...BUY Bajaj Auto with a target of 2200 in 1 year point of time. Bajaj Auto plans to launch six new versions of the Discover starting July in a bid to boost market share, and expects to maintain EBITDA margins at 20 percent going forward. Rajiv Bajaj, MD, Bajaj auto is optimistic of maintaining double-digit growth in exports. Exports constitute 33 percent of total revenues for the company. Bajaj auto will continue to gain market share at the retail level and out of the six Discover launches, only two will be placed in the high-end market. Bajaj management is expecting a 10-12 percent growth for 3-wheelers going forward and hope the auto sector's performance improves. Q4 EARNINGS: Total revenues were about Rs 5,000 crore. Profit after tax (PAT) was at Rs 766 crore, flat year-on-year. Even for the year as a whole, the earnings were pretty flat. The EBITDA margins were at 19.2 percent compared to 20.6 percent in Q4 of the previous year, down by almost 150 bps. FY’14 GUIDANCE: Bajaj expects April to be similar to last year and don't expect any change going forward till july. Bajaj expect EBITDA margins, around 20 percent. Bajaj have six new Discovers for launch starting in July. Bajaj are going to replace entire portfolio of three-wheelers with a completely new range. POSITIVES: * Commodities are also very stable. * Depreciating currency increased the margins by 8-9%. * The contribution of exports to total revenues has gone up. CHALLENGES: ...
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...Homework Practice Questions: Microeconomics/Macroeconomics The following questions are for homework practice only. They are to be answered in detail, so it can be used for practice and future reference. 1. Suppose you are hired to manage a small manufacturing facility that produces Widgets. (a.) You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? The increase in supply is likely the result of the increased demand, which created economic profit for firms because of higher prices. Depending on whether the increase in supply has expanded sufficiently to causes prices to fall and economic profits to disappear, your firm could profit by expanding output and increasing prices. This can be determined by seeing if prices are higher than they were before the increase in demand. The price per unit tells you the marginal revenue per unit sold. Output decisions should then be based on setting output so that marginal cost is equal to marginal revenue. In this case, the manager would increase the supply and price; but is should increase both in a controlled environment so that the total revenue profits does not drop (for example, raising price beyond a certain price might decrease the demand thus reducing overall profit) Also, the supply should be increased so that Marginal Cost< Marginal...
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...Aims of the Study * How does tourism affect the market in Philipsburg. * How does tourism affect market price in Philipsburg. * How does tourism contribute to the economy of Philipsburg. * The opportunity cost of tourism in Philipsburg. Method of investigation In order to obtain the necessary information needed for this study the researcher chose to use questionnaires, books and the internet. Although questionnaires can be insufficient to understand some forms of emotions and can only ask limited amount of questions. The researcher chose to use this method because you can get a large number of people’s opinions and views at once. The information obtained can also be analyzed more scientifically and objectively. Therefore 50 questionnaires consisting of 10 questions were created and handed out. Respondents were chosen at random. The researcher stood in front of the courthouse and made his way around the area and handed out the questionnaires to every second passerby and asked to return it at once. Most of the respondents were working people with a few visitors and some youths. Secondary sources were also used such text books, the internet, and statistical reports, and government financial reports. These secondary sources were used because data already exist in form- text, charts, tables, diagrams. They are less time consuming and more in-depth analysis could be done. Note: There is an example of the questionnaire in the appendices. ...
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...1. (TCO A) Suppose you are hired to manage a small manufacturing facility that produces Widgets. (a.) (15 points) You know from data collected on the Widget Market that market demand has recently increased and market supply has recently decreased. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? Remember that supply and demand are about the market supply and market demand, which is bigger than your own company. You are being given data on supply and demand for the whole market and are being asked what effect that has on you as a small part of that market. (b.) (15 points) Now, suppose that following the supply and demand changes in (a), a substitute good goes up in price, and your costs of production decrease. What new decisions will you make regarding production levels and pricing for your Widget facility? (Points : 30) (a.) ANS. With an increase in demand and an increase in supply, P* will be indeterminate. Q* will definitely increase. The decisions to be made follow the changes in Q* and P*. Production levels should be increased. The price of the Widgets should remain the same. (b.) ANS. Here the determinant of demand is an increase in the price of a substitute good. This will cause an increase in demand. The determinant of supply is an increase in costs. This will cause a decrease in supply. Now the change in Q* is indeterminate, and P* will definitely go up. ...
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...Mike Staubs July 1, 2014Econ 2200 Application Paper Scarcity & Opportunity Cost Economics is a very important field of study in modern society. It helps us to understand the choices we have to make to satisfy our unlimited wants and needs to have a better life. Microeconomics is the study of households, firms, and government in specific markets. One of the main problems economics tries to address is scarcity. Scarcity is the term economist use to describe a situation when the amount of something available is not sufficient to satisfy the desire or demand for it. Scarcity can be applied to all aspects of economics and is one of the most crucial points to understand. Because we are consumers in a free market, we live on income constraints or budgets. Limited income forces us to make choices about goods and services we will purchase, as well as goods and services we will forgo. As a society, we also experience scarcity. Societies face scarce economic resources. Economist classify these economic resources into four categories: land, labor, capital, and entrepreneurial ability. Land is considered to be not only physical land but also water, oil, wind, and all other natural resources. Labor would be described as not only the workforce, but the quality of the workers in the workforce. Capital is the facilities, tools, machinery, and any other components that go into manufacturing a good. Entrepreneurial ability is outlined by the people who exploit opportunities in markets. Entrepreneurs...
