The dividend yield on a stock and the interest rate used to discount the stock's cash flows are both continuously compounded. The dividend yield is less than the interest rate, but both are positive. The following table shows four methods to buy the stock and the total payment needed for each method. The payment amounts are as of the time of payment and have not been discounted to the present date. METHOD TOTAL PAYMENT Outright purchase A Fully leveraged purchase B Prepaid forward contract C Forward contract D Determine which of the following is the correct ranking, from smallest to largest, for the amount of payment needed to acquire the stock. (A) C < A < D < B (B) A < C < D < B (C) D < C < A < B (D) C < A < B < D (E) A < C < B < D

address every question

Wealth creating opportunities are external to the firm. Using what you learned in your prior courses, in the areas of product, supply chain management, human capital, or finance, what single opportunity does General Motors have that you believe will add the greatest wealth for General Motors shareholders in the future? Why?

Rewording the prior question, what single opportunity does General Motors have that you believe will add the greatest benefit for another (non-stockholder) stakeholder group in the future? Please name the stakeholder group and explain the opportunity and why?

2. Housing Prices at the Periphery of the Closed City

Recall that the zoning law says that each developed block must contain 15,000 square feet of floor space. Suppose that the annualized cost of the building materials needed to construct this much housing is $75,000. [Note: $75,000 = iK, where K is the capital needed to build 15,000 square feet of floor space. If i= 5%, then K = $75,000/.05 = $1,500,000.] The annual profit per square block for the housing developer is equal to 15000p-75000-r, where r is land rent per square block. In equilibrium profit for the developer is just equal to zero everywhere. In the absence of any other activities, land rent at x* (call it r*) is just equal to zero. What is the value of p at x*? Call this p*.

3. The Closed City's Corn Consumption Level

Using your results from above, suppose that income per household equals y=$25,000 per year. Next suppose that the commuting cost parameter t equals $10 per block. This means that a person living ten bocks from the CBD will spend 10*10=$100 per year getting to work. The consumers' utility functions are all U(c, q), where c is the quantity of bread (at $1 per loaf) consumed by the household and q is the quantity of housing per household, i.e. 1500 sq. ft. The consumers' budget constraints are all c+pq=y-tx. Under our special assumptions this reduces to c+1500p=25000-10x. Given that a household at x* faces a budget constraint, c+1500p*=25000-10x*, what is the value of c at x*? Call this c*. Explain why in equilibrium every household, regardless of location, must be consuming c*. Notice that since q is the same throughout the city, to have an equilibrium in which U is the same throughout the city, c must be the same throughout the city and everywhere equal to c*

4. The Closed City's Housing Price Function

Substituting the value of c* in place of c into the budget constraint c+1500p=25000-10x solve for p in terms of x. The solution tells what the price per square foot must be at a given location for the household to be able to afford exactly c* worth of bread. This is the city's housing price curve. How does p vary with location?

5. The Closed City's Land Rent Function

Substitute the function for p you just calculated in (4) into the zero-profit constraint for developers: 0=15000p-75000-r. Now solve for r in terms of x. What is the rent per square block at the CBD (x=0)? Plot the bid rent function for land in the city.

Scenario You own a bakery caf which has been successful ior the last 10 years. You have opened 3 branches in the Sydney metropolitan area. As your business gained a great reputation in the market, there were several approaches for franchise inquiries. However, you are concerned that the quality of products and services may be affected; therefore, you have decided not to consider the franchise option. Considering your business objective (to increase sales) and intense competition in the industry, you are looking for collaborative alliances with potential collaborators. As the current production capacity can meet up to 7 times greater than the current sales volume, you will need to find an appropriate collaborator to boost up your sales. The business has the following objectives for business expansion or sales increase:

The quality of the products must be managed and produced under the main branch supervision.

The products are in very high demand as the customers are satisfied with the quality.

The product know-how must be treated as intellectual property and is not an option to share.

The business considers collaborative alliances to expand its business. The partner business must meet the following selection criteria determined by the business:

- The partner business must have a good market reputation.

- The partner business has an annual turnover of at least $2 million.

- The partner business must be able to accelerate your business sales.

- The partner business must be able to support training for collaborative works.

- The partner business must have appropriate communication channels for collaborative alliances.

Question 1: (PC 1.1, PE 1, 2, KE 5)

a. Identify at least two opportunities for collaborative alliances (strategic alliance) and explain how the business can increase sales according to the organisational objectives.

b. Evaluate each opportunity identified in Question 1 for collaborative alliances.

Question 2: (KE 1)

List methods to identify and evaluate potential collaborators.

