Draw the expansion path of a firm with the help of ISO QUANT analysis.
1. Mention and explain the four-market structure by giving examples for each of them from our surrounding
Calculate the weighted average outstanding shares. The answer is 249.
1/1 Outstanding = 100 shares
4/1 Issued = 20 shares
6/1 Declared dividend = 10%
10/1 Acquired = 10 shares
11/1 declared = 2:1 stock split
Jane has a utility function of the form: U=x y. The price for x is 2 , the price for y is 1 and her income is 40.
i). Derive the marginal utilities of the above function.
ii) Give an expression of the marginal rate of substitution between x and y
iii) use the Lagrange method to find the optimal choice of Jane.
iv) Find the value of & and give the economic interpretation of the Lagrange multiplier.
b) Explain what is monotonic function and give examples of such. show that an even power may change the sign of the monotonic function.
1.price of the equipment was $275,000;qualified for an “education discount” of $25,000. paid $50,000 cash for the equipment and issued a three-month, 9 per cent note payable for the remaining balance. The note, plus accrued interest charges of $4,500, was paid promptly at the maturity date.
2.Wilmet paid sales taxes of $15,000 at the date of purchase.
3. Freight charges for delivery of the equipment totalled $1,000.+
4. Installation costs related to the equipment amounted to $5,000.
5.During installation, one of the computer terminals was accidentally damaged.It cost the college $500 to repair this damage.
6.As soon as the computers were installed, the college paid $4,000 to print admissions.
a.For each of the six numbered paragraphs, indicate which items should be included by Wilmet College in the total cost debited to its Computing Equipment account. Also briefly indicate the proper accounting treatment of those items that are not included in the cost of the equipment.
The municipality of Smallville has arranged to borrow P30 million in order to implement several public
projects (flood control, school security, etc.). The interest rate will be 3% per year, payable at the end of
each year. This P30 million debt will be retired by making principal payments of P5 million at the end of
each year. The Board of Supervisors is concerned that it will take too long to pay off this debt. How many
years will it take to retire this P30 million debt and its associated interest payments?
You are reviewing a financial model prepared by someone who hasn't taken MKM704. The proposal being analyzed requires an upfront
investment of $8.0 million and the company has a hurdle rate of 12%. The output from the individual's model shows a NPV of $1.2 million and
an IRR of 10.5%. What do you conclude about the analysis and why?
For Mr. Crowder, the Ferrari is a specialty good. What kind of product would it be for you? Why?
For Mr. Crowder, the Ferrari is a specialty good. What kind of product would it be for you? Why?
7. Consider the following Demand-Supply Equations
Qd =30-2P
Qs =6+2P
i) What is equilibrium?
ii) Find the equilibrium price and quantity. Also draw the graph.