INSTRUCTIONS: You must show all of your work where calculations are required and you must include a brief explanation of approximately 50 words for each answer to receive full credit: 1. Markets‚ Demand and Supply‚ part 1 (10pts): a. What effect will each of the following have on the DEMAND for coffee (i.e. Increase Demand‚ Decrease Demand‚ or NO CHANGE)? You must include a brief explanation of approximately 50 words for each answer to receive full credit: i. There is an increase in the price
Premium Supply and demand
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 | $
Premium Taxation in the United States Tax
has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM? 850= 1000/ (1+y)^12 850 * (1+y)^12= 1000 (1+y) ^12= 1.18 1+y= (1.18)^(1/12) Y= 1.014-1 Y= .014 or 1.4% Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1‚000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? $1000 * 10%/2= 50 P= 50 * (1/.09) {1-[1/(1
Premium Dividend yield Bond Stock
FIN 350 Prof. Porter Problem Set 4 1. Describe what happens to the total risk of a portfolio as the number of securities is increased. Differentiate between systematic risk and unsystematic risk and explain how total risk and systematic risk are measured. As the number of securities increases‚ the total risk of the portfolio decreases. This decrease occurs due to the benefits of diversification which is the process of acquiring a portfolio of securities that have dissimilar risk-return characteristics
Premium Futures contract Foreign exchange market Forward contract
4-25 Billy Dent‚ as the owner of an apartment building‚ receives and makes the following payments during 2011: How much rental income must Billy Dent include on his 2011 income tax return? 5‚000+4‚000= $9‚000 4-32 Arnold and Barbara Cane were divorced in June 2011. Pursuant to the divorce decree‚ Arnold is obliged to perform as follows: a. Transfer title of their personal home to Barbara. They purchased the house in 1998 and their basis today is $400‚000. The fair market value of
Free Tax Taxation Taxation in the United States
Rodriguez operates a variety store that provides an annual revenue of $480 000. Each year‚ he pays $25 000 in rent for the store‚ $15 000 in business taxes‚ and $350 000 on products to sell. He estimates he could put the $80 000 he has invested in the store into his friend’s restaurant business instead and earn an annual 20 percent profit on his funds. He also estimates that he and his family could earn a total annual wage of $90 000 if they worked somewhere other than the store. a. Calculate
Premium Investment Generally Accepted Accounting Principles Profit
Econ 302 Name:_____________________ Fall 2014 Problem Set 1 (Thursday September 18‚ 2014 In class – no extensions) Please Print and Answer in the Provided Space 1) Consider the following estimates for an iPad sold in Canada in 2010: retail price $550 (say at Best Buy)‚ Apple (a U.S. corporation) wholesale price $475‚ Apple intermediate costs $385. Of Apple’s intermediate costs‚ $100 was wholly produced by U.S. manufacturers‚ and $285 from other foreign producers. Suppose the production chain was
Premium Inflation United States dollar Purchasing power parity
unrealized intercompany profit in inventory Exercise 6-2 Reported Net Income- S Company $ 525‚000 Noncontrolling Interest Percentage 0.20 Noncontrolling Interest in Net Income $ 105‚000 Exercise 6-3 2011 Reported net income $ 30‚000 Unrealized intercompany profit included therein = $5‚200; $5‚200 0.25 = (1‚300) Profit included in consolidated income 28‚700 Percentage interest 0.10 Noncontrolling
Premium Balance sheet Goodwill Generally Accepted Accounting Principles
good 1‚ we obtain: x1* = I / 2px1 b) x1* = 24 / (2∙1) = 12 x2* = 24 / (2∙2) = 6 c) x1* = 24 / (2∙1) = 12 x2* = 24 / (2∙3) = 4 d) Substitution effect = ɗx/ɗpx = – I/2px2 Income effect = – xɗx/ɗI = – x/2px The price of good 1 did not change‚ so there is no effect. The price of good 2 rose to €3. Substitution effect = – 24 / (2∙32) = – 1‚33 Income effect = – 4 / (2∙3) = –
Premium Consumer theory Preference Supply and demand
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
Premium Stock market Dividend yield Venture capital