ECO 340 Problem set 1 Spring 2015 Solutions 1. Is the following statement correct‚ incorrect or uncertain? Explain why. “Because corporations do not actually raise any funds in secondary markets‚ these markets are less important than primary markets.” While it is true that no new funds are raised in secondary markets‚ it is not true that these markets are less important than primary markets. Secondary markets provide liquidity to financial assets that is lacking in the primary market.
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Semester (2013) Mark McCabe Problem Set 1 Due in class on 27. March Instructions: Please show all of your work‚ e.g. all of the calculations associated with each solution. Your solutions should be typed and not handwritten. As I mentioned in class‚ students may work together to solve these problems‚ but plagiarism or copying is not permitted. On the 27th‚ please bring a paper copy to class‚ and e-mail me a digital copy (mccabe@umich.edu) before the beginning of class. 1. At the local Castorama
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ionD1 – Evaluate how nature and nurture may affect the physical‚ intellectual‚ emotional and social development The development of an individual can be down to different aspects such as physical‚ intellectual‚ emotional and social development; these effects can be due to nature or nurture or quite possibly both. ‘The nature versus nurture debate has been a classic controversy among experts for centuries’ (www.macalester.edu)‚ even now there has been no clear conclusion as to who is right and
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for Problems and Cases Chapter 1 No check figures Chapter 2 Problem 2-13 Boxes for packaging: variable‚ direct Problem 2-14 Depreciation: fixed‚ manufacturing overhead‚ sunk Problem 2-15 (3) Cloth used: variable‚ direct Problem 2-16 (1) Cost of goods manufactured: $310‚000 Problem 2-17 No check figure Problem 2-18 (1) Cost of goods manufactured: $290‚000 Problem 2-19 (1) Total variable cost: $321‚000 Problem 2-20 Clay and glaze: variable‚ direct materials Problem 2-21
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parameters so that α + β = 1 U(x‚y) = xɗy1-ɗ‚ where ɗ = α/(α+β) and 1-ɗ = β/(α+β). The new utility function is U(x‚y) = x11/2x21/2 L (x1‚x2‚λ) = x11/2x21/2 + λ (I – px1x1 – px2x2) ɗL/ɗx1 = (1/2)x1-1/2 x21/2 – λpx1 = 0 ɗL/ɗx2 = (1/2)x11/2 x2-1/2 –λpx2 = 0 ɗL/ɗλ = I – px1x1 – px2x2= 0 => px1/px2 = x2/x1 => x1 = (px2x2) / px1. Put this in the budget constraint: I = px1(px2x2) / px1 + px2x2 => x2* = I / 2px2 Using the same way to find the demand function of good 1‚ we obtain: x1* = I / 2px1
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Exercise 6-1 Part A (1) Sales 2‚700‚000 Purchases (Cost of Goods Sold) 2‚700‚000 To eliminate intercompany sales of 2011 (2) 12/31 Inventory-Income Statement (Cost of Goods Sold) 487‚500 12/31 Inventory (Balance Sheet) 487‚500 To eliminate unrealized intercompany profit in inventory Exercise 6-2 Reported Net Income- S Company $ 525‚000 Noncontrolling Interest Percentage 0
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SOLUTIONS Financial Management Seminar + Homework‚ Week 5 1. Starware Software was founded last year to develop software for gaming applications. Initially‚ the founder invested $800‚000 and received 8 million shares of stock. Starware now needs to raise a second round of capital‚ and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a. How many shares must the venture capitalist
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Learning Team E 1/30/2012 University of Phoenix ACC 547: James Enney 22-50 Jack and Jill are owners of UpAHill‚ and S-corporation. They own 25 and 75 percent‚ respectively. a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Description | UpaHill | Jack 25% | Jill 75% | Year 1 Income | $ 45‚000.00 | | | Less: | | | | Dividends | $ 500.00 | | | Interest Income | $
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Unit 4 Assignment 4.3 Implementation of a Data Classification Policy Risk Assessment One the first steps in implementing an effective security plan is to periodically assess Organizational risks. Identifying and mitigating risk will help in establishing a security management structure and assigning security responsibilities. Without having an understanding of your risk you are unable to determine the proper security policies‚ procedures‚ guidelines‚ and standards to put in place to ensure adequate
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Selected answer key for problem set 1 Econ262 C1.2 (i) There are 1‚388 observations in the sample. Tabulating the variable cigs shows that 212 women have cigs > 0. (ii) The average of cigs is about 2.09‚ but this includes the 1‚176 women who did not smoke. Reporting just the average masks the fact that almost 85 percent of the women did not smoke. It makes more sense to say that the “typical” woman does not smoke during pregnancy; indeed‚ the median number
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