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...differ among the market structures of monopoly, oligopoly, monopolistic competition, and perfect competition. This simulation and the real-life scenarios detailed within, provide insight and understanding to the intricate decisions that are made in each type of market structure and the impact of those decisions. In the Quasar simulation, the C.E.O. utilized pricing as tool for optimizing profits, and with the input from the board of advisors decided to allocate funds to advertising, technology, and other ventures. (University of Phoenix, 2008) Through the course of this paper, a solution will be created using strategic variables, in order to sustain the economic profits that the firm can earn. This paper will also look to identify pricing and non-pricing strategies that will further facilitate the goal of maintaining economic profits. Finally, this paper will ascertain what kind of innovations will best prolong Quasar’s distinctiveness. In 2003, Quasar launched the world’s first all optical notebook computer branded Neutron. Because of Neutron’s processor, memory use and high-speed optical conductors, Neutron boasts approximately 5 times the speed of existing microchip-based computers. Neutron employs high energy saving technology with rechargeable batteries that last up to 3 days and due to the patented technology, Quasar and Neutron have a monopoly on this product line for the next 3 years. According to McConnell and Brue a pure monopoly exists when a single firm is the...
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...stability of politics is one of the elements which not only contributes to help Viet Nam persevere in the developing economy policy but also make our country step in the period of peace and prosperity. Being in the stable politics, oil and gas field has many favourable conditions in order to develop turnovers as well as innovate new technology or export oil and gas to international market. * The economic environment The task of renovating economy and politics has been deployed since 1986, which helped Viet Nam change from one of the poorest country in the world with GDP under 100 dollars to 2200 dollars at the end of 2015. The rate of the poor has declined sharply from 58% in 1993 to 5% in 2015. Moreover, the index of social security is improved significantly. The strategy of economic and social development over the period of 10 years, between 2011 and 2020 will focus on reforming structure, improving not only the environment, the human resources (especially human resources serving for the modern industry field), the democracy to stabilize macroeconomic but also the institution of economic market, investing the infrastructure so that Viet Nam can become a modern industrial country. The development of economy in Viet Nam is the good condition to oil and gas field in order that it can accomplish the goal of national industrialization and modernization with a...
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...variables that consumer wants, preferences and usage rates are often associated with. Demographic variables are popular for segmenting market because they are common and easily identified consumer characteristics. Further segmentation could be done through various behavior criteria such as purpose of travel, price and time, service orientation. Thus, the better an airline does the segmentation the better it will know and serve its customer needs. They also can manage their competitive by entering the market where only a limited number of competitors are active or where their most powerful rivals are not competing. Aviation industry has a clear basic market segmentation system which three segmentation parts named economic, business and first class. Economic class takes up the...
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...ECONOMICS Tutorial Questions Question 1: The demand curve for a product is: Q = 6 – 0.4P (a) Draw the demand and MR curves (b) What is the elasticity of demand at P = 10? Use this result to verify the formula: MR = P(1 + 1/e) (c) Marginal cost is given by: MC = 1 + 2Q What is the profit maximising output? Question 2 (a) The following is the demand curve for our product: Q = 4 – 0.4P Draw the demand and marginal revenue curves for this product. (b) What is the elasticity of demand at a price of 2.5? Verify that at this point MR = P(1 + 1/e) (c) Total cost (TC) is given by: Q | TC | 0 1 2 3 | 0 5 11 18 | What is the profit maximizing output? What is the profit at that output? Question 3 (a) The demand curve for our product is given...
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...croecon [pic] Introduction to Economics EF 110 Take home exercise Due date: Wednesday 27th April 6pm 2011 This assignment must be submitted via moodle EF110 homepage. This assignment accounts for 10% of the final module grade Answer all questions. Marks awarded for each question can be clearly seen. This is an individual test and while it is expected that you may consult notes, etc, the final work shown should be your work alone. Your signature below will be taken as fulfilling the usual declaration that what is shown on the following pages is your own work and not the work of others. |Student Name: |David Fogarty | |ID Number: |10369785 | |Programme: |European Business and French. | |Signature: | | PLEASE ANSWER ALL PARTS PART A 1) CALCULATE GROSS DOMESTIC PRODUCT (GDP) BY BOTH THE OUTPUT AND EXPENDITURE METHODS FROM THE FOLLOWING (AND SHOW ALL YOUR WORKINGS CLEARLY. (Treat manufacturing as equivalent to industry.) Note: Assume all information for the economy is given below; there is no stock of inventories. For calculating GDP using the Output (value...
