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Swim suits unlimited is in a highly seasonal business, and the following summary alance sheet data show ts assets an liabilities at peak and off peak seasons. From the data we may conclude that
1. What is the current inflation rate and nominal interest rate?
2. What will happen in ( 1.) if money supply increases by 15%?
Suppose an economies real GDP is N$ 30 000 in year 1 and N$ 31200 in year 2. what is the growth rate of its real GDP?
Why part-time workers instead of full-time?
Can you interpret the factor?

PLANNING IMPLEMENTATION FEEDBACK
Variables Factor 1 Variables Factor 1 Variables Factor 1
A1 0.8711 A5 0.7483 A9 0.8052
A2 0.9311 A6 0.7571 A10 0.8304
A3 0.8901 A7 0.8671 A11 0.7397
A4 0.7928 A8 0.7797 A12 0.6281
briefly discuss two other complications that the minister of finance should consider in the implementation of fiscal policy ( excluding crowding out and net exports).
Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are
$1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10.
(a) Determine the breakeven output (in dollars).
(3 marks)
(b) Determine the number of barrels of oil that offshore must produce and sell in order to earn
a target (operating) profit of $1,500,000.
(3 marks)
(c) Determine the degree of operating leverage at an output of 400,000 barrels.
(3 marks)
(d) Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a
standard deviation of 100,000 barrels, determine the probability that Offshore will incur an
operating loss.
Superior Metals Company has seen its sales volume decline over the last few years as the
result of rising foreign imports. In order to increase sales (and hopefully, profits), the firm is
considering a price reduction on luranium - a metal that it produces and sells. The firm currently
sells 60,000 pounds of luranium a year at an average price of $10 per pound. Fixed costs of
producing luranium are $250,000. Current variable costs per pound are $5. The firm has
determined that the variable cost per pound could be reduced by $0.50 if production volume
could be increased by 10 percent (fixed costs would remain constant). The firm's marketing
department has estimated the arc elasticity of demand for luranium to be -1.5.
(a) How much would Superior Metals have to reduce the price of luranium in order to achieve
a 10 percent increase in the quantity sold?
(8 marks)
(b) What would the firm's (i) total revenue, (ii) total cost, and (iii) total profit be before and
after the price cut?
(7 marks)
[TOTAL:
Briefly explain the difference between saving and dissaving?
5. Your boss, Sally Maloney, treasurer of Fred Clark Enterprises (FCE), asked you to help her estimate the intrinsic value of the company's stock. FCE just paid a dividend of $1.00, and the stock now sells for $15.00 per share. Sally asked a number of security analysts what they believe FCE's future dividends will be, based on their analysis of the company. The consensus is that the dividend will be increased by 10% during Years 1 to 3, and it will be increased at a rate of 5% per year in Year 4 and thereafter. Sally asked you to use that information to estimate the required rate of return on the stock, rs, and she provided you with the following template for use in the analysis.
Sally told you that the growth rates in the template were just put in as a trial, and that you must replace them with the analysts' forecasted rates to get the correct forecasted dividends and then the estimated TV. She also notes that the estimated value for rs, at the top of the template, is also just a guess, and you must replac
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