Tag: Economics

Prompt: Are Oligopolies more “dangerous” than monopolies? Thoroughly explain in the context of efficiency, and or regulation

use economic principles to enhance the overall analysis and or description of the topic. Do not embark on analysis focusing on social, political, or other disciplinary enquiries of the topic.

MLA format, double spaced, 12 font, Times new Roman, include bibliograph, 8 pages (including graphs)

Will be electronically checked for plagiarism.

reminder, the 8 pages isn’t only writing, it will also consist of graphs that will help your argument which will take up a couple pages. Use graphs that will help support your claimYou can get the graphs by: drawing it, put them in, cut and paste graphs only from the internet.Graphs are required.

needs a bibliography in MLA format. Sources can be from the Internet just do not forget to cite them. The grading rubric I have attached will help you know what to cite and will give you a clear direction of a step by step guide of what to write in the essay.

This assessment is about one of the basic functions of the finance manager, which is allocating capital to areas that will increase shareholder value and add the most value to the company. This means forecasting the projected cash flows of the projects and employing capital budgeting metrics to determine which project, given the forecast cash flows, gives the firm the best chance to maximize shareholder value. As a finance professional, you are expected to:

• Use capital budgeting tools to compute future project cash flows and compare them to upfront costs.
• Evaluate capital projects and make appropriate decision recommendations.
• Prepare reports and present the evaluation in a way that finance and non-finance stakeholders can understand.

Scenario

Senior leadership has now called upon you to analyze three capital project requests based on forecasted cash flow as they relate to maximizing shareholder value.

Your Role

You are one of Maria’s high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership. Senior leadership was impressed with your presentation in Assessment 1 and they are tasking you with the analysis of these three proposed capital projects based on forecasted cash flow. You have completed forecasting the projected cash flows of the projects as reflected in the attached spreadsheets, Projected Cash Flows [XLSX]. You now need to conduct your analysis recommending which will provide the most shareholder value to the organization.

Requirements

• Use capital budgeting tools to compute future project cash flows and compare them to upfront costs. Remember to only evaluate the incremental changes to cash flows.
• Employing capital budgeting metrics, determine which project, given the forecast cash flows, gives the organization the best chance to maximize shareholder value.
• Demonstrate knowledge of a variety of capital budgeting tools including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). The analysis of the capital projects will need to be correctly computed and the resulting decisions rational.
• Evaluate capital projects and make appropriate decision recommendations. Accurately compare the indicated projects with correct computations of capital budgeting tools and then make rational decisions based on the findings.
• Select the best capital project, based on data analysis and evaluation, that will add the most value for the company. Provide a rationale for your recommendations based on your financial analysis.
• Prepare reports and present the evaluation in a way that finance and non-finance stakeholders can understand.

Project A: Major Equipment Purchase

• A new major equipment purchase, which will cost $10 million; however, it is projected to reduce cost of sales by 5% per year for 8 years.
• The equipment is projected to be sold for salvage value estimated to be $500,000 at the end of year 8.
• Being a relatively safe investment, the required rate of return of the project is 8%.
• The equipment will be depreciated at a MACRS 7-year schedule.
• Annual sales for year 1 are projected at $20 million and should stay the same per year for 8 years.
• Before this project, cost of sales has been 60%.
• The marginal corporate tax rate is presumed to be 25%.

Project B: Expansion Into Three Additional States

• Expansion into three additional states has a forecast to increase sales/revenues and cost of sales by 10% per year for 5 years.
• Annual sales for the previous year were $20 million.
• Start-up costs are projected to be $7 million and an upfront needed investment in net working capital of $1 million. The working capital amount will be recouped at the end of year 5.
• The marginal corporate tax rate is presumed to be 25%.
• Being a risky investment, the required rate of return of the project is 12%.

Project C: Marketing/Advertising Campaign

• A major new marketing/advertising campaign, which will cost $2 million per year and last 6 years.
• It is forecast that the campaign will increase sales/revenues and costs of sales by 15% per year.
• Annual sales for the previous year were $20 million.
• The marginal corporate tax rate is presumed to be 25%.
• Being a moderate risk investment, the required rate of return of the project is 10%.

Please analyze and contrast the Introduction and Literature Review of the articles below. All Articles can be found in EBSCO.

Briggeman, J. (2013). Paul Krugman. Econ Journal Watch, 10(3), 400–410. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=94876820&site=ehost-live&authtype=uid&user=grantham&password=Research1951!

What’s Wrong with Economics: A Discussion Between Paul Krugman and Jeff Madrick. (2015). Challenge (05775132), 58(2), 112–134.

Cochrane, J. H. (2011). How Did Paul Krugman Get It so Wrong? Economic Affairs, 31(2), 36–40.

Critically evaluate the three articles provided, identify themes and gaps, then synthesize what you have learned, keeping in mind Krugman’s economic impact. 

I’m stuck on a Finance question and need an explanation.

1.As a healthcare facility manager, what do you think would be the greatest limiting factor in financial statement analysis? Would this be different if you were an investor? Why?  

2. Financial statements look at the financial part of the healthcare facility but leave out the high quality of service provided and customer satisfaction. Financial statements look at areas needing improvement but need to consider other factors that affect the overall performance. 

