Mgt411 GDB No. 1 Solution

As the world is getting in-depth knowledge of economics, some economic concepts are becoming more acceptable day by day. The concept of inflation is one of such concept which became popular during the last century. Two mostly used inflation measurement methods around the world are CPI (Consumer Price Index) and GDP (Gross Domestic Product) deflator. Now, one method is getting popularity in the world with the passage of time over the other method of measuring inflation.

You are required to comment on the major distinction between CPI index and GDP deflator and which method of inflation measurement has advantage over others and on what specific grounds?"

Solution:
In economics the GDP deflator (Implicit price deflator of GDB) is a measure of the level of prices of all new, domestically produced, final goods and services in an economy, GDP stands for gross domestic product, the total value of all final goods and services produced within that economy during a specified period.

Inflation has been defined as a process of continuously rising prices or equivalently of a continuously falling value of money, Various indexes have been devised to measure different aspects of inflation. The CPI measures inflation as experienced by consumers in their day-to-day living expenses, the producer price index (PPI) measures inflation at earlier stages of the production process: the Employment Cost index (PPI) measures inflation at earlier stages of the production process: the Employment cost index (ECI) measures it in the labor market: the BLS International Price Program measures it for imports and exports: and the Gross Domestic Product Deflator (GDP Deflator) measures inflation experienced by both consumers themselves as well as governments and other institutions providing goods and services to consumers. Finally, there are specialized measures, such as measures of interest rates.

The “best” measure of inflation for a given application depends on the intended use of the data. The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase at today’s prices, a market basket of goods and services equivalents to one that they could purchase in an earlier period.

Fin622 Quiz No. 1 announced

Quiz No.1 Dated: Oct 29, 10

On-Line Quiz (No.01) Announcement
Quiz will cover video lecture no. 01 to 12

Schedule

Opening Date and Time

November 01, 2010 At 12:01 AM (Mid-Night)

Closing Date and Time

November 03, 2010 At 11:59 PM (Mid-Night)

The Quiz will remain open for “72 Hours”

Mkt621 GDB No. 1 Solution

Advertising has damaged children to a large extent”. Justify this statement with solid reasons.

Advertisement has impact on children at both, positive and negative sides. But the negative impacts are followings. - Advertisement encourage children to persuade their parents to buy product shown in the commercial, whether it is useful or not. The little ones tend to get adamant, if they are not bought product. - Many advertisement in the present time include dangerous stunts which can perform only by experts. even though commercials broadcast warnings with the ad, but kids try to perform such kind of stunts at home, that may hurt them, - Junk foods such as pizza, burgers and soft drinks are heavily promoted during children TV viewing time.This develops a craving for fatty, sugary and fast food in kids.Thereby affecting their health adversely. Research has shown that junk food ads at TV, magazine, billboards influence children greatly leading an increased demand for junk food by children. when children watch young adults with good shape eating junk food in advertisement, they assume that is good for health. they do not know junk food is not good for health. Similarly candy advertisement, it heavily influenced to children, this result choose candy or snakes over fruits. They preferred candy rather than healthy food like fruits but in spite of that the power of advertisement cannot be ignored.

CS201 Assignment No. 1 Announced

Assignment No. 1
Semester: Fall 2010

CS201: Introduction to Programming
Total Marks: 20

Due Date: 05th November, 2010

Problem Statement: Calculating No. of A Grades in Class

You are required to write a program which should take input from user in the form of characters A or B. Based upon user’s input you should calculate no. of A grades. You should use while loop or do/while loop for taking input and if / else condition for making decisions.

Detailed Description:
The program should display like;

Please Enter Grade (‘A’ OR ‘B’ )
Then the program should take 10 inputs one by one,

• After taking 10 inputs, you should display no. of A grades.
• If A grades are less than or equal to 2, you should display a message “Your class is Poor!”.
• If A grades are less than or equal to 7, you should display a message “Your class is Good!”.
• If A grades are greater than or equal to 8, you should display a message “Your class is Brilliant!”.
• The user should enter either A or B. If user has entered other than A or B, e.g. C,D,E etc. Your program should display a message like;

"Please Enter 'A' or 'B' grade only!"

Sample Input and Output
Please Enter Grade of student 1 :
A Please Enter Grade of student 2 :

A Please Enter Grade of student 3 :

B Please Enter Grade of student 4 :

A Please Enter Grade of student 5 :

B Please Enter Grade of student 6 :

B Please Enter Grade of student 7 :

A Please Enter Grade of student 8 :

B Please Enter Grade of student 9 :
C

Please Enter ‘A’ or ‘B’ grade only! Please Enter Grade of student 9 :

A
Please Enter Grade of student 10 :

A

Total No. of A Grades = 6

Your Class is Good!

Fin630 Assignment No. 1 Solution

“Investment Analysis & Portfolio Management” (Fin 630)

Dividend Discount Model
Company A is currently selling for Rs. 90 and paying dividend of Rs. 10 per share. Dividend is expected to grow at rate of 5 percent per year. The required rate of return for investors is 17% to invest in the stock with the degree of riskiness.
Company B is currently selling for Rs. 85 and paying dividend of Rs. 10 per share. For the next year dividend is Rs. 10.6 per share, which shows growth rate of 6 percent per year. The required rate of return for investors is 17% to invest in the stock with the degree of riskiness.

A) Calculate the price of stock for Company A and Company B using Dividend Discount
Model.
Solution A:
Po for A = D(1+g)/r-g
Po = 10(1+0.05)/0.17 – 0.05
Po = 10(1.05)/0.12
Po = 10.5/0.12
Po = 87.5

Po for B = D(1+g)/r-g
Po = 10(1+0.06)/0.17 – 0.06
Po = 10(1.06)/0.11
Po = 10.6/0.11
Po = 96.36
B) If you have to choose one of these two stocks, which stock you will buy?
Solution B:

In part B I will buy the stock of company "B" because its current market price is low than fair price which we have calculated by using dividend discount model. Stock of company "B" also has greater growth rate than stock of Company "A"

C) If both companies have decided not to pay cash dividend but they are offering 10%
stock dividend. If you are holding 500 shares of Company A and 1,000 shares of
Company B, calculate total number of shares of each Company you will hold after
receiving stock dividend.

Solution C:

Company offers 10% stock dividend to all shareholders. Means that if you own 100 shares than company will give you 10 more shares free of cost. Number of shares increases but Total Value of Firm is unchanged.

Company A = 500 Share x 10%
Company A = 500 Share x 0.10
Company A = 50
Total Number of Shares = 500+50
Total Number of Share = 550 shares

Company B = 1000 Share x 10%
Company B = 1000 Share x 0.10
Company B = 100
Total Number of Shares = 1000+100
Total Number of Shares = 1100 shares