...AVC = 1.24 + .0033Q + .0000029Q2 − .000046QZ − .026Z + .00018Z2 where AVC = average variable cost (i.e., working costs of generation), measured in pence per kilowatt-hour (kWh). (A pence was a British monetary unit equal, at that time, to 2 cents U.S.) Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts a. Determine the long-run variable cost function for electricity generation. AVC = 1.24 + .0033Q + .0000029Q2 − .000046QZ − .026Z + .00018Z2 TC = AVC*Q = 1.24Q + .0033Q2 + .0000029Q3 − .000046Q2Z − .026ZQ + .00018QZ2 b. Determine the long-run marginal cost function for electricity generation. Differentiate TC to get MC = 1.24 + .0066Q + .0000087Q2 − .000092QZ − .026Z + .00018Z2 c. Holding plant size constant at 150,000 kilowatts, determine the short-run average variable cost and marginal cost functions for electricity generation. Put Z= 150 to get AVC = 1.24 + .0033Q + .0000029Q2 − .000046QZ − .026Z + .00018Z2 =1.24 + .0033Q + .0000029Q2 − .000046Q*150 − .026*150 + .00018*150*150 =1.24 + .0033Q + .0000029Q2 – 0.069Q – 3.9 + .4.05 = 1.39 - 0.0657Q + .0000029Q2 TC= AvC*Q = 1.39Q - 0.0657Q2 + .0000029Q3 MC= 1.39 - 0.1314Q+ .0000087Q2 d. For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs. We need to minimise AVC = = 1.39 - 0.0657Q + .0000029Q2 So dAVC/ d Q= 0 - 0.0657 + .0000058Q = 0 Q= 11327.586 e. Determine the short-run average variable...
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...Checking the play area 02/12-08/05/12 McDonald’s Miami, FL Cashier • Being Friendly and efficient in offering a pleasant experience to customers • Having interpersonal communication skills • Organizational and analytical ability • Resolve customer complaints • Cash handling • Food Prep 10/23/11-01/21/12(seasonal) Best buy Miami, FL Customer Specialist • Customer Service • Proper phone etiquette • Cash handling • Resolve customer complaints • Greeted and directed visitors and provided general information • Stock 06/10/11-08/05/12 Regal Entertainment Group Miami, FL Floor Staff • Customer Service • Proper phone etiquette • Clean theater’s, restrooms, swept, mopped floors, and informed supervisors of all safety hazards •...
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...EXECUTIVE SUMMARY A few concepts that I chose from chapter 10 to focus on are executive succession: insiders versus outsiders, problems in retrenchment, managing diverse cultures following an acquisition, and total quality management (TQM). Strategy implementation is an important step that requires staffing and directing and puts strategy into action. According to McCarthy 'strategy implementation may be said to consist of securing resources, organizing these resources, and directing the use of these resources within and outside the organization.' The concept executive succession, is an integral part to a company. Whether to hire an outside or inside manager is better for replacement within a company depends on the circumstances of the company. If a company is doing well, then hiring someone from the inside would improve performance. If a company is on thin ice, hiring an outsider can save the company. Studies have shown that hiring someone from the inside results in better performance than hiring someone from the outside. I've learned that steps for top-management succession is exceptionally critical to a company and can stabilize its performance from sinking below average. A great CEO needs the experience, skills and expertise. Before my research and analysis, I believed that right CEO is one who's been working for the company for long time because of the amount of knowledge captivated during his/her years. However, that's not always the right choice because of circumstance...
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...cultures throughout the world. In more recent historical examples, during the great depression, the largest break through for the entertainment industry began to show by way of movies, musicals, radio and early television. Movies really began to dawn as a way to escape the realities of everyday life and live vicariously in a world of wonder and enchantment, or love and drama, for those who had more serious worries in the real world. With the progression of technology, movies have become a literal escape, with millions of followers across the globe. The movie industry has made such dramatic leaps in technology that the demand for movies and theaters has grown largely over the past 20 years. At Regal Cinemas, being one of the largest franchises across the globe, business has been remarkable. “Regal Entertainment Group (NYSE: RGC) operates the largest and most geographically diverse theatre circuit in the United States, consisting of 6,862 screens in 538 theatres in 38 states and the District of Columbia as of February 21, 2013, with over 211 million attendees for the fiscal year ended December 29, 2011 ("fiscal 2012")” ("Reg Movies", 2013). Our geographically diverse circuit includes theatres in 43 of the top 50 U.S. designated market areas. We operate multi-screen theatres and have an average of 12.6 screens per location, which is well above the North American motion picture exhibition industry average. We develop, acquire and operate multi-screen theatres...
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...Valuation analysis of Regal Entertainment [pic] Objective To value a company listed on major stock exchange. Summary We selected Regal Entertainment, the largest motion picture exhibitor in the US and based on our fundamental analysis including industry analysis, company analysis and financial analysis, the company is a ‘HOLD’ with a positive outlook. Approach & Methodology Industry Research: We identified the main competitor and key drivers and trends in the industry. Company Research: We gathered information of the company historical performance and market positioning vis. as vis. its peers. Company projections: We developed a full three statements financial model to forecast the company’s operation based on the industry analysis and company’s track record. Valuation: We have used APV approach to value the company as company’s capital structure keeps changing over time. Furthermore, we also calculated the implied valuation using trading and transaction multiples. Industry Overview Resilient industry The US movie exhibition industry is considered a relatively defensive industry with low revenue volatility. Main reason for this is that the American customers’ willingness to go to the movies is less correlated with the economic cycle. People go to the movies both in the good times and in the bad times. Thus, box office performance can vary widely quarter to quarter due to films released, but is generally steady in longer term (see figure 1). The box office...
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