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True. Inelastic implies that quantity demanded does not change with price change. SO, in this scenario the change in price should be smaller and smaller the more inelastic the good is.
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chapter 8:8-1 Widget MarketThe widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the fol- lowing prices: $10, $12, $20, $24, and $29. What is the equilibrium price and quantity in a competitive market?8-3 Hand SanitizerDue to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling production capacity?Note:1-you should use the book to answer all these questions (you should not use any additional sources) , I will give you the link of the book.2-you should not cheating from internet or other sources.3-Academic writing
FIN 350 Strayer Univeristy Corporate Financial Modelling Questions
Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathemati ...
FIN 350 Strayer Univeristy Corporate Financial Modelling Questions
Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link.Identify two reasons for the existence of different valuations produced by the Price-Earnings Method. Which would you use and why?Briefly distinguish each of the three forms of market efficiency from each other. Which do you think best represents US markets?Stock ABC has a beta of 1.5, a risk-free rate of 2.5 percent, and a market return of 7.5 percent. What is the expected return for this stock?Company QRS just paid a dividend of $0.75. It is expected this dividend will grow at a constant rate of 4 percent indefinitely. What is the price of this stock if the required return is 10 percent?You make the following investments in stocks: $5,000 in GE, $7,000 in BA, and $8,000 in XON. The betas for the stocks are GE: 1.05; BA: 0.97, and XON: 1.24. What is the portfolio beta?Why would a bank be interested in a long hedge?Briefly describe the characteristics of a single stock future. What type of investor might be interested in this?You decided to buy Treasury bill futures contracts with a quoted price was 96-50. When you close this position, the quoted price was 95-25. Determine the profit or loss per contract, ignoring transaction costs.You decided to sell Treasury bill futures contracts with a quoted price was 92-50. When you close this position, the quoted price was 91-75. Determine the profit or loss per contract, ignoring transaction costs.You sell S&P 500 stock index futures that specified an index of 1,725. When you close this position, the index specified by the futures contract was 1,815. Determine the profit or loss, ignoring transaction costs.Would you characterize the U.S. dollar as a freely floating or dirty float system? What characteristics support your answer?What is direct central bank intervention in the currency markets? Provide an example of this from the last 50 years.Assume that Canada suddenly experiences high inflation. How might this affect the value of the Canadian dollar according to the purchasing power parity (PPP) theory?Australia's central bank decides to increase the value of the Australian dollar against the Japanese yen. How might it use direct intervention to do this?Assume the following information: i. Mexican one-year interest rate = 15 percent ii. U.S. one-year interest rate = 11 percent iii. If interest rate parity exists, what would be the forward premium or discount on the Mexican peso's forward rate? Would covered interest arbitrage be more profitable to U.S. investors than investing at home? Explain.Create a balance sheet for a typical bank, showing its main liabilities (sources of funds) and assets (uses of funds). The Federal Reserve has increasingly favored the use of Repurchase Agreements as part of its open market operations. Briefly describe these and why the Fed or banks prefer to use them.Banks engage in proprietary trading as part of their operations. Briefly speculate on why they now must adhere to more stringent trading activity as a result of the 2008-09 financial crises.Briefly describe two off-balance-sheet activities and why banks favor the use of these.If you were the CEO of a US bank, would you consider establishing a foreign branch? What might be a concern related to doing so?
Ashford University Aggregate Demand and Aggregate Supply Discussion
Prior to beginning work on this discussion, read Chapter 6 in the course text and respond to the following components:Disc ...
Ashford University Aggregate Demand and Aggregate Supply Discussion
Prior to beginning work on this discussion, read Chapter 6 in the course text and respond to the following components:Discuss the reasons why the aggregate demand (AD) curve slopes downward.What causes the AD curve and aggregate supply (AS) curve to shift, respectively?How would a change in AD and AS affect the economy, respectively?Why do Keynesian economists emphasize AD whereas classical economists emphasize AS?
