly label your answers. 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? If the financial asset can be turned into real money fast. Intrest earning checkable deposits are included because they can be converted quickly into paper money. Intrest earning savings accounts and treasury
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The solvency The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company’s solvency ratio‚ the greater the probability that it will default on its debt obligations. Current ratio The ratio is mainly used to give an idea of the company’s ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash‚ inventory‚ receivables). The higher the current ratio‚ the more capable the
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Problem Set 1 Macroeconomics‚ ECON 2123 (Instructor: Partha Sen; TA: Peter Tsui) ------------------------------------------------------------------------------------------------------------------------------------ Posted: Friday‚ 19 September 2014 Due: 5:00 PM Friday‚ 26 September 2014 (Submit your homework into the homework collection box outside the department office) 100 marks total Part I: True/False/Uncertain (20 marks‚ 4 marks each) 1. GDP is the value of all goods and services produced
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PROBLEM SET 4 Name: ______________________________________________ Problem Set 4 is to be completed by 11:59 p.m. (ET) on Friday of Module/Week 8. 1. Movies are distributed in a variety of forms‚ not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information‚ draw a fully labeled graph of the market for movies in which the distributor of the film price discriminates. (NOTE: This should not be perfect price
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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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