# Daily Archives: July 2, 2021

## ow many newspapers should the newsvendor stock each day?

A newsvendor can buy the The Unrecordfor \$1.00 and sell it for \$1.25. However, hemust buy the papers before he knows how many he can actually sell. If he buys more papersthan he can sell, he disposes of the excess at no additional cost. If he does not buy enoughpapers, he loses potentialsales. He knows that he can sell either 50, 100 or 150 papers becausehe has three potential customers who buy the newspapers from him in batches of 50 papers.He can buy papers himself only in multiples of 50. The probability of the newsvendor havingone customer in a day is 0.3, two customers in a day is 0.5 andthree customers in a day is 0.2How many newspapers should the newsvendor stock each day?Calculate EVPI using i) the….

## What percent spend between \$500 and \$600 per month on food.

1. The payouts for the Powerball lottery and their corresponding odds and probabilities of occurrence are shown below. The price of a ticket is \$1.00. Find the mean and standard deviation of the payout. Hint: Don’t forget to include the cost of the ticket and its corresponding probability.Divisions Payout Odds ProbabilityFive plus Powerball \$50,000,000 146,107,962 0.000000006844Match 5 200,000 3,563,609 0.000000280614Four plus Powerball 10,000 584,432 0.000001711060Match 4 100 14,255 0.000070145903Three Plus Powerball 100 11,927 0.000083836351Match 3 7 291 0.003424657534Two Plus Powerball 7 745 0.001340482574One Plus Powerball 4 127 0.007812500000Zero plus Powerball 3 69 0.0142857142862. An auditor for Health Maintenance Services of Georgia reports 40% of policyholders 55 years or older submit a claim during the year. Fifteen policyholders are randomly selected for company records.a. How many of the policyholders….

## What is the most Universal Entertainment would bid for the franchise?

1 The government of Catalina Island is currently inviting investors to bid for the exclusive right to provide cable television service to its residents The market demand for this service is P = 55 – 001Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers The associated marginal revenue curve is MR = 55 – 002Q Universal Entertainment is interested in bidding for the right to provide cable service on Catalina Island It has a constant average and marginal cost of \$15 for providing cable service to each household

a If Universal Entertainment were to be awarded the exclusive right to provide cable service on Catalina Island, how many households would it service? What price….

## Assume inflation is a constant 4% per year What effect does that have on the “real” eventual amount?

Poulation Growth and Sum of annuities

Consider the formula P = 6738 * (1026)^t If we let P represent the population of Mexico in year t where t is the number of years from 1980, confirm that this formula gives the same population values as those given in the table

The following table gives the estimated population years 1980 to 1986

Year Population in Millions

1980 6738

1981 6913

1982 7093

1983 7277

1984 7466

1985 7660

1986 7859

b What would the population in 1990 have been if growth had continued in this same pattern?

c How many years beyond 1980 will it take to double the population assuming the growth continues in the same pattern?

The effect of inflation

a….

## How does Danaher compare to Private Equity?

1. Pick a company, i.e., either a company you work(ed) at or one of Danaher’s competitors. What is the key lesson this company can learn from Danaher? Translate the lesson into a 5-step action plan for the company [25%]

2. Central to Danaher’s ability to grow are its historical development of capabilities in both acquisitive and organic growth. How did Danaher develop these capabilities and what, if any, further capabilities would have been beneficial in the past or for its future expansion? – [25%]

3. How does Danaher compare to Private Equity? [25%]

## How does Danaher compare to Private Equity?

1. Pick a company, i.e., either a company you work(ed) at or one of Danaher’s competitors. What is the key lesson this company can learn from Danaher? Translate the lesson into a 5-step action plan for the company [25%] 2. Central to Danaher’s ability to grow are its historical development of capabilities in both acquisitive and organic growth. How did Danaher develop these capabilities and what, if any, further capabilities would have been beneficial in the past or for its future expansion? – Please link the different elements of your answer to concepts elaborated in the course readings. [25%] 3. How does Danaher compare to Private Equity? How could Danaher learn from Private Equity? Please link you answer to the course readings? [25%] 4. What does the case….

## What are the threats being faced by Indian General Insurance Ltd. (IGIL)?

Size matters. Or does it? That was the dilemma facing Suhas Nair and his team. The issue under discussion was the restructuring of Indian General Insurance Ltd. (IGIL), the largest, state-owned, non-life firm in the country. Nair had a personal stake too. His tenure as chairman and Managing Director of IGIL was to end in two years. And he was keen on hanging up his boots on a high note. Nair opened the meeting: “Should we merge the four subsidiaries of IGIL into a single outfit that would give us the advantage of size?” “Or should we delink them into learner, autonomous, and agile unit?”

“Just to provide a perspective,” said Rajiv Parasnis, Director (Management Services), “consolidation is the global trend. Look at Japan. The top six insurers….

## How much annual income will be earned by the portfolio?

Innis consulting group Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client’s needs. For a new client, Innis has been authorized to invest up to \$1.2 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs \$50 and provides an annual rate of return of \$5 per dollar invested ; each unit of the money market fund costs \$100 and provides an annual rate of return of \$4 for each dollar invested . The client wants to minimize risk subject to the requirement that the annual income from the investment be at least \$60,000. According to Innis’s risk measurement system, each unit invested in the stock fund has….

## Prepare the balance sheet for Glass Company immediately following the purchase.

Glass Company is thinking about acquiring Plastic Company. Glass Company is considering two methods of accomplishing control and is wondering how the accounting treatment will differ under each method. Glass Company has estimated that the fair values of Plastic’s net assets are equal to their book values, except for the equipment which is understated by Br. 20,000. The following balance sheets have been prepared on the date of acquisition: Assets Glass Plastic Cash Br. 520,000 Br. 40,000 Accounts receivable 50,000 70,000 Inventory 50,000 100,000 Property, plant, and equipment (net) 250,000 250,000 Total assets Br. 870,000 Br. 460,000 Liabilities and Equity Current liabilities Br. 140,000 Br. 80,000 Bonds payable 250,000 100,000 Stockholders’ equity: Common stock, (Br. 100 par) 200,000 150,000 Retained earnings 280,000 130,000 Total liabilities and equity Br…..