1.  Look over the articles at the end of these instructions and choose one to use.   If they are all taken or none interests you, you can find your own by going to www.marketplace.org   and finding an article about a consumer product and something that has occurred to cause a change in the price or quantity.  

2.  Post a “reserve” under your Assignment Group so that no one will use the article you have chosen.  You cannot use an article someone has already reserved or written about.

 3.  Write a paragraph describing the situation, and provide the link.

4.  Draw a supply/demand graph of the product.  It must be hand drawn on graph paper and done very neatly with a straightedge (neatness will be part of the grade).  Take a picture of it and post.    You don’t need exact prices or quantities; you can use the letters P and Q.   Include axis labels and equilibrium points, and label all lines.

5.  Decide what change or changes will occur on the graph based on the events in the article and draw the change.

6.  Review the tutorial on Supply and Demand.   In the tutorial it discusses “determinants” –  categories of situations that can shift the demand or the supply curve.  

7.  Fill out the following sentence as a way to describe your graph:

My graph shows the market for ­­­­­­­­­­­­­­­_______________.  On the graph, the ___________ curve shifted to the _____________ causing the equilibrium price to _______________ and the equilibrium quantity to _____________.  The determinant that caused the shift is ______________.  The information in the article that supports this determinant is: _________________________________

• Ch. 5: Questions 3 & 4 (Question and Problems section): Microsoft® Excel® templates provided for Problems 3 and 4

• Ch. 6: Questions 2 & 20 (Questions and Problems section)

#2: Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?

#20:  Calculating Loan Payments [LO2, 4] You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

• Ch. 7: Questions 3 &11 (Questions and Problems section)

3:  Valuing Bonds [LO2] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 5.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond?

#11:  Valuing Bonds [LO2] Union Local School District has a bond outstanding with a coupon rate of 3.7 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 3.9 percent, and the bond has a par value of $5,000. What is the price of the bond?

• Ch. 8: Questions 1 & 6 (Questions and Problems section): Microsoft® Excel® template provided for Problem 6

#1: Stock Values [LO1] The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson–Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?

#6: Stock Valuation [LO1] Suppose you know that a company’s stock currently sells for $63 per share and the required return on the stock is 10.5 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?