ECO204: Solutions to Homework 5 1. True‚ False‚ Uncertain a. False. Methods to eliminating moral hazard include writing efficient contracts between principals and agents‚ bonding and deferred payments. The methods to eliminate adverse selection include sending signals and relying on 3rd parties to verify quality. b. True. When there is asymmetric information‚ it drives out high-quality goods because consumers have a difficult time differentiating between high- and low-quality goods. As a result‚
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Case Study 301: Richard Murphy and the Biscuit Company by Kyle Ingram and Michel Jarrett Q1) What are the main problems facing the organisation described in the case? There used to be a time when companies were supposed to produce goods only‚ a time when there was no such a word as marketing‚ and a time when organisations had the certitude that their products would definitively sell out. One company that had these defaults was Biscuit & Co. Ltd.‚ which turned from a well-known‚ traditional company
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Case: 75 Federal Finance Bank – Instructor’s Solution INPUT DATA: Amount Needed to Raise Flotation Costs Stock Offer Price Market Value/Book Value Ratio (Dollars in thousands) Assets Cash U.S. Treasuries Mortgage-backed Securities Municipal Bonds Government Agency Securities Total Cash & Securities Residential Mortgage Loans Consumer Loans Business Loans Total Loans Fixed Assets Total Assets Liabilities Passbook Savings Non-interest Checking N.O.W. Accounts Money Market Accounts Certificate of
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Hwang I S 300 Viro Automotive Company Case 1. Describe the supply chain of Viro Automotive Company Viro Automotive Company’s supply chain is currently based on the pull system model; they manufacture and distribute the cars only after they have been ordered by their customers‚ rather than by forecasting demand (push system). After having received the orders from their customers‚ Viro then sends the orders to their own suppliers‚ or members of the supply chain. In this case‚ the main client is the President
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CRU Computer Rental Case Solutions Solution 1 TABLE 1: CRU FLOWS | Customer | Receiving | Status 24 | Status 40 | Stored Orders | Orders at Suppliers | Status 41 | Status 42 | Status 20 | | | | | | | | | | | Throughput(Units/Week) | 1000 | 1000 | 1000*.70=700 | 1000*.30+ .15*700= 405 | 405 | 405 | 405 | 405 | 1000 | | | | | | | | | | | Inventory(Units) | 8000= 8*1000 | 500 | 1500 | 1000 | 500 | 405= 405*1 | 500+405 = 905 | 500 | 2000=2*1000 | | | | | |
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Solution: i. Establishment of estimated growth rate in earnings and dividends. XYZ Company’s current EPS is $4.75. It was $3.90 a year ago. The company pays out 35% of its earnings as dividends‚ and the stock sells for $45. a. Calculate the past growth rate in earnings. b. Calculate the next expected dividend. Assume that the past growth rate will continue Answer: If payout ratio is constant‚ then dividend growth rate will be same as earnings growth rate. a) dividend growth rate over
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Proposing a Solution I live outside of a small town of 3‚000 people. The water system of our small town supplies drinking water to a population of 3‚000 to 5‚000. Our water system has been in place for 20 plus years and neglect has been rampant for almost the same period of time. Public water systems are governed by regulations and monitored by the State of Louisiana. The Town of Ferriday has been under state mandated “boil orders” more times that you could count. One of the more recent events
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Donner Company started its operations in 1985 and developed specialized capability in manufacturing circuit boards for experimental devices and for pilot production runs. The company uses “Solder mask over Bare Copper” (SMOBC) technology which is a popular technology for denser circuit patterns and more reliable final product. Automated processes as well as manual processes are used to perform medium-duty‚ short-cycle‚ repetitive tasks. They promise a delivery within three weeks for orders less than
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2.1 COMPANY PROFILE Mission and Vision The mission and vision to “Rise Together” helps to target on all aspects of a business and to get at the core of the objectives. In addition‚ their approach is built on the success of using right combination of strategy‚ processes‚ technology‚ infrastructure and people for each client. About the company Ascendum Solutions is a worldwide information technology solutions providing company. They provide innovative technological solutions which are generated
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situations‚ across domains and industries‚ using quantitative and/or qualitative analysis techniques. B. Instruction Methodology: Case Discussions. The students are advised to go through the specified cases along with the study material required for that case. C. Suggested Titles (Text and Reference): 1. Research Methodology (concepts & cases); Deepak Chawla & Neena Sondhi‚ Vikas Publishing (prescribed) 2. Business Research Methods: William G. Zikmund‚ Thomson South
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