Homework 2 Solution Key Problem 1. Suppose that you sell short 500 shares of Intel‚ currently selling for $40 per share‚ and you give your broker $15‚000 to establish your margin account. Assume Intel pays no dividends. a) If you earn no interest on the funds in your margin account‚ what will be your rate of return after one year if Intel stock is selling at (i) $44; (ii) $40; (iii) $36? The gain or loss on the short position is 500 P . Invested funds are $15‚000. Therefore‚ your rate
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this bid even though it will probably be rejected. Gulf Oil may be forced to accept a bid lower than $70 per share in the event financing falls through for competitors or other unforeseeable circumstances evolve‚ such as regulation by FTC. The numbers presented below are reliant upon estimates‚ which makes the findings highly sensitive to changes in the economic environment. For example‚ if average inflation over the life of the project is 5.8%‚ then the resulting savings would justify a bid of
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only made offer to treat; as time of payment was to be negotiated no agreement had been reached and finally that the plaintiff had waived his right to bid at the auction. Question 6 In a traditional auction agreement is reached when no further bids are received and the auctioneer lowers the hammer accepting the last bid offered as the successful bid. Question 7 The auctioneer is the human element in a traditional auction; he is also the agent of the seller and as such has the authority to execute
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accept bids only another thing that they can do is offer the Buy It Now option‚ which is basically a price that is set in place from the seller. The seller can have a choice to choose both options if they like. The Buy It Now option allows the potential buyer to buy the item without having to go through and win the auction. The seller has the right to specify what the price should be to open the bids and how many days an item is allowed to be bided on. Potential buyers then place their bids on the
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PROGRAM ON NEGOTIATION AT HARVARD LAW SCHOOL AN INTER-UNIVERSITY CONSORTIUM TO IMPROVE THE THEORY AND PRACTICE OF CONFLICT RESOLUTION THE BULLARD HOUSES Confidential Instructions for the Buyer’s Representative You are a fast-track real-estate lawyer in Gotham representing Absentia‚ Ltd.‚ a Liechtenstein corporation owned by a Bahamanian blind trust. (Such a complicated corporate structure is frequently used to make it hard for others to find out an actor’s true identity. It is commonly used‚ as
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Introduction to the Internet and Online Auctions The Internet is a network of networks that links together computers using the TCP/IP protocols. A definition of the Internet is (1) a global network connecting millions of computers. The World Wide Web (WWW) uses the internet services and more to allow users to share documents‚ images and various other types of media. Webopedia define the World Wide Web as (2) a system of Internet servers that support specially formatted documents. The documents
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Internet fraud is a problem that has become very widespread in recent years. Internet fraud was first monitored by the Internet Fraud Watch organization in 1996. The Fraud Watch has stated that each year after its inception internet fraud has increased. In 1998‚ the Securities and Exchange Commission established the Office of Internet Enforcement to fight online securities fraud which was another sign of how large the problem is becoming (Clausing). Despite the SEC¡¦s efforts this problem has
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Multiple Choice Questions (5 Points Each): Q. 1 Under the gold standard of currency exchange that existed from 1879 to 1914‚ an ounce of gold cost $20.67 in U.S. dollars and £4.2474 in British pounds. Therefore‚ the exchange rate of pounds per dollar under this fixed exchange regime was (a) £4.8665/$. (b) £0.2055/$. (c) always changing because the price of gold was always changing. (d) unknown because there is not enough information to answer this question. Answer:
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A. Summit Mobile Garage (SMG) – 1. Base – Awarded. Jeff has been coordinating with them on design efforts. a. Jay is doing a site visit. b. CPS received the initial shop drawings for review. They looked good and have been approved. Jeff will send Randy‚ Gary‚ Jason and Dick the shop drawings. c. CPS is working with Enercept to ship the panels to NY on Feb 8th‚ because CPS doesn’t have anyone on site in NY till then to receive the shipment. 2. Structure – Awarded. Jeff has been coordinating with
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company‚ giving the shareholders a substantial profit per share‚ as he has faith in his beloved company Word of this leaks out; the main theme of the movie is a Wall Street war between multi-million dollar companies and which can offer the highest bid. At the end even that Ross´s offer is higher‚ he cannot buy the company and the one that buys it is his biggest enemy Henry Kravis. 2. What are the companies involved in the movie? RJR Nabisco Kohlberg Kravis & Roberts First Boston Corporation
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