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- Which of the following is true? Neither FGT(α=2) nor FGT(α=3) satisfy the transfer sensitivity axiom. FGT(α=3) satisfies the transfer sensitivity axiom but FGT(α=2) does not. FGT(α=2) satisfies the transfer sensitivity axiom but FGT(α=3) does not. Both FGT(α=2) and FGT(α=3) satisfy the transfer sensitivity axiom.M3Q12. Assume that the underlying asset is Gold ETF (Gold Exchange Traded Fund), an investment asset with no storage cost and no dividend. The information of the stock price, maturity of the forward contract, and risk-free rate is provided below: Stock/Spot Price Maturity date of Forward Contract (2 years) Risk-Free Rate Based on the above information, which of the following is closest to the correct No- Arbitrage Forward Price (FO)? (A) 391.5727 (B) 357.8705 (C) 403.4979 (D) O Answer:
- The soft goods department of a large department store sells 184 units per month of a certain large bath towel. The unit purchase cost of a towel to the store is $2.5 and the cost of placing an order has been estimated to be $11. The store's inventory carrying cost is 33% of the purchase cost of the goods. Suppose that the demand rate is a constant and the EOQ model is used. What is the optimal annual cost of placing orders and holding inventory?You have been asked by the President of Tim Hortons Inc.’s (TMI) (Click here to review the TMI Case Study) to provide some consulting (advisory) service. Tim Hortons is considering opening its line of restaurants in China and is looking for a feasibility study that will include macroeconomic analysis and estimates of market potentials for THI products. There is a strong interest from investors in Hong Kong because there are a large number of Canadians in that country. Hong Kong, a former British colony, operates as an autonomous state but it is part of China. Opening THI restaurants in China can be considered as a two-stage process: (1) first open in Hong Kong and then (2) move into China. Hot on the heels of the success (or perhaps trying to show you can improve upon a less-than-satisfying performance) of your first foray into the assessment of macroeconomic conditions of a country (i.e., your research essay), you have decided to join forces with three of your peers to take it to…You have been asked by the President of Tim Hortons Inc.’s (TMI) (Click here to review the TMI Case Study) to provide some consulting (advisory) service. Tim Hortons is considering opening its line of restaurants in China and is looking for a feasibility study that will include macroeconomic analysis and estimates of market potentials for THI products. There is a strong interest from investors in Hong Kong because there are a large number of Canadians in that country. Hong Kong, a former British colony, operates as an autonomous state but it is part of China. Opening THI restaurants in China can be considered as a two-stage process: (1) first open in Hong Kong and then (2) move into China. Hot on the heels of the success (or perhaps trying to show you can improve upon a less-than-satisfying performance) of your first foray into the assessment of macroeconomic conditions of a country (i.e., your research essay), you have decided to join forces with three of your peers to take it to…
- The marketing team at Printer Press Associates has hired you on a contract basis to conduct important company analysis. Since you have experience in optimizing functions, the team plans to apply your skillset to help with company forecasts. On the first day of your employment, they hand you a sheet with an explicit function that mimics their short-run profit, and ask you determine the level of output where profit is maximized. Once this value is determined, they can use it as a baseline to predict future output levels that will enhance business longevity in the long run. They realize this is not a perfect science, but in a world of uncertainty based on probabilistic outcomes, this exercise will give them confidence they are headed in the right direction. The function is below along with some possible graphs to match. Choose the correct answer below. r=-30 + 200q - 5q² where = profit and q = outputThe market demand for a monopoly firm is estimated to be: Qd = 80,000 -400P + 3M + 2000PR where Q is output, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $60,000 and $15, respectively, in 2018. For 2018, the forecasted demand function is…You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 As a result of the effect of COVID-19 on the economy, the government has proposed an income cut policy. Labour unions…
- You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 Determine the equation of the demand curve for beansYou are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 Using the concept of own price elasticity, advise management on price change in order to increase revenue.You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 Explain to your Board of Directors why management should be worried about a rise in the price of groundnut.