PART 1

REMEMBER TO WRITE 1 PARAGRAPH EACH FOR 5 OUT OF THESE 6 TERMS:

A-Standard Oil Company

B-The Panic of 1893

C-Volstead Act

D-The Great Migration

E-The Berlin Wall

F-Stagflation

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PART 2

WRITE 3 TO 4 PARAGRAPHS ANSWERING THE PROMPT

Rank the economic roles of the Agricultural, Banking, Manufacturing, and Transportation sectors in creating the modern American economy. Who played the biggest roles & who smallest?

Follow the instruction and make a do-file to run the stata. And then use the stata to answer the problem. I need to turn in the do-file and the answer. Make sure do-file is able to run.

my topic is “APPLE” folllowing the reqirement and sample given, only need to write about this company, this is a group work and i only need to do my parts

Based on the following case study, what would you recommend as the best policy: should this merger be allowed? However, you do not need to agree with this decision. I would like you to think through, based on what we have studied, should this merger have been permitted/ Concepts you may want to use include:

• The HHI index
• Economies of scale
• Monopoly profits

Your decision will include reference to the data for ice cream market shares. Note that data are available for the premium ice cream market (product with a high fat content) and the more inclusive all store-bought ice cream market. Also, note that common brand names for ice cream—Breyers, Ben&Jerry’s and Haagen-Daz—are manufactured by corporates with other names.

Choose from the following:

A) The merger should be permitted with no additional recommendations.
B) The merger should not be permitted at all.
C) The merger should be permitted with minor limitations (specify the limitations).
D) The merger should be permitted with major limitation (specify the limitations).

Nestle proposed to merge its U.S. ice cream business with Dreyers’ ice cream.

Current market shares are:

Premium (high fat) ice cream market
Unilever (makes Breyers and Ben&Jerry’s) 41%
Nestles (makes Haagen-Dazs) 37%
Dreyers 19%
Others 3%

Total store-bought ice cream market
Unilever 21%
Dreyers 18%
Blue Bell 6%
Nestle 4%
Wells 3%
Armour 3%
Other brands 45%

2. In the follow situation for a monopoly firm in the short run, what is the profit maximizing level of output. Please show your work and be as precise as possible.

Q P FC MC______________________________________

0 $number of letters in your first name

$5

1 $21

$7

2 $19.

$10

3 $16

$15

4 $12

3. You are advising a friend who sells paintings on the sidewalk. What price should she put on all the paintings given the following information:

Price $100 Quantity demanded 1

Price $80 Quantity demanded 2

Price $60 Quantity demanded 3

Price $40 Quantity demanded 4

And the fixed cost for her business is $50, while it costs her $40 to paint each additional painting, how many paintings should she sell if she sells each painting for the same price and what will that price be? Please show your work.

Discussion Topic # 2

Unemployment

A country’s economic performance is measured using three key indicators, one of which is the unemployment rate. When adults who are willing and able to work cannot find a job, it may be a sign that an economy is producing less than it could. On the other hand, unemployment is also a natural phenomenon that even healthy economies experience. While the official unemployment rate is helpful in representing the state of a nation’s workforce, it does have some shortcomings that should be considered, such as excluding discouraged workers.

There are three types of unemployment that economists describe: frictional, structural, and cyclical. During recessions and expansions, the amount of cyclical unemployment changes. Cyclical unemployment is closely related to the business cycle, and causes the deviations of the current rate of unemployment away from the natural rate of unemployment.

The labor force participation rate (LFPR)

The labor force participation rate (LFPR) is another measure of labor market activity in the economy. The LFPR is the percentage of the adult population that is in the labor force. The labor force includes everyone who is either employed or unemployed. The adult population is defined as anyone who is over the age of 16 who potentially could be part of the labor force. Anyone who is less than 16 years old, is in the military, or is institutionalized is not considered to be potentially part of the labor force and is excluded from this calculation.

When people enter the labor force the LFPR increases, and when people exit the labor force the LFPR decreases. A decrease in the LFPR that occurs at the same time as a decrease in the unemployment rate can signal that there are more discouraged workers.

Limitations of the unemployment rate

The unemployment rate as it is measured officially is often criticized for understating the level of joblessness because it excludes anyone working at all or people who aren’t looking for work. In particular, the official unemployment rate leaves out discouraged workers and the underemployed. People who have given up looking for work because they are convinced that they cannot find jobs are considered discouraged workers. Some people are counted as employed because they are working part-time, even though they really want full-time work.

Three types of unemployment

Economists primarily focus on three types of unemployment: cyclical, frictional, and structural. Cyclical unemployment is the unemployment associated with the ups and downs of the business cycle. During recessions, cyclical unemployment increases and drives up the unemployment rate. During expansions, cyclical unemployment decreases and drives down the unemployment rate.

The natural rate of unemployment

The natural rate of unemployment (NRU) is the unemployment rate that exists when the economy produces full-employment real output. NRU is equal to the sum of frictional and structural unemployment. When an economy is producing an efficient amount of output (meaning it is operating on its PPC), the unemployment rate will be equal to the natural rate of unemployment. Even though an economy may be operating efficiently, there will still be some unemployment. Because of that, the natural rate of unemployment is never equal to zero.

Changes in the natural rate of unemployment (NRU)

The natural rate of unemployment (NRU) can gradually change over time due to events such as changes in labor force characteristics. The NRU can change due to changes in structural and frictional unemployment. For example, a firm may want to hire fewer workers because the skills of those workers are not needed as much as they used to be. That will cause more structural unemployment, and the natural rate of unemployment will increase.    Discussion Topic # 2