Question 3: (PC 1.2, PE 1, 2, 4, KE 5)

a. Based on your evaluation of opportunities for collaborative alliances in Question 1, which collaborator (out of your 2 suggestions) will you recommend? Provide your reasons.

b. Based on your recommendation in Part (a), evaluate the following companies according to the organisational policies and select the most appropriate collaborator with your reason.

Annual turnover A$ 10 million A$ 5 million

Training facilities Available Not Available

Communication channel Headquarters and branches Only headquarters

Question 4: (PC 1.3)

Developing relationships with the identified collaborators is important. Explain how you will initiate and develop a relationship with them.

Question 5: (PC 2.1) The partner business for the collaborative alliance has provided you with the following information:

The partner business requests to share the customer data.

The partner business requests to share the profits and a 50/50 partnership agreement.

The partner business wants to have training for baking products.

The partner business wants to learn how to operate a bakery and caf. Required: Analyse the partner's request for the collaborative alliance. Explain which requests can be accepted and which requests cannot be accepted. Provide your reasons.

Question 6: (PC 2.1, KE 3, 4)

You are required to negotiate with the partner about the requests provided in Question 5 and draw up an agreement.

a. Explain which options must be negotiated.

b. During the negotiation, list appropriate communication skills for effective negotiation.

c. Explain the steps in documenting the agreement for the collaborative alliance.

Question 7: (PC 2.2, PE 3, KE 7)

Once the agreement is finalised and is signed by both parties, explain why you should review the formal agreement once it is operating.

The Hurricane Sandy case focuses on understanding how markets work, supply and demand, market equilibrium and the role of prices as a coordination mechanism. To this end, the authors use the aftermath of the hurricane that hit New York and New Jersey in 2012, and in particular the gas shortages that caused long lines and frayed tempers. Hurricane Sandy interrupted gas supplies, resulting in many stations around the city shutting down when their supply ran out. New Yorkers became increasingly desperate to get hold of gas for a variety of reasons: to commute to work, to visit relatives in other areas of town or to power generators for those who had lost power. New York and New Jersey both have laws prohibiting price gouging, but as the shortage stretched on gas was being sold on Craigslist at many times its pre-hurricane price. Essentially, the government response to the gas shortage created a black market. Once the situation was resolved and prices had returned to normal, the two states began issuing fines to gas stations and hotels that had overcharged customers during the crisis, and Craigslist was subpoenaed for further information. Yet, from an economic point of view, the shortage was a clear- cut case of supply problems. With that in mind, perhaps the government, rather than everyday citizens, should have acted differently. Questions (50 points) 1. Is the gas shortage in the Hurricane Sandy case primarily limited to an issue of supply, or demand, or both? Use the supply or demand or both graphs to justify your answer. 2. Who is affected by the hurricane? Give few examples (not more than 4) and explain how each is affected. 3. What are some ways of dealing with the shortage problem? Did the policies achieve their intended goal? 4. Discuss why the measures used to deal with the shortage problem may exacerbate the crisis rather than solving it. In order words, what are the unintended consequences of remedying the gas shortage. 5. Comment how the market forces of supply and demand can be applied to analyze other similar issues like rice shortage in Malaysia, or rent controls in large cities like NYC or LA and the policy responses to solve them.

14. What is an externality?

15. Give an example of a positive externality and an

example of a negative externality.

16. What is the difference between private costs and

social costs?

17. In a market without environmental regulations,

will the supply curve for a firm account for private costs,

external costs, both, or neither? Explain.

18. What is command-and-control environmental

regulation?

19. What are the three problems that economists have

noted with regard to command-and-control regulation?

20. What is a pollution charge and what incentive does

it provide for a firm to take external costs into account?

21. What is a marketable permit and what incentive

does it provide for a firm to account for external costs?

22. What are better-defined property rights and what

incentive do they provide to account for external costs?

23. As the extent of environmental protection expands,

would you expect marginal costs of environmental

protection to rise or fall? Why or why not?

24. As the extent of environmental protection expands,

would you expect the marginal benefits of

environmental protection to rise or fall? Why or why

not?

25. What are the economic tradeoffs between lowincome

and high-income countries in international

conferences on global environmental damage?

26. What arguments do low-income countries make in

international discussions of global environmental cleanup?

27. In the tradeoff between economic output and

environmental protection, what do the combinations on

the protection possibility curve represent?

28. What does a point inside the production possibility

frontier represent?

12. What determines the level of prices in a market?

13. What does a downward-sloping demand curve

mean about how buyers in a market will react to a higher

price?

