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Using Hatfield's data and its industry averages, evaluate how well run Hatfield appears to be in comparison with other firms in its industry. In a paragraph or two, explain the company's primary strengths and weaknesses. Be specific in your answer and point to the various ratios given that support your position. Use the AFN equation to estimate Hatfield's required new external capital for 2020 if the sales growth rate is 11.1%. Assume that the firm's 2019 ratios will remain the same in 2020. (Hint: Hatfield was operating at full capacity in 2019.) Define the term capital intensity. In a paragraph or two, explain how a decline in capital intensity would affect the AFN, other things held constant. Would economies of scale combined with rapid growth affect capital intensity, other things held constant? Also, explain how changes in each of the following would affect AFN, holding other things constant: the growth rate, the amount of accounts payable, the profit margin, and the payout ratio. Using the forecasted items through 2023 in the spreadsheet, calculate for each of the next four years the net operating profit after taxes (NOPAT), net operating working capital, total operating capital, free cash flow (FCF), annual growth rate in FCF, and return on invested capital.

You are a manufacturing expert who understands basic economic concepts such as supply and demand, inflation and deflation, and the economic business cycle. You have been asked by your boss to discuss the advantages and disadvantages of expanding the company's manufacturing facilities during a time of economic recovery. Your task is to decide whether or not your company should expand its manufacturing operations and discuss the reasoning behind your decision.

Public sector microeconomics. Provide an example of a specific policy (law or something passed by the government) you believe makes an industry more like a perfectly competitive market. How does this work and what other impacts might be seen?

MNC corporation must forecast sales, expenses, and cash flows for its operations in different countries. The results from these transactions generated in the home country will depend on the exchange rate between the foreign and domestic currency. Often a company makes substantial investments in foreign operating facilities from which it expects to obtain cash flows. Thus, multinational corporations (MNCs) are vitally interested in forecasting exchange rates in both the short and long run. A frequently used method to forecast exchange rates for relatively short periods into the future is through the forward rate. To understand this, two types of exchange rates must be defined: 1. Spot exchange ratethe price of one currency against another for transactions being completed immediately 2. Forward exchange ratethe price of one currency against another for a transaction that will occur at some point in the future An extremely active exchange market exists, and financial officers can easily ascertain both spot and forward rates for the ten major currencies, which represent a predominant portion of all transactions. One view of the forward rate is that it represents the market's consensus on what the future spot rate should be. Thus, if today's spot rate is $1.998 for 1 British pound sterling and the 90-day forward rate is $1.989, then one can argue that the market consensus is that the pound will decrease in value by $0.009 relative to the U.S. dollar 90 days henc

s the forward rate a good predictor of the spot exchange rate for major currencies? On the average, the forward rate will be equal to the future spot rate; in other words, negative and positive errors in the forecasts will be offset. Therefore, it can be said that the forward rate is an unbiased forecaster of the spot rate. It makes for a bestguess forecast. However, this does not make it an accurate forecast at any one time. Still, for the short run, it is probably as good an estimator as we have. In addition to its lack of accuracy, other shortcomings must be considered: 1. The present exchange rate system does not permit currencies to float freely. Governments interfere in the exchange rate markets when they consider it to be of benefit to their country's economy. 2. Although forward rates can be established for relatively long periods into the future (in some cases, they can go out as far as 10 years), by far the largest volume of forward contracts is for 180 days or less. 3. Reliable forward markets exist only for currencies of the leading industrial economies of the world. Longer-term exchange rate forecasts often use econometric models. A major problem in constructing these multiple regression models is in finding appropriate reliable independent variables. In most cases, the independent variables are stated in terms of differentials between the domestic and foreign measures, such as: 1. Growth rates of GDP 2. Real interest rates 3. Nominal interest rates 4. Inflation rates 5. Balance of payments A significant number of complex models is in use today. Here we use a simple hypothetical model to illustrate the estimate of a relationship between the domestic currency and a foreign currency

Et = a + bIt + cRt + dGt

-where E = Exchange rate of a foreign currency in terms of the domestic currency-I = Domestic inflation rate minus foreign inflation rate-R = Domestic nominal interest rate minus foreign nominal interest rate-G = Domestic growth rate of GDP minus the growth rate of foreign GDP-t = Time period a, b, c, d Regression coefficients.

4. Some say that COVID has allowed educators to explore different and better ways to educate college students. These new online techniques can be thought of as a technological advance that reduces the cost of education.

a. Use a supply-and-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for online college education with this change.

b. The online classes and the traditional in-person classes are substitutes. Even though MSUM treat them as the same, they could treat them as two separate classes. Use a supply-and-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for in-person education remembering in-person does not have the technology advance and there is the issue of substitutability. Should who enjoy teaching in-person be happy or sad by the technological advance?

c. Computers and online classes are complements. Use a supply-and-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for computers. Should computer producers be happy or sad about the technological advances in online classes?

d. Based on this analysis what do you expect to happen to the profitability of companies like HP and Apple?

3. In class we explored the effects of the minimum wage on the economy. For the past several years many have pushed for a $15 per hour minimum wage, but in some parts of the US $15 per hour is common. F/M is getting close. For this problem, suppose the government increases the minimum wage to $20, which is above equilibrium wage in the market for unskilled labor.

a. Using a supply-and-demand diagram of the market for unskilled labor, show that market wage, the number of workers who are employed, and the number of workers who are unemployed. Also show the total wage payments to unskilled workers.

b. Now suppose the secretary of labor proposes another increase in the minimum wage all the way to $30 so that all workers receive a living wage. What effect would this increase have on employment? Does the change in employment depend on the elasticity of demand, the elasticity of supply, both elasticities, or neither.

c. If the demand for unskilled labor were inelastic, would the proposed increase in the minimum wage raise or lower total wage payments to unskilled workers? Would your answer change if the demand for unskilled labor was elastic?