Finance

Use the compound interest formula to compute the balance in the following account after the stated period of time, assuming interest is compounded annually. $8000 invested at an APR of 4.9% for 22 years. The balance in the account after 22 years is $ (Round to the nearest cent as needed.) Use the appropriate compound interest formula to compute the balance in the account after the stated period of time $2,000 is invested for 14 years with an APR of 5% and monthly compounding. The balance in the account after 14 years is $ (Round to the nearest cent as needed.)

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1. Capital, revenue, and expense accounts are all part of which of the following account categories?

a. assets b. marketable securities c. investments d. owners’ equity 2. Which account normally has a debit balance? a. sales b. accounts payable c. retained earnings d. equipment 3. Which of the following kinds of accounts would appear in a general ledger? a. liability accounts b. revenue accounts c. capital accounts d. all of the …

1. Capital, revenue, and expense accounts are all part of which of the following account categories? Read More »

Consider a two-firms Cournot model with constant returns to scale. Assume also that the inverse demand function is P= 100 – 20. with marginal cost equal to 20for both firms, where Q = 41+4. a) Derive the Nash equilibrium of this model and compare it with Monopoly and Perfect competition b) How do equilibrium outputs and profits vary when firml’s cost changes. Draw a picture of this outcome c) Calculate Stackleberg equilibrium. Draw a picture of this outcome using best- response functions and isoprofit contours

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Read the following cases and determine which of the four dimensions (Achievement, Power, Affiliation, and Autonomy) would be most important and which would be second most important when that person is making a decision about which action to take.

Put your responses in the tables below each person. Be sure to give me specific information from the mini-case to support your conclusions. BE CAREFUL NOT TO CONFUSE AUTONOMY WITH ACHIEVEMENT OR POWER. Martha Merriweather Martha has been with Performance Horizons for seven years, steadily moving up the corporate ladder. She was noticed early on …

Read the following cases and determine which of the four dimensions (Achievement, Power, Affiliation, and Autonomy) would be most important and which would be second most important when that person is making a decision about which action to take. Read More »

Amina is a financial analyst at McKinsey Consultant. She is currently assigned to value the Lagoona’s F&B project in Bahrain whether the project is feasible to undertake or not. The business is estimated to sell 50,000 units, with a selling price of BD 1.25/unit. The variable cost per unit is BD 0.15, and fixed cost of BD 11,000. The Lagoona’s requires BD 20,000 as working capital for next 3 years to run their business. The Lagoona’s F&B has a fixed asset of BD54,000 that assume to be fully depreciated for next 3 years. Amina has been informed to use straight- line method to find deprecation cost. The current corporate tax is 15%. Required rate of return is 10%. By using capital budgeting techniques, Amina needs to answer following things: a. Fill-in the missing information of pro-forma information below (1 mark) b. Calculate the cash flow from operating asset or total cash flow (CFFA) (1 mark) c. Calculate the NPV of the project and should Amina accept/reject the project? Explain your reasons. (2 marks) Pro-forma income statement Sales (50,000 units at BD 1.25/unit) BD Variable Costs (BD 0.15/unit) Gross profit Fixed costs Depreciation EBIT Taxes (15%) Net Income (11,000)

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