ECO5POE S2 2014
Tutorial 4 Questions
Chapter 14: Perfect Competition
Question 7
The market for paper is perfectly competitive and there are 1,000 firms that
produce paper. The first table sets out the market demand schedule for paper.
Price
Quantity deman
ECO5POE S2 2014
Tutorial 10 Answers
Chapter 23: Exchange Rate and the Balance of Payments
Use the following data to work Problems 4 to 6.
In June 2010, the exchange rate was 75 yen per Australian dollar. By June 2011, the
exchange rate had changed to 86 y
ECO5POE S2 2014
Tutorial 3 Answers
Chapter 13: Producer Choices and Constraints
Use the following table to work Questions 3 to 6.
The table sets out Sues Surfboards total product schedule.
Labour
Output
(workers
(surfboards
per week)
per week)
1
30
2
70
3
ECO5POE S2 2014
Tutorial 2 Answers
Chapter 5: Efficiency and Equity
Use the following table to work Questions 3 to 5.
The table gives the demand schedules for train travel for the only buyers in the
market, Ann, Beth, and Cy.
Price
Quantity demanded
(doll
REVIEW QUESTIONS
1
2
3
4
5
6
7
8
What are pro-forma incremental earnings?
What is the difference between pro-forma incremental earnings and pro-forma free cash ow?
Why do we convert from incremental earnings to free cash ow when performing capital budgeti
ECO5POE S2 2014
Tutorial 11 Answers
Chapter 24: Aggregate Supply and Aggregate Demand
Use the figure below to work Problems 9 to 11.
Initially, the short-run aggregate supply curve is SAS0 and the aggregate demand
curve is AD0.
Question 9
Some events chan
ECO5POE S2 2014
Tutorial 9 Answers
Chapter 22: Money, The Price Level, and Inflation
Question 1
In Australia today, money includes which of the following items?
a. Reserve Bank bank notes in CBAs ATMs
Money includes currency outside the banks. Currency in
ECO5POE S2 2014
Tutorial 5 Answers
Chapter 10: Monopoly
Use the following table to work Questions 6 to 10.
Minnies Mineral Springs, a single-price monopoly, faces the market demand
schedule:
Price
Quantity
(dollars per bottle)
demanded
(bottles per hour)
KEY POINTS
AND EQUATIONS
TERMS
ONLINE PRACTICE
OPPORTUNITIES
12.4 Putting it all together: The capital asset pricing model
According to the CAPM, the risk premium of any
security is equal to the market risk premium multiplied
by the beta of the security.
KEY POINTS
AND EQUATIONS
TERMS
ONLINE PRACTICE
OPPORTUNITIES
4.5 Solving for variables other than present value or future value
The annuity and perpetuity formulas can be used
to solve for the annuity payments when either the
present value or the future
ECO5POE S2 2014
Tutorial 7 Answers
Chapter 20: Economic Growth
Question 1
Brazils real GDP was 1,360 trillion reais in 2009 and 1,434 trillion reais in 2010.
Brazils population was 191.5 million in 2009 and 193.3 million in 2010.
Calculate:
a. The economi
KEY POINTS
AND EQUATIONS
TERMS
Given a nominal interest rate and an ination rate,
the real interest rate is:
Nominal rate Ination rate
1 + Ination rate
= Real rate Ination rate
Real rate =
(5.5)
Nominal interest rates tend to be high when ination
is hig
Notice Board
Questions
2
Road Map
Where were we last week?
We looked at understanding and using the Statement of
Financial Position
Where are we going today?
We look at the last of the financial statement to be covered.
The Statement of Cash Flow; it
BUS5AFS: Accounting & Finance for SCV
Glenn Hill
Department of Accounting
latrobe.edu.au
CRICOS Provider 00115M
Notice Board
Questions
2
Topic Three
Understanding and Using the Statement of Financial Performance
Road Map
Where were we last week?
We loo
KEY POINTS
AND EQUATIONS
ONLINE PRACTICE
OPPORTUNITIES
TERMS
3.4 Valuing cash ows at different points in time
There are three rules of valuing cash ows:
a. only cash ows that occur at the same point in
time can be compared or combined.
b. to calculate a
KEY POINTS
AND EQUATIONS
TERMS
ONLINE PRACTICE
OPPORTUNITIES
clean price, p. 177
dirty price, p. 173
invoice price, p. 177
par, p. 166
premium, p. 165
MyFinanceLab
Study Plan 6.4
Interactive Interest
Rate Sensitivity
Analysis
corporate bonds,
p. 175
credi
KEY POINTS
AND EQUATIONS
TERMS
ONLINE PRACTICE
OPPORTUNITIES
7.5 Share repurchases and the total payout model
If the rm undertakes share repurchases, it is more
reliable to use the total payout model to value
the rm. In this model, the value of equity eq
BUS5AFSAccountingandFinance14
Topic11RiskandReturn
BUS5AFSACCOUNTINGANDFINANCE
SEMINARACTIVITIESTOPIC11SOLUTIONS
SectionAMultipleChoiceQuestions
Refertothefollowing
informationinanswering
Questions1and2.
B
A
Thesegraphsdepictthe
distributionofpossible
ret
KEY POINTS
AND EQUATIONS
ONLINE PRACTICE
OPPORTUNITIES
TERMS
11.4 Common versus independent risk
Common risk is risk that is perfectly linked across
investments.
Independent risks are unrelated across investments.
Diversication is the averaging of risk
ECO5POE S2 2014
Tutorial 8 Answers
Chapter 21: Finance, Saving, and Investment
Michael is an Internet service provider. On 31 December 2011, he bought an existing
business with servers and a building worth $400,000. During his first year of
operation, his
ECO5POE S2 2014
Tutorial 8 Questions
Chapter 21: Finance, Saving, and Investment
Michael is an Internet service provider. On 31 December 2011, he bought an existing
business with servers and a building worth $400,000. During his first year of
operation, h
ECO5POE S2 2014
Tutorial 7 Questions
Chapter 20: Economic Growth
Question 1
Brazils real GDP was 1,360 trillion reais in 2009 and 1,434 trillion reais in 2010.
Brazils population was 191.5 million in 2009 and 193.3 million in 2010.
Calculate:
a. The econo
ECO5POE S2 2014
Tutorial 1 Questions
Chapter 3: Demand and Supply
Question 10
As more people buy computers, the demand for Internet service increases
and the price of Internet service decreases. The fall in the price of Internet
service decreases the supp
ECO5POE S2 2014
Tutorial 9 Questions
Chapter 22: Money, The Price Level, and Inflation
Question 1
In Australia today, money includes which of the following items?
a. Reserve Bank bank notes in CBAs ATMs
b. Your Visa card
c. Coins inside a vending machine