Anyone sitting BS2 Exams?

sinn7

Butters111 wrote: »

sorry goin back again to economics for the neoclassical and non neoclassical theory q, do you go into the neoclassical respones- managerial theory and principal agent theories etc. as well as all the non neoclassical theories?

I assume so? I guess you don't have to go into too much depth. I remember he took like two weeks to do the lectures for it. It does seem a bit much though >.<

DeadMoney

Butters111 wrote: »

sorry goin back again to economics for the neoclassical and non neoclassical theory q, do you go into the neoclassical respones- managerial theory and principal agent theories etc. as well as all the non neoclassical theories? it just seems like a lot of info for one essay!?

Yeah sort of stuck on this one too. Not sure which are neoclassical and which are not. But yeah I assume a brief description of each of the theories should be fine. I think the main difference is just their that neoclassical focuses purely on profit maximization where as the others focus on different things.

Butters111

sinn7 wrote: »

I assume so? I guess you don't have to go into too much depth. I remember he took like two weeks to do the lectures for it. It does seem a bit much though >.<

yeah I've tons of notes which I can never see myself writing in the exam! Do managerial theory, revenue maximisation, political governance systems , pricipal-agent theory and agency problems all come under neoclassical theories of the firm? Thanks for all the help

sinn7

DeadMoney wrote: »

Not sure which are neoclassical and which are not.

I have written down that managerial theory & principal-agent theory are neoclassical. Then under non-neoclassicial I have transaction cost theory, behavioural theory & stakeholder theory. Hope that helps!

Butters111

DeadMoney wrote: »

Yeah sort of stuck on this one too. Not sure which are neoclassical and which are not. But yeah I assume a brief description of each of the theories should be fine. I think the main difference is just their that neoclassical focuses purely on profit maximization where as the others focus on different things.

As far as i know Transaction Cost Theory, and Evolutionary are non-neoclassical as well as the Behavioural and Stakeholder theories (although these two have some exceptions according to his notes!) Confused about the rest!:rolleyes:

DeadMoney

sinn7 wrote: »

I have written down that managerial theory & principal-agent theory are neoclassical. Then under non-neoclassicial I have transaction cost theory, behavioural theory & stakeholder theory. Hope that helps!

ty

DeadMoney

Hey, does anyone know what to write for the Q "to advertise or not to advertise?". There is a lot of stuff in the book about advertising but not sure what to focus on.

sinn7

I'm pretty sure I bailed halfway through that lecture to finish org theory so I'm not sure if he gave any extra tips but the way my notes are structured is kinda like this:

- Background info: Few main points about advertising and product differentiation

- Neoclassical Approach: Mainly focusing on applying it to a monopoly and how it affects elasticity

- Advertising as Information: Summary of the different approaches different authors have taken

- Advertising as Persuasion: Few points on how this works and what it leads to

Overall I think I found that you should advertise but determining the amount of advertising is more difficult

DeadMoney

sinn7 wrote: »

I'm pretty sure I bailed halfway through that lecture to finish org theory so I'm not sure if he gave any extra tips but the way my notes are structured is kinda like this:

- Background info: Few main points about advertising and product differentiation

- Neoclassical Approach: Mainly focusing on applying it to a monopoly and how it affects elasticity

- Advertising as Information: Summary of the different approaches different authors have taken

- Advertising as Persuasion: Few points on how this works and what it leads to

Overall I think I found that you should advertise but determining the amount of advertising is more difficult

Thanks for that, it is a big help. That brings me up to 8 questions, think i'm just gonna try learn this 8 as best as I can and roll the dice on the day of the exam hoping at least 1/8 comes up.

sinn7

DeadMoney wrote: »

Thanks for that, it is a big help. That brings me up to 8 questions, think i'm just gonna try learn this 8 as best as I can and roll the dice on the day of the exam hoping at least 1/8 comes up.

What ones did you leave out? I didn't do the one about concentration

Butters111

I've only got 5 done so far, finding it really hard to come up with the second half of each question!! this might sound like a silly question but say, worst case scenario you came out with a negative mark in mcq's, would this eat into your essay mark!!?

sinn7

Butters111 wrote: »

I've only got 5 done so far, finding it really hard to come up with the second half of each question!! this might sound like a silly question but say, worst case scenario you came out with a negative mark in mcq's, would this eat into your essay mark!!?

