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Description 1. (20) Automobile dealerships often advertise promotions such as “no payments for 90 days!” or similar deals that sound too good to be true. The goal, of course, is to entice buyers with the ever-tantalizing prospect of getting something now without having to worry about how to pay for it until later. Suppose that you are looking to buy a car priced at $35,000 and are offered a loan with a down payment of $5,000 and an APR of 6% over 60 months. (a) (5) Calculate the monthly payment for this loan. (b) (5) Now suppose that the dealer offers you “no money down, no interest, and no payments for 90 days!” and you naively interpret this to imply that the remaining payments are unchanged. In present value terms, what price do you think that you are paying for the car? (c) (5) Somewhat coming to your senses, you realize that your monthly payment will go up to offset the missing initial payments, but still believe that you will see some savings because of the time value of avoiding interest for three months. What monthly payment do you calculate and what do price do you think you are paying? (d) (5) Finally, you realize that if the dealer had any intention of offering you a discount, he would have let you know how much you’d be saving, and that “no interest” simply means that any unpaid interest is added to the principal. What is your actual monthly payment? 2. (20) One of the shortcomings of the dividend discount model is that it assumes that the firm can grow at the same rate indefinitely, and projecting a company’s future prospects based only on a brief snapshot of its current status can lead to wildly unrealistic estimates of its growth opportunities. Suppose that shares of Fly By Night Inc. are currently priced at P0 = 100, compared to a book value of B0 = 20 per share, with forecasted earnings of E1 = 8 and a scheduled dividend payment of D1 = 3 per share. (a) (5) Using the constant growth model, estimate Fly By Night’s growth rate g and market capitalization rate r. Do these numbers seem plausible to you? (b) (5) Upon closer inspection, you observe that all of Fly By Night’s growth opportunities consist only of a single investment project this year. After this year it cannot repeat this or undertake any other positive NPV project, and must pay out all subsequent earnings to shareholders. Suppose you believe that you are the only one who is aware of this, while all other investors are convinced that the stock will continue growing at the same rate forever. What should the stock be priced at? (c) (10) You now realize that all investors are well aware of Fly By Night’s limited growth opportunities, and that this is already reflected in its price. What is the correct discount rate? 3. (30) Consider a portfolio choice problem with a risk-free asset with return rf and two risky assets, the first with mean return ?1 = 0.12 and standard deviation ?1 = 0.4 and the second with mean ?2 = 0.08 and standard deviation ?2 = 0.3, with correlation ?12 = 0. For any stock portfolio let ? denote the proportion invested in stock 1. (a) (10) Find the weight ? ? that minimizes portfolio standard deviation ?p. (b) (5) Consider the tangency portfolio and let ?? denote the weight it places on stock 1. Find the condition that defines this value, but do not solve for it, and explain how it would compare to ? ?. (c) (5) Now consider varying the risk-free rate rf . Again without solving anything, explain how you would expect ?? to vary as rf increases. (d) (10) Show how the slope of the tangent line changes with rf . Recall a useful theorem that allows you to do this without ever actually solving for ??. 4. (30) Let Cara be a consumer who she exhibits no time preference ? = 1 and receives an endowment of W in each of two periods. There exists a single risky asset currently priced at P0 = 1 that next period has payoffs of ????3 w/prob.32 P1= 0 w/prob.13 1 Consider Cara’s two-period utility maximization problem. max u(C0) + ?E[u(C1)] ? s.t. C0 = W ? ?P0 C1 = W + ?P1 (a) (10) Find the first order condition for Cara’s optimization problem. (b) (10)Predictably,Cara’sutilityfunctionexhibitsconstantabsoluteriskaversionu(C)=1?e??C. Show that the number of shares she buys does not depend on her endowment W. (c) (10) Suppose that Cara has a twin sister, Cora, who faces the same optimization problem but whose utility function instead exhibits constant relative risk aversion u(C) = C1?? . Show that the number of 1?? shares she buys is proportional to her endowment W.

