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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supply) and into leisure. Problem Set 2: Suggested Solutions 2 Taxes in the Real Intertemporal Model (40 Raw Points) Taxes in the Real Intertemporal Model This problem studies the effects of a permanent (lump sum) tax decrease on macroeconomic variables such as This problem studies the effects of a permanent (lump sum) tax decrease on macroeconomic variables such as employemployment‚ output‚ consumption‚ investment‚ interest rates‚ and real wages. This problem is particularly ment‚ output
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Text Problem Sets A1. (Bond valuation) A $1‚000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond? Number of years (N) = 10‚ future value (FV) = 1000‚ interest rate (I/YR) = 9 0.074 * 1000 = 74 = PMT or annual payment‚ I then pressed CPT on my financial calculator to compute the price of the bond and then pressed PV or present value. The fair value of the bond is $897.32. Using Cash Flow of
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Problem Set 4 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? a. Any financial asset that can be easily changed into physical money is included in the M1 money supply. b. Because checkable deposits are easily changed into physical money‚ they are included in M1; however‚ savings accounts and Treasury bills cannot be‚ due to the fact that
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MCB 150 Lab PROBLEM SET 1 1. The data below were obtained after performance of Ex. 2 as stated in your MCB 150 lab manual. a. Estimate the number of total bacteria‚ actinomycetes‚ fungi and algae per gram (dry weight) of soil collected from the IBS garden pH: 6.0 ODW: 8.6 grams Colony Counts: PDA 10-1: 210‚ 190 AMA 10-4: 125‚ 119 SCA 10-4: 80‚ 62 10-2: 20‚ 34 10-5: 17‚ 29 10-5: 18‚ 2 Algal Medium (no. of + tubes/ no. of inoculated tubes): 10-1: 5/ 5 10-2: 5/ 5 10-3: 3/ 5 10-4:
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ZPH 123 Problem set Forces 1. Two 25.0-N weights are suspended at opposite ends of a rope that passes over a light‚ frictionless pulley. The pulley is attached to a chain that goes to the ceiling. a. What is the tension in the rope? b. What is the tension in the chain? 2. A stockroom worker pushes a box with mass 11.2 kg on a horizontal surface with constant speed of 3.50 m/s. The coefficient of kinetic friction between the box and the surface is 0.20. a. What horizontal force must be applied by
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Problem Set 1 1. (Star Wars) Real GDP = 461.0(214.5/60.6) = 1‚631.76 (E.T.) Real GDP = 399.9(214.5/96.5) = 888.90 (Titanic) Real GDP = 600.8(214.5/160.5) = 802.94 (Shrek 2) Real GDP = 437.2(214.5/188.9) = 496.45 (Avatar) Real GDP = 760.5(214.5/214.5) = 760.5 Real GDP in Order of Largest to Smallest Movies Nominal Box Office Receipts (millions) CPI in Year Released Real Box Office Receipts (millions) Star Wars (1977) 461.0 60.6 1‚631.76 E.T. The Extra-Terrestrial (1982) 399.9 96.5 888.90 Titanic
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Quantitative Methods for Business Chapter 5 Problem No. 3 Homework Solution Problem No. 3 _____________________________________________________________________________________________ Problem No. 3 In a certain lottery‚ a lottery ticket costs $2. In terms of the decision to purchase or not to purchase a lottery ticket‚ suppose that the following payoff table applies: Decision Alternatives Win s1 Loses s2 Purchase lottery ticket‚ d1 300‚000 -2 Do not purchase lottery ticket
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Econ 214 Problem Set 5 1. What impact will an unanticipated increase in the money supply have on the real interest rate‚ real output‚ and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. The money supply in an economy is the benchmark by which interest rates are determined. The supply of money is directly tied into the amount of money that can be loaned and borrowed in various capacities. The more money there is to loan
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Index Models Download 61 months (October 2007 to October 2012) of monthly data for the S&P 500 index (symbol = ^GSPC). Download 61 months (October 2007 to October 2012) of IBM data and 61 months (October 2007 to October 2012) of GE data. Download 60 months (November 2007 to October 2012) of the 13 week T-bill rate (symbol = ^IRX). Be sure to use end-of-month data! Construct the following on a spreadsheet: 1. Calculate 60 months of returns for the S&P 500 index‚ IBM and GE. Use November 2007 to
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