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Finance
. The subway fare in your town has just been increased from a current level of 50
cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership
of 30 percent.
a. Compute the price elasticity of demand for subway rides.
b. If the transit authority reduces the fare back to 50 cents, what impact would
you expect on the ridership? Why?
cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership
of 30 percent.
a. Compute the price elasticity of demand for subway rides.
b. If the transit authority reduces the fare back to 50 cents, what impact would
you expect on the ridership? Why?
Finance
Difficult decision: You are retired, you are not rich, you are trying to select which is the better investment? A Bond fund that pays about say 6% per year or a stable stock that pays a dividend of only say 2 or 3% per year but has a growth potential of say maybe 8% per year. Of course when you compare funds to stocks, it is not easy, too many variables. Each month you also have to withdraw say 5% in either one, bond or stocks, how can you decided. IRA rules relate that you must withdraw when you reach 59 1/2, so as you can see, you pretty much have to keep yourself alive financially.
Finance
b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its collection
period by five days, its inventory period by six days, and increase its payment period by two days?
New Sales
Sales/day
New COGS
COGS/day
Estimated AR if reduced by 5 days
Old collection period 93.58
New collection period 88.58
New AR estimate 5
Estimated Inventory if conversion period reduced by 6 days
COGS/day
Old conversion period
New conversion period
New inventory estimate
Estimated AP if payment period increased by 2 days
COGS/day
Old payment period
New payment period
New AP estimate
2012 working capital
Did the working capital increase or decrease from part a?
please just help me anser this part. I have no money and I have been trying to get this done for 3 days now I need this by 8 am tomorrow
period by five days, its inventory period by six days, and increase its payment period by two days?
New Sales
Sales/day
New COGS
COGS/day
Estimated AR if reduced by 5 days
Old collection period 93.58
New collection period 88.58
New AR estimate 5
Estimated Inventory if conversion period reduced by 6 days
COGS/day
Old conversion period
New conversion period
New inventory estimate
Estimated AP if payment period increased by 2 days
COGS/day
Old payment period
New payment period
New AP estimate
2012 working capital
Did the working capital increase or decrease from part a?
please just help me anser this part. I have no money and I have been trying to get this done for 3 days now I need this by 8 am tomorrow
Finance
I am so lost in all of this. can somone help me? b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its collection
period by five days, its inventory period by six days, and increase its payment period by two days?
New Sales
Sales/day
New COGS
COGS/day
Estimated AR if reduced by 5 days
Old collection period 93.58
New collection period 88.58
New AR estimate 5
Estimated Inventory if conversion period reduced by 6 days
COGS/day
Old conversion period
New conversion period
New inventory estimate
Estimated AP if payment period increased by 2 days
COGS/day
Old payment period
New payment period
New AP estimate
2012 working capital
Did the working capital increase or decrease from part a?
Robinson expects its 2012 sales and cost of goods sold to grow by 20 percent over their 2011 levels.
a. What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion
cycle remain at their 2011 levels? What will be its net investment in working capital?
Receivables
Inventories
Payments
Net investment in working capital
New Sales
Sales/day
New COGS
COGS/day
b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its inventory
period by ten days?
Estimated AR if reduced by 0 days
Sales/day
Old collection period
New collection period
New AR estimate
Estimated Inventory if conversion period reduced by 10 days
COGS/day
Old conversion period
New conversion period
New inventory estimate
Estimated AP if payment period increased by 0 days
COGS/day
Old payment period
New payment period
New AP estimate
2012 working capital
Did the working capital increase or decrease from part a?
period by five days, its inventory period by six days, and increase its payment period by two days?
New Sales
Sales/day
New COGS
COGS/day
Estimated AR if reduced by 5 days
Old collection period 93.58
New collection period 88.58
New AR estimate 5
Estimated Inventory if conversion period reduced by 6 days
COGS/day
Old conversion period
New conversion period
New inventory estimate
Estimated AP if payment period increased by 2 days
COGS/day
Old payment period
New payment period
New AP estimate
2012 working capital
Did the working capital increase or decrease from part a?
Robinson expects its 2012 sales and cost of goods sold to grow by 20 percent over their 2011 levels.
a. What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion
cycle remain at their 2011 levels? What will be its net investment in working capital?
Receivables
Inventories
Payments
Net investment in working capital
New Sales
Sales/day
New COGS
COGS/day
b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its inventory
period by ten days?
Estimated AR if reduced by 0 days
Sales/day
Old collection period
New collection period
New AR estimate
Estimated Inventory if conversion period reduced by 10 days
COGS/day
Old conversion period
New conversion period
New inventory estimate
Estimated AP if payment period increased by 0 days
COGS/day
Old payment period
New payment period
New AP estimate
2012 working capital
Did the working capital increase or decrease from part a?
Finance
On Oct. 7, 2012 the Bureau of Labor Statistics announced that the U.S. unemployment rate fell to 7.8% in September 2012, dropping below 8% for the first time in nearly 4 years. Most people consider this announcement helped President Obama to win the re-election. For example, the poll from Gallup showed 47% support in a sample of 3050 registered voters on Sept. 19 and 49% support in a sample of 3050 registered voters on Oct. 8.
(a) According to the poll, did the announcement raise the support rate of the President? (use p-value approach, at 95% significance level)
(b) According to your test and your result, if the announcement truly raised the support rate, you have made the correct decision? Or a Type I error? Or a Type II error?
(a) According to the poll, did the announcement raise the support rate of the President? (use p-value approach, at 95% significance level)
(b) According to your test and your result, if the announcement truly raised the support rate, you have made the correct decision? Or a Type I error? Or a Type II error?
Finance
The standard deviation of a stock is commonly used as one indicator for the risk associating the stock. To analyze the risk, or volatility, associated with investing in Chevron Corporation common stock, a sample of the monthly total percentage return for 12 months was taken. The returns for the 12 months of 2005 show that the average monthly return was 1.17% and standard deviation 7.58% in these 12 months. You have a portfolio with similar average return and a standard deviation 8%. Is the Chevron stock riskier than the portfolio? (Use p-value approach, at 99% confidence level.
Finance
When it started a few years ago, a firm issued shares at $2.00 a share and raised $600,000 in equity. These shares now trade at $6.00 a share on the open market. The debt equity mix is currently 10%. The firm has generated a net profit of $150,000 this year and as a rule pays out 50% of its profits as dividends to shareholders. How many shares are there in issue?
Finance
Claims on assets would be most relevant in a situation where a company is: (Choose the correct answer)
being liquidated
a going concern
making a loss
making a profit
being liquidated
a going concern
making a loss
making a profit
Finance
When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.
Question 19 options:
cultural and social
economic
legal
political
competitive
Question 19 options:
cultural and social
economic
legal
political
competitive
Finance
Which of the following statements is CORRECT?
a. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par
while the other sells at a premium above par. The premium bond must have a lower current
yield and a higher capital gains yield than the par bond.
b. A bond’s current yield must always be either equal to its yield to maturity or between its yield
to maturity and its coupon rate.
c. If a bond sells at par, then its current yield will be less than its yield to maturity.
d. If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
e. A discount bond’s price declines each year until it matures, when its value equals its par
value.
a. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par
while the other sells at a premium above par. The premium bond must have a lower current
yield and a higher capital gains yield than the par bond.
b. A bond’s current yield must always be either equal to its yield to maturity or between its yield
to maturity and its coupon rate.
c. If a bond sells at par, then its current yield will be less than its yield to maturity.
d. If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
e. A discount bond’s price declines each year until it matures, when its value equals its par
value.