Description The assignment should have a minimum of 1500 words (spread roughly evenly throughout the questions) and have a minimum of 4 scholarly sources. Don’t be excessively wordy in an attempt to hit the 1500-word requirement. No amount of words can make up for an incorrect answer. 1. Explain the difference between a movement along a supply curve and a shift in the supply curve. 2. Suppose you decide to start your own business. Give a brief overview of the purpose and location of your new firm. 3. Refer to the company that you proposed in the previous question. For each scenario below, use a supply and demand analysis to make a prediction regarding both the equilibrium price and quantity for your good or service. That is, for each part, tell me whether you expect the equilibrium price of your product to rise or fall AND whether you expect equilibrium quantity to rise or fall. Also, include in your explanation which curve is shifting and which shifter variable is affected. a) Your customers’ incomes increase. Be sure to note whether the good or service you are providing is a normal good or an inferior good. b. The minimum wage is raised in your area, and you must pay your employees more. (Assume you have employees for this scenario, even if that was not part of your initial plan.) c. A firm that offers the same good or service moves into town. d. Your customers expect the price of your good or service to fall in the future. e. The price of a good or service that can be substituted for yours falls (the substitute becomes cheaper). f. The scenarios in both a) and b) occur at the same time. 4. Use the linear demand and supply curves shown below to answer the following questions. You must show all calculations step-by-step or no credit will be given. a) The market or equilibrium price is $__________. b) When 10,000 units are produced and consumed, total consumer surplus is $__________, and total producer surplus is $__________. c) At the market price in part a, the net gain to consumers when 10,000 units are purchased is $__________. d) At the market price in part a, the net gain to producers when they supply 10,000 units is $__________. e) The net gain to society when 10,000 units are produced and consumed at the market price is $__________, which is called __________. f) In market equilibrium, total consumer surplus is $__________, and the total producer surplus is $__________. g) The net gain to society created by this market is $__________.

Description Suppose the treasurer of your company finds out you are enrolled in BUS450 International Finance. Knowing this, your treasurer seeks your advice. Your company has extra cash reserves of $100,000,000 and needs to invest it for 6 months. The treasurer has heard that investing in foreign currencies for the short term might have a higher yield when compared to a short term United States investment. Research the following: The US 6 month interest rate The 6 month interest rate of a country of your choosing The spot exchange rate of your selected currency relative to the US Dollar The six-month forward exchange rate per the US Dollar.

Description Resource: Pastas R Us, Inc. Database  In preparation for writing your report to senior management next week, compute the following descriptive statistics analyses for each column of data (each variable) with Excel®. Answer the questions below in your Excel sheet or in a separate Word document: Insert a new column in the database that corresponds to “Annual Sales.” Annual Sales is the result of multiplying a restaurant’s “SqFt.” by “Sales/SqFt.” Calculate the mean, standard deviation, skew, 5-number summary, and interquartile range (IQR) for each of the variables. Create a box-plot for the “Annual Sales” variable. Does it look symmetric? Would you prefer the IQR instead of the standard deviation to describe this variable’s dispersion? Why? Create a histogram for the “Sales/SqFt” variable. Is the distribution symmetric? If not, what is the skew? Are there any outliers? If so, which one(s)? What is the “SqFt” area of the outlier(s)? Is the outlier(s) smaller or larger than the average restaurant in the database? What can you conclude from this observation? What measure of central tendency is more appropriate to describe “Sales/SqFt”? Why?