FIN 321 University of Maryland Global Campus General Approach to Client Plan Preparation Paper
INSTRUCTIONS
Attached please find the case study of James Wilson and Harold Newton. James and Harold are a same-sex
coup ...
FIN 321 University of Maryland Global Campus General Approach to Client Plan Preparation Paper
INSTRUCTIONS
Attached please find the case study of James Wilson and Harold Newton. James and Harold are a same-sex
couple and that have been together for seven years; they both live in the house that Harold owns.
Harold has inherited money in a generation-skipping trust from his mother; the trust allows for distributions for
health, education, maintenance, or support. Most years, Harold has not taken withdrawals from this account.
The trust reverts to Harold’s brother at his death if he has no children. Harold has a will that leaves everything
to his parents; Harold has a power-of-attorney and health care power-of-attorney that names his father as
attorney-in-fact. Harold runs a successful consulting practice out of his home. Harold states that he is fairly
aggressive, and his investment account is almost entirely (90%) equity investments.
James has no estate documents. James contributes $3,000/year to his 401(k), just enough to obtain the
maximum matching contribution offered by his employer. In contrast, Harold contributes $10,000 / year to his
SAR SEP IRA
James and Harold live a fairly extravagant lifestyle of dining out and vacations, funded primarily from Harold’s
income and assets. However, James still provides the primary support for his basic living needs.
Neither James nor Harold has any life or disability insurance.
James is the beneficiary of Harold’s SAR SEP IRA.
James’ sister is the beneficiary of his 401(k)
The primary residence mortgage is a 5/1 ARM 30-year loan and was has taken out exactly 2 years ago. Harold
has made 24 payments at a rate of 7.25%.
James is currently paying a 16.99% annual interest rate on his credit card debt.
GOALS
1. Save for retirement
2. Provide for each other in the event of death.
NEXT
Using the information attached about James and Harold create a financial plan using MoneyGuide Pro (see
below and attached for directions.).
QUESTIONS
Based on your MondeyGuide Pro financial plan for James and Harold:
1. Summarize the MoneyGuide Pro recommendation
2. Do you agree with the recommendations?
3. Would you suggest they lower their risk tolerance?
4. How would you reallocate Harold investments? (currently they are 90% equity)
5. How would you implement the recommendations? (prioritization, time, money)
6. In your opinion, how often should the financial plan of Harold and James be monitored?
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FIN 350 Strayer Univeristy Corporate Financial Modelling Questions
Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathemati ...
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Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link.Identify two reasons for the existence of different valuations produced by the Price-Earnings Method. Which would you use and why?Briefly distinguish each of the three forms of market efficiency from each other. Which do you think best represents US markets?Stock ABC has a beta of 1.5, a risk-free rate of 2.5 percent, and a market return of 7.5 percent. What is the expected return for this stock?Company QRS just paid a dividend of $0.75. It is expected this dividend will grow at a constant rate of 4 percent indefinitely. What is the price of this stock if the required return is 10 percent?You make the following investments in stocks: $5,000 in GE, $7,000 in BA, and $8,000 in XON. The betas for the stocks are GE: 1.05; BA: 0.97, and XON: 1.24. What is the portfolio beta?Why would a bank be interested in a long hedge?Briefly describe the characteristics of a single stock future. What type of investor might be interested in this?You decided to buy Treasury bill futures contracts with a quoted price was 96-50. When you close this position, the quoted price was 95-25. Determine the profit or loss per contract, ignoring transaction costs.You decided to sell Treasury bill futures contracts with a quoted price was 92-50. When you close this position, the quoted price was 91-75. Determine the profit or loss per contract, ignoring transaction costs.You sell S&P 500 stock index futures that specified an index of 1,725. When you close this position, the index specified by the futures contract was 1,815. Determine the profit or loss, ignoring transaction costs.Would you characterize the U.S. dollar as a freely floating or dirty float system? What characteristics support your answer?What is direct central bank intervention in the currency markets? Provide an example of this from the last 50 years.Assume that Canada suddenly experiences high inflation. How might this affect the value of the Canadian dollar according to the purchasing power parity (PPP) theory?Australia's central bank decides to increase the value of the Australian dollar against the Japanese yen. How might it use direct intervention to do this?Assume the following information: i. Mexican one-year interest rate = 15 percent ii. U.S. one-year interest rate = 11 percent iii. If interest rate parity exists, what would be the forward premium or discount on the Mexican peso's forward rate? Would covered interest arbitrage be more profitable to U.S. investors than investing at home? Explain.Create a balance sheet for a typical bank, showing its main liabilities (sources of funds) and assets (uses of funds). The Federal Reserve has increasingly favored the use of Repurchase Agreements as part of its open market operations. Briefly describe these and why the Fed or banks prefer to use them.Banks engage in proprietary trading as part of their operations. Briefly speculate on why they now must adhere to more stringent trading activity as a result of the 2008-09 financial crises.Briefly describe two off-balance-sheet activities and why banks favor the use of these.If you were the CEO of a US bank, would you consider establishing a foreign branch? What might be a concern related to doing so?