Honestly, I have no idea! I imagine they'd be treated as two separate things. Like the lowest you could get would be 0 but I'm only guessing

DeadMoney

sinn7 wrote: »

Honestly, I have no idea! I imagine they'd be treated as two separate things. Like the lowest you could get would be 0 but I'm only guessing

Yeah i'd say this is about right. The lowest you could score in the MCQ's would be zero putting you at -50% meaning that you would have to get 80% in the essay to make up 40% to pass. Honestly I highly doubt anyone will score zero in the MCQ's unless they didnt do any revision over past papers. The lecturer set 4 papers which are last years summer & repeat and the year before. Apparently covering all of these 4 papers's MCQ's session will see you ok for the exam. I'm banking on the MCQ's to get me most of the marks.

Sinn, as for questions I left out, I left out 'how firms agglomerate etc', 'globalisation destroying indigenous firms', and 'national system of innovation'. Have so much else to cover in other subjects and don't want to spend all my time on economics and leave myself stuck for other things.

sinn7

DeadMoney wrote: »

Sinn, as for questions I left out, I left out 'how firms agglomerate etc', 'globalisation destroying indigenous firms', and 'national system of innovation'. Have so much else to cover in other subjects and don't want to spend all my time on economics and leave myself stuck for other things.

I have decent-ish notes for the agglomerate Q and the globalisation Q. I can email them to you if you'd like to even glance over them? I'd be way too nervous to leave out 3 whole questions, although my NSI notes are woeful.

Butters111

DeadMoney wrote: »

Yeah i'd say this is about right. The lowest you could score in the MCQ's would be zero putting you at -50% meaning that you would have to get 80% in the essay to make up 40% to pass. Honestly I highly doubt anyone will score zero in the MCQ's unless they didnt do any revision over past papers. The lecturer set 4 papers which are last years summer & repeat and the year before. Apparently covering all of these 4 papers's MCQ's session will see you ok for the exam. I'm banking on the MCQ's to get me most of the marks.

Yeah Its just I'm really bad at MCQ's! Would prefer just short questions! Thanks I'll have a look at the past papers!

Butters111

anyone know if for the Industry concentration Q we include the relationship between concentration and integration, barriers to entry and procurement markets?

DeadMoney

Butters111 wrote: »

anyone know if for the Industry concentration Q we include the relationship between concentration and integration, barriers to entry and procurement markets?

sorry i haven't a clue, on that question all I have is the methods used to measure concentration and some of the problems of these methods. Don't know what to write about "why" concentration measures are important. I should probably add that I did not go to one economics lecture through out the last semester so my pointers may be way off. I'm just basing stuff on the book.

Butters111

DeadMoney wrote: »

sorry i haven't a clue, on that question all I have is the methods used to measure concentration and some of the problems of these methods. Don't know what to write about "why" concentration measures are important. I should probably add that I did not go to one economics lecture through out the last semester so my pointers may be way off. I'm just basing stuff on the book.

I think one answer as to why is that its an easy way to identify whether an industry is a monopoly or leans more towards perfect competition etc,... at least that's something!:)

DeadMoney

Butters111 wrote: »

I think one answer as to why is that its an easy way to identify whether an industry is a monopoly or leans more towards perfect competition etc,... at least that's something!:)

thanks i'll use that. Reasons I have is that it is important from investors point of view to see which firm/industries are worth investing in. Might be worth something.

DeadMoney

hey do ye guys know if we are gonna have any CA results back before the exams?

Butters111

Thanks. Organisations lecturer said she'll try push them forward but that its not likely. IR guy i doubt will and market research I'd say we will cause on moodle there's a title- group project results- so hopefully!

Butters111

Anyone know much about the implications for industrial policy in Ireland?

DeadMoney

Butters111 wrote: »

Anyone know much about the implications for industrial policy in Ireland?

sorry don't know. But I did just read on the facebook page that apparently all that is required to pass is to define what is asked in the question (with or without comparisons). The lecturer said this in the revision class last week, so at least at worse case scenario if you know **** all about the topic, as long as you explain what the stuff means without going in to a lot of depth you should be good. This is great news for an under-achiever like myself.

Butters111

DeadMoney wrote: »

sorry don't know. But I did just read on the facebook page that apparently all that is required to pass is to define what is asked in the question (with or without comparisons). The lecturer said this in the revision class last week, so at least at worse case scenario if you know **** all about the topic, as long as you explain what the stuff means without going in to a lot of depth you should be good. This is great news for an under-achiever like myself.

