solve the following questions.Answer all accurately

Which textbook is likely to be worth more: Principles of Microeconomics by Hubbard and O'Brien (used in EC215 class) or Advanced Microeconomics Theory (used in EC 420, an upper level economics class)? Demand for Principles of Microeconomics textbook is much higher than demand for an advanced microeconomics book, since many business students take an introductory course, but few students major in economics. Price of Advanced Microeconomics textbook: $271.55 (Print only, no digital product) Price of Principles of Microeconomics textbook: 249.14 (Print only, no digital product) In the space below, use a demand and supply diagram to explain why Advanced Microeconomics textbook, a relatively less popular book, sells for a much higher market price than the Principles of Microeconomics textbook.A buyer and seller of crude oil futures contracts with an underlying value of 100,000 are required to provide an initial margin of 15%. The table below provides information on the change in the value of the futures contracts for ve consecutive days of the week. Monday Tuesday Wednesday Thursday Friday Value offuture() 100,000 37,000 100,000 a) Evaluate what the initial margin is and how it protects investors against the possibility of default. Calculate its amount in sterling for this example. (10 marks) b) Calculate the variation margin and accumulated profit! loss for the buyer and the seller for each day of the week in the following table (10 marks) Monday Tuesday Wednesday Thursday Friday Value of future () 100,000 90,000 3?,000 100,000 120,000 Buyer's position Initial margin Variation margin Accumulated profitfloss Seller's position Initial margin Variation margin Accumulated profitfloss c) If both, the buyer and seller, decide to close their position on Friday how much will the buyer and seller be entitled to receive? (5 marks) 36, Appalachian Airlines began operating in 2008. The company lost money the first year but has been profitable ever since. The company's taxable income (EBT) for its first five years is listed below. Each year the company's corporate tax rate has been 40%%. Year Taxable Income 2008 $4,000,000 2009 $1,000,000 2010 $2,000,000 2011 $3,000,000 2012 $5,000.000 Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions and that the current provisions were applicable in 2008. How much did the company pay in taxes in 20117 A. $688,500 B. $765,000 C. $ 800.000 D.$ 930,000 E. $1,023,000 ") (4-2) Liquidity ration 37. The current and quick ratios both help us measure a firm's liquidity. The current ratio measures the relationship of the firm's current assets to its current liabilities, while the quick ratio measures the firm's ability to pay off short-term obligations without relying on the sale of inventories. A Truc B. False 4 1(4-6) PE ratio 38, The price/earnings (P E) ratio tells us how much investors are willing to pay for a dollar of current earnings. In general, investors regard companies with higher PVE ratios as being less risky andfor more likely to enjoy higher growth in the future. A Truc B. False )(4-9) Trend analysis 39, Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year. Trend analysis is one method of examining changes in a finn's performance over time. A. The B. False ) (4-10) Window dressing 40. Which of the following statements is CORRECT? A. Bonowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing" Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of "window dressing." B. Borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing"B. All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code. C. Small corporations that qualify under the Tax Code can elect not to pay corporate taxes, but then cach stockholder must report his or her pro rata shares of the firm's income as personal income and pay taxes on that income. D. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the corporation's income and stockholders were taxed again on this income when it was paid to them as dividends. E. All corporations other than non-profits are subject to corporate income taxes, which are 15% for the lowest amounts of income and 38%% for the highest income amounts. 1 )(3-2) Balance sheet 32. Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 530,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? A. $17.83 B. 518.72 C. $19.66 D. $20.64 E. $21.67 ) (3-3) Income statement 33. Brown Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1.750 of depreciation. It had $9,000 of bonds outstanding that carry a 7,0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before A $4.627 B. 54 870 C. $5.114 D. $5369 E. 55.638 (3-8) MVA 34 Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Hayes' Market Value Added (MVA) is $162 million, what is the company's stock price? A. $65.02 B. $69 49 C. $73.15 D. $77.00 E. $80.85 )(3-9) Corporate faces 35. Your corporation has the following cash flows: Operating income $250.000 Interest received $ 10,000 Interest paid $ 45,000 Dividends received $ 20,000 Dividends paid $ 50,000 If the applicable income tax rate is 40%% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? A $83,980 B. $ 88,400 C. $ 92,820 D.$ 97,461 E. $102,334 ( )(3-9) Carry-back, carry-forward