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...Economics 247 Assignment 2 Version A This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 6 through 10. Answer each question clearly and concisely. 1. In perfect competition, one result of the model was that there were no economic profits in the long run. In a monopoly, the firm typically earns a positive economic profit. Why is there this difference? The lack of barriers to entry will allow competitors to enter the market unil economic profit is zero. These firms are price takers, and they cannot affect prices because their demand curve is horizontal. (4 marks) 2. Assume that a single firm in a pure competitive industry has a fixed cost of $6500 and variable costs as indicated in the table below. a. Calculate the TC, AFC, AVC, ATC, and MC columns for this firm. (5 marks) Total Output | TVC | TC | AFC | AVC | ATC | MC | 00 | 0 | | | | | | 600 | 70,000 | | | | | | 1000 | 76000 | | | | | | 1400 | 81000 | | | | | | 1800 | 87000 | | | | | | 2200 | 90000 | | | | | | 2600 | 93000 | | | | | | 2800 | 96000 | | | | | | 3000 | 100000 | | | | | | 3100 | 110000 | | | | | | b. Explain the concepts of economies and diseconomies of scale, and describe the underlying reasons why both occur. (4...
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...Microeconomics 1. Pat’s Pizza Kitchen is a price taker. It has the following hourly costs: |Output |Total Cost | |(Pizzas per hour) |(dollars per hour) | |0 |10 | |1 |21 | |2 |30 | |3 |41 | |4 |54 | |5 |69 | |6 |86 | a. If pizzas sell for $13, what is Pat’s profit-maximizing output per hour? b. How much economic profit does Pat make? c. What is Pat’s shutdown point? d. What range of prices will cause other firms with costs identical to Pat’s to leave the pizza industry? e. What is the long-run equilibrium price of pizzas? 2. You have been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm’s output is $30. Although you don’t know the firm’s fixed cost, you know that it is high enough that the firm’s total cost exceeds its total revenue. Should the firm continue to operate at a loss? 3. The market demand and supply schedules for cassettes...
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...Q. How is GDP measured and what are its limitations as a measure of the quality of life? A. Gross Domestic Product (GDP) can be defined as the annual value of output produced by factors of production within a nation’s border. In other words, it is the sum of all incomes earned by the country’s residents when producing goods and services with resources located inside that country. GDP is not to be confused with Gross National Product (GNP), which measures the flow of output produced with resources, which are owned by the nation wherever they might be located. The difference between GDP and GNP is net property income from abroad. The word “gross” in both of these measures of national income, indicates that no account has been taken of depreciation. There are 3 methods of calculating GDP: the product/output method, the income method and the expenditure method. In theory, because they all claim to measure the same aggregate, they should all give the same total. This is shown below in the circular flow of income: However, in practice, this is unlikely to be the case. This is because extremely large sums arising out of millions of transactions paid over different time periods are being dealt with and it would therefore be very unlikely if all 3 measures coincided. The first way of measuring GDP is to add up annually all the value of the goods and services produced in the country, industry by industry. This is known as the output or product...
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...RAMOS, ROCELLE GRACE A. BSIE 2-1 The History of Economic Thought and Development Economics E conomic writings date from earlier Mesopotamian, Greek, Roman, Indian subcontinent, Chinese, Persian, and Arab civilizations. Notable writers from antiquity through to the 14th century include Aristotle, Xenophon, Chanakya (also known as Kautilya), Qin Shi Huang, Thomas Aquinas, and Ibn Khaldun. The works of Aristotle had a profound influence on Aquinas, who in turn influenced the late scholastics of the 14th to 17th centuries. Joseph Schumpeter described the latter as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary, interest, and value theory within a natural-law perspective. Two groups, later called 'mercantilists' and 'physiocrats', more directly influenced the subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen. It held that a nation's wealth depended on its accumulation of gold and silver. Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and silver. The doctrine called for importing cheap raw materials to be used in manufacturing goods, which could be exported, and for state regulation...
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...FINANCIAL MANAGEMENT- 12MBA25 FINANCIAL MANAGEMENT 12MBA25 VTU SECOND SEMESTER FINANCIAL MANAGEMENT- 12MBA25 MODULE -1 FINANCIAL MANAGEMENT Financial management is an academic discipline which is concerned with decision-making. This decision is concerned with the size and composition of assets and the level and structure of financing. In order to make right decision, it is necessary to have a clear understanding of the objectives. Such an objective provides a framework for right kind of financial decision making. The objectives are concerned with designing a method of operating the Internal Investment and financing of a firm. There are two widely applied approaches, viz. (a) profit maximization and (b) wealth maximization. The term 'objective' is used in the sense of an object, a goal or decision criterion. The three decisions - Investment decision, financing decision and dividend policy decision are guided by the objective. Therefore, what is relevant - is not the overall objective but an operationally useful criterion: It should also be noted that the term objective provides a normative framework. Therefore, a firm should try to achieve and on policies which should be followed so that certain goals are to be achieved. It should be noted that the firms do not necessarily follow them. Profit Maximization as a Decision Criterion Profit maximization is considered as the goal of financial management. In this approach, actions that Increase profits should be undertaken and...
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