Summer 2010 Surrey
Question 1
A firm faces the following demand and cost functions:
P
= 23 0.6q
AVC
= 3 + 0.4q
AFC
= 40q1
(a) Calculate the output that minimizes Average Cost.
(b) Calculate the outpu
1730 Weightedaverage method, assigning costs (continuation of 1729).
Solution Exhibit 1730 summarizes total costs to account for, calculates cost per
equivalent unit of work done to date in the Ass
ASSIGNMENT #3: Business 312
Cutting and pasting the suggested solution is not sufficient effort to get a mark for this or any
other assignment question. Some of the questions from this assignment are
Bus 207: Assignment #05
Q1. The Students Union introduces the following scheme: Students can buy a Caffeine
Addict card for $50, which entitles them to a 25% discount on the price of coffee sold at th
Bus 207: Assignment #06
Textbook Ch. 7 Discussion Qs 2, 3, 9, 10, 12.
Q1.
A production process uses only one input, labor, and is described by the
following production function:
Q = 12L2  1/3 L3
(a)
Bus 207: Assignment #07
Textbook Ch. 8: Discussion Qs 5, 6.
Textbook Ch. 9: Discussion Qs 1, 2, 3, 4, 5.
Q1. Woozles can be manufactured in either of two types of factory with the following
cost funct
Chapter 3 Trading on Securities
Markets
Section 3.1 HOW FIRMS ISSUE SECURITIES
Securities market:


Primary market: newly issued securities
o Frim need to raise new capital either by borrowing or se
Chapter 1
Agency problem:



inadequate disclosure by:
o Investment dealers, conflict of interest
o Accounting audits, not enough information about the cash flows
o Managers their own investment or
Problem 1:
a) Lets assume the double price for housing is market efficient. The society as a whole will likely be
richer. People who own houses have a dramatic increase in their investment. The houses
Question 2
2.
a) Bond equivalent yield is equal to (Par value Purchase Price) / Purchase Price) x
(365/number of days)
Therefore, the bond equivalent yield is equal to (10,0009600) / 9600) x (365/182
Primary vs Secondary Sale:

Primary: New issue
Secondary: existing owner sell to another party.
Underwritten (Bought deal) vs Best effort (no firm commitment)
Negotiated vs. Competitive Bid

Negotia
The pension system:

Public Pension: (Old Age Security, Guaranteed income Supplement, Canada and Quebec Pension
Plans)
Registered pension Plans
Other private pension
Personal saving
Employment income
3.
a) If there is an increase in the demand for capital (investments), the demand for the fund will increase.
As a result, the real interest rate will increase
b) The increase in supply of the fund wi
Covered call: hold a long position in an asset combined with a short position in a call option on the same
underlying asset. (Income strategy, hedging strategy, you sell a cooption, at the same time
5. The standard deviation of each stock can be derived from the following equation
for R2:
2 2
2
Ri
=
i M
2
Explained variance
Total variance
=
i
Therefore,
2
2
A =
2
AM
2
RA
=
.72 .202
.20
= .0980
A
Residency of an individual
a) regular residents
liable under Part 1 on worldwide income for the whole year
b) part year residents
liable under Part 1 on worldwide income for that part
due to emigratio
Lesson 2
Complex Situations Relating to Shortterm
Decisions
Theory of Constraints
Use of Solver to Manage Limited Resources
Paul Jeyakumar
1
Limited Resources
If there are no constraints, we produce
Resource Constraints
Question 1.
A company manufactures 3 types of desktop computers. The income
statement for the 3 products and the whole company is shown below:
Sales
Variable costs
Fixed costs
Ope
Solution 11 4 (Basic)
Net income before income taxes.
Add: Loss on the sale of investment [ssec. 9(3)].
$ 10,000
Amortization [par. 18(1)(b)].
104,900
Interest on income tax payments [par. 18(1)(t)].
Solution 1 (Basic)
Andrew will be taxable on taxable income earned in Canada in 2013 because he will be deemed
to have been employed in Canada under subsection 115(2). Taxable income earned in Canada
Question 5
a) If I was the manager of the Intermediate Division, I would sell 30,000 units of product C,
plus 10,000 units of product A and B in order to optimize the profit. Product C should be
maxim
Solution 7 (Advanced)
Analysis of Division B Income
ABI
Source
Cdn. business.
Dividend.
Rental.
Interest.
Royalty.
Net taxable
capital gains.
Foreign.
Division B
income.
Cdn.
159,000
Forn.
PSB
Investm
Mutual fund: Structured and maintained the investment objective

professional managed fund made up a pool of funds collected from individuals and invest in
securities such as stocks, bonds, money mar
Risk Aversion: risky assets are expected to have higher return

Greater Risk > Greater penalty or greater the required return
Fair gain theory: one person gains is equal to another lose
Utility funct
Steven Wang
301218447
BUS 315
Problem 3
2.
a) The max possible loss is infinity, the if new share price is > 70, loss amount will be (New share price
70) x 100. The is no constraint on how much share
Lecture 1
Ch. 2
Financial Markets and Instruments
Major Classes of Financial Assets or Securities
Focus lecture understand characteristics of various types
of securities
Basic understanding of charact
BUS 315 D200 Derivatives Securities
Midterm Exam
Name:_
Student ID: _
Important:
This is a closedbook exam. The exam is out of 54 marks. There are 5 questions. Answer all of them.
Only the scientific
Exam type will based on assignment¬es
Financial calculator is not allowed
If u miss midterm, final exam will be graded 85%
Formula sheet will be provided during the exam
Lecture 1
Ch. 1
The Investm
Formula sheet
Note: 1) The following formulas will be provided with the exam. You cannot bring this sheet with you
to the exam; they will be provided along with the exam question booklets. At the end