StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Monetary Amount of Fair Shares - Essay Example

Cite this document
Summary
The author of the present paper "Monetary Amount of Fair Shares" argues in a well-organized manner that the amount of each fair share is different as each bidder has put a different amount on the collection according to his or her valuation of the item…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Monetary Amount of Fair Shares
Read Text Preview

Extract of sample "Monetary Amount of Fair Shares"

Q4, How much money is owed to each of the two people who do not win the collection of frogs? 

Soln.   We calculate the amount that Abraham will have to pay to society as the value that he put on the items is greater than his fair share.

         12000-4000= $8000 from this amount we will subtract the other two bidder’s fair share amount.

         8000-2000-3000= 3000 there is still a surplus of $3000 left which will be divided equally among the three bidders.

Now the total money owed to each of the two people who do not win: Fair Share+Surplus money

Bobby: 2000+1000=3000

Charlene: 3000+1000=4000

Q5, In your opinion how Fair is the process described above? 

Soln. This process can be said to be a fair one as it gives each bidder an equal chance of winning the items that they want to be based on their own valuations of it. Now, if someone tries to intentionally bid an amount that is far greater than the value of the collection to just beat the others then the winner also has to pay an amount which is the difference between the valuation he or she puts and the fair share of the item which compensates the other bidders and this way the other bidders also do not feel hard done by.

Q6, Now pretend for a moment that you like frogs; we will insert you into the situation under special circumstances. Despite (or perhaps because of) your love of all things amphibious, you currently lack the funds to pay each of the others their probable fair share. You will not receive the collection, but wish to receive as much money as possible. You have no knowledge of the amounts in each of the sealed bids, but strongly suspect that Abraham will bid between $10,000.00 and $12,000.00.

Given that you cannot afford to win the process, describe how you will go about deciding what to put down for your own estimate of the value of the collection.

Soln.  As I know that I cannot pay the others their probable fair share and so I won’t be able to win the collection and I also believe that Abraham will bid between $10000 to $12000 then I would think about putting a value that is just below the one that Abraham will put which in this case would be $9999.

The reason for putting this value is that it will give me the highest possible fair share without having a chance of winning the items as the fair share that I will get if Abraham bids $10000 and wins would be:

9999/4= $2499.75

Now supposing that Bobby and Charlene bid the same amounts as before their fair share would be :

Bobby: 6000/4= 1500     Charlene: 9000/4=2250

And Abraham’s fair share is 10000/4: 2500.

The amount that Abraham will pay to the society would be 10000-2500=7500

Out of 7500, the other bidder’s fair share would be deducted: 7500-2499.75-1500-2500= $1000.25

As $1000.25 is the surplus amount, it will be divided equally among the four bidders:

1000.25/4= $250.0625 will be received by each bidder.

And so the total amount that I will receive would be 2499.75+250.0625=$2749.8125. This is the highest amount that I can win considering that I cannot win the collection and Abraham’s bid will be between 10000 to 12000.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Fair Shares Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Fair Shares Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/mathematics/1600715-fair-shares
(Fair Shares Essay Example | Topics and Well Written Essays - 250 Words)
Fair Shares Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/mathematics/1600715-fair-shares.
“Fair Shares Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/mathematics/1600715-fair-shares.
  • Cited: 0 times

CHECK THESE SAMPLES OF Monetary Amount of Fair Shares

Fair Trade Movement between Developed and Developing Countries

With the contextualisation of the background of this research investigation, basically, the paradoxical function of fair – trade movement is observed.... From the paper "fair Trade Movement between Developed and Developing Countries" it is clear that the fair – trade movement has been one of the most constant and most unwavering criticisms of the World Bank and International Monetary Fund's (IMF) policies of deregulating barriers to trade....
13 Pages (3250 words) Research Paper

British Airways Financial Statement

The examination will focus executive pay packages in regards to shares of the company; certification of BA's audit committee and that of the Independent Auditor certification of the statement, how the corporation reports international revenue from its overseas operations, depreciation of property, plant, and equipment....
12 Pages (3000 words) Essay

Monetary Control Operations: the Bank of England

In the essay 'monetary Control Operations: the Bank of England' the author discusses the primary aim of the Central Bank, which is to bring financial stability along with economic development.... In this respect, the central bank is responsible for formulating and implementing monetary policies.... The central bank uses monetary policy for influencing the economy and money supply in the market.... By formulating and implementing monetary policies, central bank influences financial activities....
19 Pages (4750 words) Coursework

Multinational Acquisition: HP & Compaq

After having stock prices down to about $20 per share, and a substantially reduced amount of earning, surely HP needs a better and new direction.... 325 shares to Compaq at the share price of $23.... The author of the paper examines general criteria for the accounting of business combination under us GAAP, analysis of HP-Compaq merger accounting treatment....
7 Pages (1750 words) Research Paper

Intels Financial Statement

The stated amount represents principal and interest cash payments over the life of the debt obligations, including anticipating interest payments that are not recorded on the company's consolidated balance sheets.... The pioneers of Intel Corporation are Robert Noyce and Godon Moore....
8 Pages (2000 words)

Employee's Benefit

In particular, the employers are required to contribute a certain amount of worker's salaries which should be above $450 or more per month into the superannuation fund.... salary is the basic amount of money that an employee is supposed to get annually.... Incentive/bonus entails monetary or non-monetary models.... monetary bonuses/incentives entail a portion of the profits made from an exceptional job done....
8 Pages (2000 words) Assignment

Accounting Records of Stewie Ltd, Bryan Ltd and Peter Ltd

The paper "Accounting Records of Stewie Ltd, Bryan Ltd and Peter Ltd" is a perfect example of a finance and accounting case study.... The long-term goals prefer mostly companies with solid past performance and continued good performance in the future.... Such companies are called growth companies or Blue Chip Companies....
14 Pages (3500 words) Case Study

Global Master Funds Strategies for Managing Interest Rate Risk

uestion 1 Effects of Interest Rate Risk onThe interest rate risk of the Global Master Fund emerges from the impacts of variances in the predominant levels of businesses' interest rates on the fair value of the financial assets and future income or cash flows.... In a company where the center operations are an option that is other than financial related administrations, such monetary risk ought to be overseen.... In a company where the center operations are an option that is other than financial related administrations, such monetary risk ought to be overseen....
10 Pages (2500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us