Answer:
Optimal production quantity for the Tiptop model pen is 7.5 lot
Explanation:
Say, X and Y is the is the fliptop and tiptop quantity respectively, then
Profit = 1000*(X + Y)
Objective function: Maximize 1000*(X+Y) subject to;
Eq:1 3X+4Y=< 36
Eq:2 5X+4Y=< 40
Eq:3 5X+2Y=< 30
Using Excel Solver, we get:
Optimal production quantity for the Tiptop model pen is 7.5 lot
Answer:
P V = 1669,5
Explanation:
After seven years, future payment will be 9800$ and from there on we will have 23 annual payments more:
P V = 9800/(1+0.08)^23 = 9800/5,87 = 1669,5
Answer:
D. $1,800 Decrease
Explanation:
book value Fair value adjustment
01 Jan 10,000 8,000 2,000
Depreciation -1000 -800 -200
31 Dec 9,000 7,200 1,800 Decrease
Answer:
"Fell" "Harder"
Explanation:
When housing prices fell as they did beginning in 2006 following the housing market bubble, most banks and other lenders tightened the requirement for borrowers, making it harder for potential home buyers to obtain mortgages.
Answer:
Holding period return = 14.49%, Standard Deviation = 11.08 approx
Explanation:
Eco Scenario Dividend Stock Price HPR Prob Expected HPR
Boom 3 60 26 0.33 8.58
Normal 1.2 58 18.4 0.33 6.072
Recession 0.75 49 (0.5) 0.33 <u> (0.165)</u>
Expected HPR 14.49%
<u>Calculation Of Standard Deviation</u>
(A) (B) (A) - (B)
Given return Exp return d p 
60 50 3 26 14.49 11.51 0.33 43.718
58 50 1.2 18.4 14.49 3.91 0.33 5.045
49 50 0.75 (0.5) 14.49 14.99 0.33 <u> 74.15</u>
Total
= 122.91
wherein, d = deviation
p = probability
Standard Deviation =
=
= 11.08
<u></u>
<u>Working Note</u>:
Holding period return = 
Boom =
= 26%
Similarly, for normal =
= 18.4%
Recession =
= (0.5)%
figure in bracket indicates negative return