EC3314 – Financial Economics Fall 2013 Vinay P NUNDLALL Problem Set 1 Question 1 Explain what is meant by the following: a. A broker holding securities in street name A brokerage account where the customer’s securities and assets are held under the name of the brokerage firm‚ rather than the name of the individual who purchased the security or asset. Although the name on the certificate is not that of the individual‚ they are still listed as the real and beneficial owner and have the rights
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Problem Set 3 Macroeconomics‚ ECON 2123 Sections L3 and L4 P. Sen Posted 9.11.14. Due 5 PM 17.11.14. ----------------------------------------------------------------------------------------------------------------------------------- 100 marks total Part I: True/False/Uncertain Please justify your answer with a short argument for each question and draw a diagram if necessary. (25 marks‚ 5 marks each: 2 marks for correct judgment and 3 marks for correct argument) 1. Suppose that workers in the Republic
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One: (10 points) Tom leases a farmer’s field and grows pineapples. Tom hires students to pick and pack the pineapples. The following table sets out Tom’s total product schedule. Labor (students) Total Products (pineapples/per day) 0 0 1 100 2 220 3 300 4 360 5 400 6 420 7 430 1. Calculate the marginal product of the third student; 2. Calculate the average product of three students; 3. Over what numbers of students does marginal product increase? 4. When marginal
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costs are 6%‚ and the risk costs are 10%. The average inventory is $300‚000‚ and 6000 orders are placed in a year. What are the annual ordering and carrying costs? Annual ordering cost = $75‚000+($25 * 6000) = $225‚000 Annual carrying cost: .08+. 06+. 10 = 24% Annual carrying cost = 300‚000 * .24 = $72‚000 9.8) Given the following data‚ calculate a level production plan‚ quarterly ending inventory‚ and average quarterly inventory. If inventory-carrying costs are $6 per unit per quarter
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Problem Set 4 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? a. Any financial asset that can be easily changed into physical money is included in the M1 money supply. b. Because checkable deposits are easily changed into physical money‚ they are included in M1; however‚ savings accounts and Treasury bills cannot be‚ due to the fact that
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GMB 713 PROBLEM SET NO. 2 PROBLEM SOLVING: Solve the following problems. Show all pertinent solutions. 1. A car battery dealer is trying to determine which of the brands of car battery he is selling has a longer life span. He conducted an investigation by interview his customers and was able to get the following results: Brand X Brand Y Mean life span 4.5 years 4.9 years Standard deviation
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Econ 214 Problem Set 5 1. What impact will an unanticipated increase in the money supply have on the real interest rate‚ real output‚ and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. The money supply in an economy is the benchmark by which interest rates are determined. The supply of money is directly tied into the amount of money that can be loaned and borrowed in various capacities. The more money there is to loan
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Unit 6: Personal and Professional Development P3 Action Plan Goals Goal target end date Actions Action target date Review 1 Review 2 Attend university open days June 2013 Search online for my career Get distinctions and decide on campus Start from October 2012 Revise for theory test July 2013 buy books and CD Revise for it December 2012 January 2013 Complete all assignments June 2013 Plenty of research Achieve distinctions September 2012 June 2013 P4 I have made some
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A-3 (Coverage ratio) The firm in the two preceding problems also had $6 million of principal repayments during the latest 12 months. Its marginal tax rate is 40%. Calculate the debt service coverage ratio. Debt-Service Coverage Ratio = (EBIT + 1/3 Rentals) / (Interest Expense + 1/3 Rentals + Principal Repayments / (1 - T)) = ($30 + $15 / 3) / ($10 + $15 / 3 + $6 / (1 - 0.40)) = 1.40 A-4 (WACC with rebalancing) Nathan’s Catering is a gourmet catering service located in Southampton‚ New York
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Unit 6: Supporting children’s play 1. Understand the play environment 1.1. Explain what is meant by the play environment The play environment is the provision that is made foe children in which they can learn‚ play and relax. It encompasses both the physical environment (such as the layout‚ equipment and furniture) and the “emotional” environment (the atmosphere‚ or ambience that is created). 1.2. Explain how the environment supports play. Play doesn’t just happen. It is true that babies and
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