14. Will demand curves have the same exact shape in

all markets? If not, how will they differ?

15. Will supply curves have the same shape in all

markets? If not, how will they differ?

16. What is the relationship between quantity

demanded and quantity supplied at equilibrium? What is

the relationship when there is a shortage? What is the

relationship when there is a surplus?

17. How can you locate the equilibrium point on a

demand and supply graph?

A Solow Growth Model Augmented with Public Physical Capital (65 points)

Let us consider a production economy populated at the time t with t workers. The aggregate output/income ! is produced according to the following production function:

t= tt*t1- -.

where >0 denotes a productivity parameter , (0,1) stand for output elasticity parameters, ! represents the private physical capital and ! denotes the public physical capital. The aggregate population grows at a constant rate (1, +):

t+1 t= t

The law of motion for the private physical capital from time t to time t+1 can be written as:

t+1= t+ (1 )t

where ! denotes the aggregate private investment at time t and (0,1) stands for the depreciation rate. The law of motion for the public physical capital from time t to time t+1 is:

t+1= t+ (1 )t

where t denotes the aggregate tax revenue at time t:

t= t

where (0,1) stands for a time-invariant income tax rate.

The aggregate private saving at time t is a constant fraction (0,1) of the private disposable income dt:

t= dt

where td t t and represent their marginal propensity to save parameter.

The aggregate consumption at time t is a constant fraction 1 of the private disposable income dt

t= (1 )Ydt

In equilibrium, the aggregate private investment corresponds to the aggregate private saving:

t= t

Let t t/t denote the output per capita, t t/t stands for the private investment per capita, t t/t stands for the private physical capital per capita, t t/t represents for the public physical capital per capita and t t/t stands for the consumption per capita.

a. Using the aggregate production function, show that the output/income per capita at time t is a function of the private physical capital per capita at time t and the public physical capital per capita at time t. (5 points)

b. From your answer to a, show that the consumption per capita at time t and the equilibrium private investment per capita at time t are functions of the private physical capital per capita at time t and the public physical capital per capita at time t. (10 points)

c. Show that the change in the public physical capital per capita from time t to time t+1 is a function of the private physical capital per capita at time t and the public physical capital per capita at time t. (5 points)

d. In equilibrium, show that the change in the private physical capital per capita from time t to time t+1 is a function of the private physical capital per capita at time t and the public physical capital per capita at time t. (5 points)

e. Derive the steady-state formulas for the private physical capital per capita and for the public physical capital in per capita. (20 points)

f. Derive the steady-state formulas for the output per capita and the consumption per capita. (10 points)

g. Using your answer to f., derive the tax rate that maximizes the steady-state consumption per capita. (10 points)

Threats are also external to the firm. Using what you learned in your prior courses, in the areas of product, supply chain management, human capital, or finance, what single threat does General Motors face that you believe could impact the financials of the firm or possibly the survival of the firm. Why?

List and describe something that is unique to General Motors that you believe has value?

1. Why is it just as important for non-IS professionals? How are they involved in this process? What is their role in making IS investment decisions?

2. Why can it be difficult to develop an accurate cost-benefit analysis? What factors may be difficult to quantify? How can this be handled? Is this something that should just be avoided altogether? What are the consequences of that approach?

3. Contrast the cost of acquisition versus the total cost of ownership for the purchase of a new car. Demonstrate how the type of car, year, make, model, and so on change the values of various types of costs and benefits.

4. Identify and describe three different situations where fear, faith, or fact arguments would be most compelling when making an information systems investment decision.

5. Contrast the differing perspectives of different stakeholders involved in making information systems investment decisions.

6. Explain the differences between data and data flows. How might systems analysts obtain the information they need to generate the data flows of a system? How are these data flows and the accompanying processing logic used in the system design phase of the life cycle? What happens when the data and data flows are modeled incorrectly?

11) Establish and maintain a process for gathering, completing, and tracking travel requests and reimbursement forms within 3 days of receipt 90% of the time.

12) Develop and implement parent and family engagement plans for afterschool program to include 2-4 high quality family outings and 2-4 on-site events.

13) Lead a process to assess the current service learning program to determine goals, objectives, needs, opportunities, and target audiences.

14) Reach at least six new agencies or community groups and recruit at least two of them to participate in a series of classes.

15) Improve documentation of program impact.

16) Schedule and hold at least two check-in meetings with employees to talk about their work, progress and goals, and issues by November 2015.

17) Develop and lead at least three staff development sessions for the team during the calendar year under the coordination of the County Director.

18) Complete training on reading and reconciling eReports and travel by March 2015.