After reading all the available information carefully(Chapters 19, 20, 21, 22 from the Textbook) , prepare a two page
After reading all the available information carefully(Chapters 19, 20, 21, 22 from the Textbook) , prepare a two page (double-spaced) essay and answer the following questions:
Assume that we have the following data:
C=100 0.50Y
Ip=100-20r
Mt=0.10Y
Ms=100-10r
M=80
a. Build the IS-LM function.
b. If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions.
c. The intersection of IS-LM functions defines four areas. Please analyze the behavior of the markets for goods and money for each area.
Cite references to material that you use in preparing the essay.
Your essay will be graded on the following:
Accurately described (graphically or verbally) the IS-LM functions.
Accurately describe (graphically or verbally) the shift of the IS-LM function when Investments increase by 100 units.
Describe each of the four areas defined by the IS-LM function.
Use at least one example in the essay.
Organization Grading Guidelines: Presentation is very effective and presented in a logical format with a clear beginning, middle, and end. There is a clear statement of ideas and smooth transitions. The writer has stated the main idea clearly and has provided relevant details. The main idea is clearly conveyed in a presentation that is highly relevant and interesting. The student provides evidence of thoughtful input. Details are rich and appropriate. Spelling, punctuation, and capitalization are virtually always correct.
3. Forecast cash flows per subscriber for the next 5 years. What is the value of a new subscriber
Finance Assignment Help 3. Forecast cash flows per subscriber for the next 5 years. What is the value of a new subscriber using a discount rate of 20%. Consider possible outcomes and the probabilities associated with them. Based on your analysis, should NetFlix be acquiring new subscribers?
4. In March 2000, NetFlix had 155,000 total subscribers. Based on this number and forecast future growth rate, aggregate per subscriber cash flows. Assuming that NetFlix does not change its business model, come up with projected annual cash flows and a total value of NetFlix.com. Will NetFlix generate enough near?term to have a successful IPO? How much cash does NetFlix need in order to remain viable?
5. What changes, if any, would you suggest to its business model? What are the value and cash flow implications of these changes?
Journal Entry – Accounting Ms Novelty Ice-cream was started by Raman Sharma who conducted the following transaction in the
Journal Entry – Accounting
Ms Novelty Ice-cream was started by Raman Sharma who conducted the following transaction in the next ten days. Help Raman in preparing a journal entry
Note: (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
• He invested an amount of Rs 100,000 cash in the business on 01/04/2019.
o Out of the total invested, he keeps Rs 25,000 cash and rest Rs75,000 is deposit in the Bank account 04/04/2019
• He purchased ice-cream making machine for Rs35,000 and paid cheque on 06/04/2019
• Raw material was purchased for Rs 3,000 on 09/04/2019
• He Sold ice-cream for Rs 5,200 on 10/04/2019
Question 1. The following accounts are involved in the transaction done on 09/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Purchase Account
B) Purchase and Raw Material Account
C) Cash and Sales Account
D) Cash and Business Account
Question 2. The following accounts are involved in the transaction done on 01/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Business Account
B) Cash and Capital Account
C) Capital and Business Account
D) None of the above
Question 3. The following accounts are involved in the transaction done on 10/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Ice-Cream account
B) Bank and Sales Account
C) Cash and Sales Account
D) Cash and Raman’s Account
Question 4. The following accounts are involved in the transaction done on 6/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Machinery Account
B) Cheque and Machinery Account
C) Cash and Cheque Account
D) Machinery and Bank Account
Question 5. The following accounts are involved in the transaction done on 04/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Bank and Capital Account
B) Cash and Capital Account
C) Cash and Bank Account
D) Bank and Business Account
Time Value of Money
You have been hired as a financial advisor to Mr Sam. He has received two offers for playing for IPL and wants to select the best offer, based on consideration of money only. What will be your advice? (Hint: Compare the Present Value of each offer by assuming a range of interest, say 8% – 14%)
Note: Please show the formula and calculation for the answer selected
Offer:
A) Offer A is a $10million offer for $2million a year for 5 years
B) Offer B is a $11million offer of $1million a year for four years and $7million in year 5th
Question 1. What is the difference between PV Value (Present Values) of offer A and B at 12%?
A) $0.1 million
B) $0.2 million
C) $0.7 million
D) $0.8 Million
Question 2. At 8% interest rate what would be the PV (Present Value) for Offer A
A) $8.1 Million
B) $8.4 Million
C) $8.3 Million
D) $7.9 Million
Question 3. At 10% interest rate what would be the PV (Present Value) for Offer B
A) $7.5 Million
B) $8.1 Million
C) $8.9 Million
D) $8.5 Million
Question 4. At 14% interest rate what would be the PV (Present Value) for Offer B
A) $6.5 Million
B) $8.2 Million
C) $8.3 Million
D) $8.5 Million
Question 5. What is the difference between PV values (Present Values) of offer A and Offer B at 10%?
A) $0.05 Million
B) $0.06 Million
C) $0.07 Million
D) $0.08 Million