Description Background Strategic planning is critical to the growth and sustainability of any organization. An organization cannot design and implement strategic initiatives without an estimate of future profitability. Organizations acquire this insight by constructing profit projections. If a firm's profit projection is inaccurate, it will ultimately lead to misguided decisions that may adversely impact the firm's performance. Thus, firms must be diligent and meticulous in the construction of their profit projections. Instructions You were recently promoted to a senior financial analyst at Capital Financial, and have been tasked with forecasting the firm's 2018 profits. To develop the profit projection, you will apply the Percent of Sales method. The key consideration for this method is that income statement data sets will increase with sales. Create Capital Financial's profit projection for 2018 using the spreadsheet provided below. File download: Profit Projection Spreadsheet Important notes regarding the 2017 forecast information: Costs, excluding depreciation, were 78% of sales. Depreciation was 7.333% of sales in 2017. Capital Financial pays a 35% tax rate. Where "n/a" is specified, the abbreviation indicates that percentage of sales is not applicable for that set of data. Capital Financial is forecasting an 18% growth in sales from 2017 to 2018. Part 1 Download and open the spreadsheet template provided above. Consider the values within the spreadsheet and the information above, then do the following: In the first table in the spreadsheet, calculate the following as a percentage of sales for 2017: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) EBIT (Earnings Before Interest, and Taxes) Pretax Income Net Income In the second table in the spreadsheet calculate the following for 2018: Cost Except Depreciation Depreciation Interest Expense Income Tax (35%) In the second table in the spreadsheet, forecast the following profitability metrics for 2018: EBITDA EBIT Pretax Income Net Income Save your Microsoft Excel Spreadsheet. (Mac users, please remember to append the ".xlsx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below: Jstudent_exampleproblem_101504 Part 2 In a separate Word document, address the following: Explain the premise for the percentage of sales method. Describe how an accurate profit projection supports the decision making process within the organization. Save your Microsoft Word document. (Mac users, please remember to append the ".docx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below: Jstudent_exampleproblem_101504

Description Consider an organization in your field or industry. Describe the essential systems necessary to facilitate continuous change without compromising quality or causing burnout among employees. Describe three factors to consider when making sure that the changes made become permanently imbedded in the organization's culture. Discussion Question 1 (150 words) What is your reaction to change in your personal history? What personal tools do you implement to help yourself navigate change? Discussion Question 2 (150 words)

Description I Have attached the results from the first portion which is needed for the budget justification. I have also attached the required format.

Description Multiple-Choice 50 Question Select the response that best completes the statement or answers the question.

Description Discussion 1 Prior to beginning work on this discussion, Read Chapters 1 and 2 of Macroeconomics: Private and Public Choice. Read Chapter 7 of Popular Economics: What the Rolling Stones, Downton Abbey, and LeBron James Can Teach You About Economics. For this discussion, Define capitalism and socialism and provide examples of countries for both structures. Next, discuss why capitalism and socialism are currently being spotlighted in U.S. politics giving the pros and cons to each organizational structure. Be sure to be specific and give supporting facts, not just opinions. Finally, address the question: Does capitalism create wealth inequality and is this necessarily a bad outcome? Discussion 2 Prior to beginning work on this discussion, Read Chapters 3 and 4 of Macroeconomics: Private and Public Choice. For this discussion you will debate with your peers the concept of increasing minimum wage. In order to participate in a knowledgeable debate, you must have a firm understanding of each side of the issue. Your textbook discusses minimum wage in detail and like many traditional economists, for the most part, does not support increases in the minimum wage citing the negative impacts that such increases may create. Research at least two scholarly and/or credible resources (other than the Macroeconomics: Private and Public Choice text). Use factual information; do not simply document or restate opinion. Write an initial post of at least 400 words that either supports or does not support an increase in minimum wage. Be sure to use economist lingo and to include facts and support your response with at least two scholarly and/or credible resources.

Description Unit VI Essay Instructions Auctions can be an important tool for selling goods and gathering information. Auctions are used in multiple venues including agriculture, eBay, and distressed asset sales. The seller does not have to worry about estimating demand and setting a price because the demanders will do that through the auction process. Write an essay examining the value of auctions in the economy by addressing the following items. Explain the difference between oral auctions and second-price auctions, including how they work and their results. Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid. Explain how the number of bidders in a common value auction affects the outcome of the auction. Relate this to the effect on price in different market structures based on the number of producers. Auctions lead to outcomes where buyers reveal their value for the products being auctioned. To successfully price discriminate, firms often rely on buyers revealing their value for products. Explain the conditions necessary for firms to be able to price discriminate. Your essay must be at least three pages in length (not counting the title and references pages) and include at least three peer-reviewed resources. Adhere to APA Style when writing your essay, including citations and references for sources used. Be sure to include an introduction. Please note that no abstract is needed.