Homework Problem Set 4 1. Because Q=12-2P inverse demand P = -0.5 Q+6 For “half price” case‚ P = 2.5‚ Q=7 consumer surplus = 7*(6-2.5)/2 = 12.25 For “buy one‚ get one free” case‚ when original P = 5‚ Q = 4 instead of 2‚ total benefit TB = (4+6)*4/2 = 20 On the other hand‚ payment is 2*5=10 dollars‚ so consumer surplus will be = 10 Thus “half price” gives more surplus. 2. cost minimizing manner‚ marginal product of typewriter/marginal product of word processor=rent of typewriter/rent
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Valuation : * Price earnings ratio : DESCRIPTION | Mar-12 | Mar-11 | Mar-10 | Mar-09 | Mar-08 | Price-earnings ratio | 23.04 | 24.23 | 12.71 | 7.25 | 12.17 | This ratio reflects the following factors : growth prospects‚ risk characteristics ‚shareholder orientation ‚corporate image and the degree of liquidity.It indicates company performance and forecast future performance.Ratio is decreasing and it is good sign because investors will get high earnings.But risk will
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Risk Management Problem‚ Set I T Blount FIN/415 Brenda Papillon May 6‚ 2013 6-1. (Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are currently paying 9.1 percent. Calculate the investment’s expected return and its standard deviation. Should Carter invest in the security? Probability Return .15 6% .30 9% .40 10% .15 15% Expected Rate of Return: (.15 x .06) + (.30 x .09) + (.40 x .1) + (.15 x
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Problem Set 3 - FINA 4200 Spring 2013 Due Wednesday February 26th before class I. Multiple Choices Chapter 2 1. According to the Capital Asset Pricing Model‚ investors are primarily concerned with portfolio risk‚ not the isolated risks of individual stocks. Thus‚ the relevant risk is an individual stock’s contribution to the overall riskiness of the portfolio. a. True b. False 2. Diversifiable risk‚ which is measured by beta‚ can be lowered by adding more stocks to a portfolio.
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Problem Set 3 ECON 973 Fall 2012 Fluctuations: Discrete Time Models Ben Brewer 12/10/12 1. a. Given this two-period problem of labor supply maxc1 ‚n1 ‚c2 ‚n2 ln[c1 ] + ln[1 − n1 ] + βln[c2 ] + βln[1 − n2 ] subject to the intertemporal budget constraint c1 [1 + r] + c2 = w1 n1 [1 + r] + w2 n2 Dividing each side by [1+r] for convenience gives c1 + c2 w 2 n2 = w 1 n1 + 1+r 1+r We can solve for consumption and labor supply in each period (c1 ‚ c2 ‚ n1 ‚ n2 ) by first setting up the Lagrangian
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Kenneth Smith 12/19/13 NT 1230 Unit 1 Problem Set 1 Page 25 1. The general public in the United States will be able to purchase all of the Windows 7 editions in retail stores except Basic‚ Enterprise‚ and Starter. 2. The core module that provides all of the Windows 7 capabilities that isn’t language or edition-specific is called Min Win module. 3. When you copy a file to a library‚ Windows Explorer writes the file to the folder designated as the Open and Save as
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FBE 421 Prof. Briggs Problem Set #1 Please print out this document and clearly handwrite your answers to each of the questions below in the space provided. Show all your work accordingly. A. Calculate LTM (a) Revenue and (b) Net Income for Costco Wholesale (COST) using their latest financial statements as of 3Q2011. 77946+60737-53821=84‚862 MM Revenue 1303+984-871= 1‚416 MM Net-income B. Calculate Costco’s LTM (a) EBIT and (b) EBITDA. 2077+1677-1389=2‚365 MM EBIT (2077+795)+(1677+582)-(1389+549)=
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Chapter 9 Practice Problems S9-2. Asset Market Value Percentage of Total Value × Total Purchase Price = Assigned Cost of Each Asset Land $ 80‚000 $80‚000 / $160‚000 = 50% × $150‚000 = $ 75‚000 Building 60‚000 $60‚000 / $160‚000 = 38% × $150‚000 = 57‚000 Equipment 20‚000 $20‚000 / $160‚000 = 12% × $150‚000 = 18‚000 Total $ 160‚000 100% $ 150‚000 Date Accounts and Explanation Debit Credit Land 75‚000 Building 57‚000 Equipment 18‚000 Notes Payable 150‚000 To record
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Chapter 13 Problems (2‚ 9‚ 11‚ & 14) 2) Determine the coefficient of correlation and the coefficient of determination. Interpret the association between X and Y. X Y x^2 xy 5 13 25 65 3 15 9 45 6 7 36 42 3 12 9 36 4 13 16 52 4 11 16 44 6 9 36 54 8 5 64 40 39 85 211 378 r = (378) - (39)(85) / 8 = -36.375 √[211 - (39)^2 / 8] *
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Unit 1 Problem Set 1 26. Surgery Versus Splints A study compared surgery and splinting for subjects suffering from carpal tunnel syndrome. It was found that among 73 patients treated with surgery‚ there was a 92% success rate. Among 83 patients treated with splints‚ there was a 72% success rate. Calculations using those results showed that if there really is no difference in success rates between surgery and splints‚ then there is about 1 chance in 1000 of getting success rates like the ones obtained
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