Industrial Organization‚ Spring 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
Premium Economics Pricing Cost
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
FIN532M: Financial Derivatives Problem Set 2 DUE DATE: Feb. 12‚ 2015 1. How can you differentiate the forward price from the value of a forward contract? (2 points) 2. Explain why an FRA can be viewed as an exchange of a floating rate of interest for a fixed rate of interest payments and how you can use FRA in mitigating risks. (4 points) 3. The standard deviation of monthly changes in the spot price of live cattle is 1.2 cents per pound. The standard deviation of monthly changes in the futures
Premium Futures contract Derivative
Problem Set 3 - FINA 4200 Spring 2013 Due Wednesday February 26th before class I. Multiple Choices Chapter 2 1. According to the Capital Asset Pricing Model‚ investors are primarily concerned with portfolio risk‚ not the isolated risks of individual stocks. Thus‚ the relevant risk is an individual stock’s contribution to the overall riskiness of the portfolio. a. True b. False 2. Diversifiable risk‚ which is measured by beta‚ can be lowered by adding more stocks to a portfolio.
Free Stock Bond Par value
Problem set 2.2 This question Is mainly concentration on the price changed effect. As the price raise ‚what is the changed to the quantity‚ turnover ‚and the market equilibrium. And the assumption are as following: The demand of the concert remain unchanged‚ the supply of the concert also unchanged( which consist on 3 concerts) ‚so the supply curve is vertical. In the question‚ the concert price in 2005 is $500 and all the tickets have been sold out which are 12000seats. The turnover is 12000seats
Premium Supply and demand
1. Based on prices for comparable transactions‚ how would you assess the reasonableness of the Bet Performers $133 million purchase price in May 2008? To value a ship using the market approach‚ one had to identify a set of “comparable” ships where comparability was based on four main factors: ship type‚ size (DWT)‚ age‚ and condition. According to Exhibit 3‚ there are five ships which are the most comparable to Bet Performer. They are Martha Verity‚ Ingenious‚ Sumihou‚ Cape Sun‚ and Coppersmith
Premium Cash flow Discounted cash flow
International Finance Problem Set #4 1. A. Fundamental-based Forecasting: Analyzing the future on the basis of fundamental relationships between economic variables and exchange rate. Fixed exchange rates: The forecasting is based on indicators of sustainability such as current account deficits or surpluses‚ relative inflation rates and black market exchange rates. Floating exchange rates: The forecasting is based on factors that could influence macro economy such as monetary policies and
Premium Foreign exchange market Exchange rate
Biology 180 Problem Set 2 1. A population of marine gastropods has shell lengths that are normally distributed with a mean μ = 8 mm and variance σ2 = 2.15 mm2. a. what proportion of the population will have shell lengths between 6.5 mm and 8.5 mm? (3 points) b. what is the probability of finding a gastropod that has a shell length of exactly 7.5 mm? (1 point) c. if there are 1‚000 gastropods in an area‚ how many will have shell lengths greater than 5 mm? (3 points) 2. Childhood lead poisoning
Premium Normal distribution Binomial distribution Poisson distribution
Risk Management Problem‚ Set I T Blount FIN/415 Brenda Papillon May 6‚ 2013 6-1. (Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are currently paying 9.1 percent. Calculate the investment’s expected return and its standard deviation. Should Carter invest in the security? Probability Return .15 6% .30 9% .40 10% .15 15% Expected Rate of Return: (.15 x .06) + (.30 x .09) + (.40 x .1) + (.15 x
Premium Net present value Investment Rate of return