Ashford University Aggregate Demand and Aggregate Supply Discussion
Prior to beginning work on this discussion, read Chapter 6 in the course text and respond to the following components:Disc ...
Ashford University Aggregate Demand and Aggregate Supply Discussion
Prior to beginning work on this discussion, read Chapter 6 in the course text and respond to the following components:Discuss the reasons why the aggregate demand (AD) curve slopes downward.What causes the AD curve and aggregate supply (AS) curve to shift, respectively?How would a change in AD and AS affect the economy, respectively?Why do Keynesian economists emphasize AD whereas classical economists emphasize AS?
FIN 321 University of Maryland Global Campus General Approach to Client Plan Preparation Paper
INSTRUCTIONS
Attached please find the case study of James Wilson and Harold Newton. James and Harold are a same-sex
coup ...
FIN 321 University of Maryland Global Campus General Approach to Client Plan Preparation Paper
INSTRUCTIONS
Attached please find the case study of James Wilson and Harold Newton. James and Harold are a same-sex
couple and that have been together for seven years; they both live in the house that Harold owns.
Harold has inherited money in a generation-skipping trust from his mother; the trust allows for distributions for
health, education, maintenance, or support. Most years, Harold has not taken withdrawals from this account.
The trust reverts to Harold’s brother at his death if he has no children. Harold has a will that leaves everything
to his parents; Harold has a power-of-attorney and health care power-of-attorney that names his father as
attorney-in-fact. Harold runs a successful consulting practice out of his home. Harold states that he is fairly
aggressive, and his investment account is almost entirely (90%) equity investments.
James has no estate documents. James contributes $3,000/year to his 401(k), just enough to obtain the
maximum matching contribution offered by his employer. In contrast, Harold contributes $10,000 / year to his
SAR SEP IRA
James and Harold live a fairly extravagant lifestyle of dining out and vacations, funded primarily from Harold’s
income and assets. However, James still provides the primary support for his basic living needs.
Neither James nor Harold has any life or disability insurance.
James is the beneficiary of Harold’s SAR SEP IRA.
James’ sister is the beneficiary of his 401(k)
The primary residence mortgage is a 5/1 ARM 30-year loan and was has taken out exactly 2 years ago. Harold
has made 24 payments at a rate of 7.25%.
James is currently paying a 16.99% annual interest rate on his credit card debt.
GOALS
1. Save for retirement
2. Provide for each other in the event of death.
NEXT
Using the information attached about James and Harold create a financial plan using MoneyGuide Pro (see
below and attached for directions.).
QUESTIONS
Based on your MondeyGuide Pro financial plan for James and Harold:
1. Summarize the MoneyGuide Pro recommendation
2. Do you agree with the recommendations?
3. Would you suggest they lower their risk tolerance?
4. How would you reallocate Harold investments? (currently they are 90% equity)
5. How would you implement the recommendations? (prioritization, time, money)
6. In your opinion, how often should the financial plan of Harold and James be monitored?
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