BUS 105: Why Business?
Wake Forest University
Fall 2016
MID-TERM EXAMINATION STUDY QUESTIONS
1. Sachs argues that economics has become a cheerleader for egoistic materialism. What
does he mean by that?
Sachs means that human well-being has shifted from be
Template - Black-Scholes Option Value
Input Data
Stock Price now (P)
Exercise Price of Option (EX)
Number of periods to Exercise in years (t)
Compounded Risk-Free Interest Rate (rf)
Standard Deviation (annualized s)
50
50
5
3.66%
62.00%
Output Data
Presen
AirThread
Operating Mkts
Non-Operating Mkts
Markets in which ATC has a controlling interest
Markets to be acquired under existing purchase agreeme
Non-controlling investment interests
Total Markets
Airthread
Return on Net Operating Assets
Return on Equity
American Cable buying AirThread
Industry moving more toward bundling service offers.
American Cable- video, internet, landline, but not any wireless offerings.
802.16n standard for mobile WiMAX.
Airthread feeling the pressure more immediately because of
Company XYZ
ASC 805 Example
Date 12/31/XX
ACC 782, Spring 2015
Year 1
Revenue
COGS
GM
Sales & marketing
Gen & Admin
EBITDA
Depr & Amort
EBIT
38.0% Taxes
DFNI
Add/(Deduct):
Depr & Amort
15.0% NWC Adds
CAPX
DFCF
Year 2
Year 3
Year 4
Year 5
5.0%
43,050
21,52
Company XYZ
ASC 805 Example
Date 12/31/XX
ACC 782, Spring 2015
Year 1
Revenue
COGS
GM
Sales & marketing
Gen & Admin
EBITDA
Depr & Amort
EBIT
38.0% Taxes
DFNI
Add/(Deduct):
Depr & Amort
15.0% NWC Adds
CAPX
DFCF
Year 2
Year 3
Year 4
Year 5
5.0%
43,050
21,52
Company XYZ
ASC 805 Example
Date 12/31/XX
ACC 782, Spring 2015
Year 1
Revenue
COGS
GM
Sales & marketing
Gen & Admin
EBITDA
Depr & Amort
EBIT
38.0% Taxes
DFNI
Add/(Deduct):
Depr & Amort
15.0% NWC Adds
CAPX
DFCF
Year 2
Year 3
Year 4
Year 5
5.0%
43,050
21,52
Company XYZ
ASC 805 Example
Date 12/31/XX
ACC 782, Spring 2015
Year 1
Revenue
COGS
GM
Sales & marketing
Gen & Admin
EBITDA
Depr & Amort
EBIT
38.0% Taxes
DFNI
Add/(Deduct):
Depr & Amort
15.0% NWC Adds
CAPX
DFCF
Year 2
Year 3
Year 4
Year 5
5.0%
43,050
21,52
Actual
2012
Estimated hrs of studio service
Estimated studio OH cost
Actual hrs of studio service provided
Actual studio OH cost incurred
Hrs of studio service at capacity
1500
120000
2400
2013
Estimated
2012
2013
1600
1350
120000
120000
1200
120000
2400
A
Price
Variable:
DM
Other Variable
Tot Variable
CM/u
CM ratio
Lbs of DM/u
CM/lb
Max CM
B
C
180
270
240
24
102
126
54
0.3
3
18
108000
80
90
170
100
0.37
10
10
60000
32
148
180
60
0.25
4
15
90000
Exercise 12-8
Demand
A
C
B
Product B
DM Cost/Lb
CM/Lb
Max Pr
BUS281
MIDTERM LOT
PEOPLE:
Sachs: economics has abandoned its interest in moral framework
worries:
income inequality
poverty
corruption/illegality
the environment
solution: reinvigoration of a global economic moral code
Sir Robert Filmer: God gave the
Step by Step Problem Solving on Excel
1. Worksheet representation of the model:
The problem can be represented in a wide variety of ways. There is no rigid
form requirement. The only requirements are that you have cells for the
problem variables; a formul
Test Sheet (Use as Guide)
Calculation of Sums of Squares:
1. Total Sum of Squares: (SST)
SST = (Xij - X)2 with b * k 1 degrees of freedom
In the example the grand mean = X = 89.4. Thus
SST = (90 - 89.4)2 + (93 - 89.4)2 + (92 - 89.4)2 + (94 - 89.4)2 + (96
Sensitivity Analysis Notes
Objective Function Coefficients(OFC)
o
When the Objective function coefficient (OFC) a variable changes
this affects the slope of the contours only.
o
When OFC of the variable on the vertical axis increases the
contours become f
Lecture 3 Notes
ANDOMIZED BLOCK DESIGN :
This is a technique of ANOVA which is an extension of the equality of means
of two populations with matched (paired) samples to more than two
populations. In this technique the subjects which are similar in everyth
Hypothesis Testing Lecture Notes
Summary of Hypothesis Testing
1. Make an assumption about a population or populations (generally about some
quantitative aspect such as mean, proportion etc.)
2. Choose a level of significance (tolerable probability of rej
HW Assignment 10 Answers
4-50
a) No effect the short dovel constraint is not binding and has 360 slack
units;
b)nothing, again 360 extra short dovels can absorb this shortfall;
c) 1240 and up ( allowable increase is infinity allowable decrease 360,
the sl
HW 8 Answers
1. Let xij be the currency i exchanged into currency j (measured in
denomination of i), and yi be the final holding of currency i (measured in
currency's own denomination)
Max 1.0y1 + 1.6785y2 + .1840y3 + .6211y4 + .0085y5 st
y1
= 2.0 + 1.665
How to Solve Linear Problem Guide
Most spreadsheet programs have the capability to solve small linear
programming problems. Windows' version of Lotus 123 has a tool
called SOLVER that solves various mathematical programming problems. This
note describes t