Interesting! ha yeah i'm just hoping i don't fail!

DeadMoney

Hey in financial management, does anyone know what is required to do the following question? Its driving me nuts and I know its simple enough to do, just can't figure out what it is.

Question goes "pay us €100 for 10 years and then we pay you €100 a year forever. Is this a good deal if the interest rate available on other deposits is 6%?"

Think its something to do with present value and perpetuities.

sinn7

DeadMoney wrote: »

Hey in financial management, does anyone know what is required to do the following question? Its driving me nuts and I know its simple enough to do, just can't figure out what it is.

Question goes "pay us €100 for 10 years and then we pay you €100 a year forever. Is this a good deal if the interest rate available on other deposits is 6%?"

Think its something to do with present value and perpetuities.

I think you do it like this:
Present Value of Annuity = Cashflow*interest rate (from tables)
PV = 100*7.360
PV = 736 (this is how much the deal will cost you)

Present Value of Perpetuity = Cashflow/interest rate (from question)
PV = 100/0.06
PV = 1666.67 (this is what you'll recieve)

So since what you'll recieve is greater than what you'll pay, it is a good deal. Pretty sure that's how you do it...if I'm wrong please let me know!!

DeadMoney

sinn7 wrote: »

I think you do it like this:
Present Value of Annuity = Cashflow*interest rate (from tables)
PV = 100*7.360
PV = 736 (this is how much the deal will cost you)

Present Value of Perpetuity = Cashflow/interest rate (from question)
PV = 100/0.06
PV = 1666.67 (this is what you'll recieve)

So since what you'll recieve is greater than what you'll pay, it is a good deal. Pretty sure that's how you do it...if I'm wrong please let me know!!

Thanks your a life saver! I've also realized that I was doing these a way harder way by calculating instead of just using the tables. This is far easier

An Citeog

sinn7 wrote: »

I think you do it like this:
Present Value of Annuity = Cashflow*interest rate (from tables)
PV = 100*7.360
PV = 736 (this is how much the deal will cost you)

Present Value of Perpetuity = Cashflow/interest rate (from question)
PV = 100/0.06
PV = 1666.67 (this is what you'll recieve)

So since what you'll recieve is greater than what you'll pay, it is a good deal. Pretty sure that's how you do it...if I'm wrong please let me know!!

It's nearly right. I don't want to confuse you but it depends on whether the first payment is made in T=0 or T=1. How was it done in the lecture examples/tutorials?

Also, for the perpetuity, it doesn't start paying out until T=10 or T=11 (depending on when you start your payments in the first part), so you'll have to discount that back to T=0.

ie. Present Value of Perpetuity = 1666.67/1.06^10 (or ^11, depending)

DeadMoney

An Citeog wrote: »

It's nearly right. I don't want to confuse you but it depends on whether the first payment is made in T=0 or T=1. How was it done in the lecture examples/tutorials?

Also, for the perpetuity, it doesn't start paying out until T=10 or T=11 (depending on when you start your payments in the first part), so you'll have to discount that back to T=0.

ie. Present Value of Perpetuity = 1666.67/1.06^10 (or ^11, depending)

Hi the above question was part of a short question section and it was literally written as above, ie, no information about what year the first payment was made. I know in the longer versions of these type of question we are given cash flows that say year 0, year 1, year 2 etc but for the above this was not the case.

An Citeog

DeadMoney wrote: »

Hi the above question was part of a short question section and it was literally written as above, ie, no information about what year the first payment was made. I know in the longer versions of these type of question we are given cash flows that say year 0, year 1, year 2 etc but for the above this was not the case.

Then if that's all that's given and he hasn't given you a sample solution in any of the notes/tutorials, just state your assumption at the top of the question and work away.

I'd assume that the first payment is now (Y0) and that subsequent payments are made at the start of each year until the 10th payment has been made (ie. Y1-9)

The present value of your outflow = 100 + 100(6.8017) = €780.17

Assuming then that you'll start to receive the perpetuity from the beginning of Y10:

PV of perpetuity (inflow) = (100/0.6)/1.06^10 = €930.66

The PV of your inflow is greater than the PV of your outflow (positive NPV), so it is a good deal.