Solved Exercises: Macro-Ch(23) Fall 2014 Answer the following questions: 1. In the year 2005‚ the economy produces 100 loaves of bread that they sell for $2 each. In the year 2006‚ the economy produces 200 loaves of bread that sell for $ 3 each. a. Calculate nominal GDP‚ real GDP‚ and GDP Deflator for each year (Use 2005 as the base year). b. By what percentage do nominal GDP and Real GDP rise from one year to the next? c. Calculate the rate of inflation between 2005 and 2006
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along with the further clarification on the cost of capital using DCF approach. The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds‚ both debt and equity‚ or from an investors’ point of view‚ the shareholders required return on a portfolio of a company’s existing securities. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that
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Capital Budgeting Case Su Guan Fin316 4:00 PM 11/13/2014 Directions: Answer questions 1 – 6 and turn in a hard copy of your answers at the beginning of class on Thursday November 13th. No late submissions will be accepted. You will need to use Excel or Google sheets for most of the analysis. Please type answers to the questions in this word document and attach each spreadsheet as exhibits at the back. I am trying to replicate an exam experience as much as possible so I will not be answering individual
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Dell working capital case Dell’s build to order system created a very different balance sheet. We want to assess their competitive advantage in working capital at the time of the case‚ evaluate how they funded growth at the time (1996) and evaluate potential ways to fund projected sales growth of 50% in 1997 through use of internal funds. 1. Calculate their working capital advantage. To do this calculate days sales of inventory‚ payable days and receivables days to find their cash conversion
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MB0047 – Management Information Systems - (Book ID: B1136) Assignment - Set- 1 (60 Marks) Marks-60 Attempt each question. Each question carries 10 marks: 1. What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give some Disadvantage of MIS? Answer : A management information system is a system that provides information needed to manage organizations effectively. MIS involve three primary resources: technology‚ information‚ and people. Management information
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Executive Summary: The following is an analysis of the Travel Centers of America (TA) and recommended best investment strategies as Trifthorn Capital pertains to additional investment opportunities. Based on HPT-TA deal structures and where we believe our investors to be headed we recommend the following actions: • Holding New-TA stocks you received in the spinoff • Buying shares in New-TA in addition to the stocks received from spinoff In this memo‚ we would analyze the HPT share holders’
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Case Analysis: Capital Magazine Problem Identification: Should Prisma Presse release the new magazine Capital in September‚ or postpone until the economic situation improves? If they go ahead with the launch‚ should they go with a subscription or a newsstand strategy? Alternatives: 1) Pospone the launch until the economy recovers and advertising rates start growing again. If the economic situation doesn’t get better withdraw the new magazine. +Inexperience in business magazines.
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Audit Quality and Cost of Debt Capital for Private Firms: Evidence from Finland Jukka Karjalainen Department of Business University of Eastern Finland April 10‚ 2010 Abstract The purpose of this paper is to examine the value relevance of the perceived audit quality in terms of who audits‚ as well as the audit outcomes in terms of the auditor’s opinion and accruals quality‚ in the pricing of debt capital for privately-held firms by examining a large sample of privately-held Finnish firms. The
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IGNOU B.Com ECO-01 Solved Assignments 2011 Course Code: Eco-01 Assignment code: Eco-01/TMA/2010-11 By-Mizbah Khan Ans1. Essential Features of Business: Business refers to the human activities engaged in production and/or exchange of want satisfying goods and services carried with the intention of earning profits. We can list the following five broad features of business: 1 Dealings in goods and services: Business deals with goods and services. The goods maybe consumer goods such
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you recommend that G.G. Toys change its existing cost system in the Chicago plant? In the Springfield plant? Why or why not? G.G. Toys should change its existing cost accounting system from traditional costing to activity-based costing (ABC) in the Chicago plant as it is allocating its entire manufacturing overhead on the basis of just one cost driver: production run direct labor cost. Since overhead at the Chicago plant is high‚ accurate cost accounting system is required. Different types of
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