ABC has made a bundle selling software and has begun paying cash dividends. The firm’s CFO would like the firm to distribute 50% of its annual earnings (POR = .50) and adjust the dividend rate to changes in EPS at…
You have decided to become a rock concert promoter and have made arrangements with Jerry Jones (and Arlington) to rent the new Texas Stadium for one night for a cost of $1,000,000 plus a $7 per ticket “participation” fee. (He…
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a…
Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.40 a share for two years commencing four years from today. After that time, the company plans on…
Calculate the range of marginal revenues on the vertical portion of the MR curves at the level of output where a kink in demand curves takes place. Identify the level of output where there is a kink in the demand…
Data description universal package service, ltd., (ups) delivers small parcels to business addresses in the greater boston area. to learn more about the demand for its services, ups has collected the following data on the number of deliveries per week…
Barnes Air Conditioning, Inc., has two classes of preferred stock: floating rate preferred stock and straight (normal) preferred stock. Both issues have a par value of $100. The floating rate preferred stock pays an annual dividend yield of 6 percent,…
In this problem we consider the differences between the competitive, monopoly, and Cournot equilibria under the same cost conditions. Demand is: Q = 10,000 – 1000 P and marginal cost (and average cost) is constant at MC = $6. a.…
1. Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X*YUB(X,Y) = X*Y3 Therefore:• For consumer A: MUX = Y; MUY = X• For consumer B: MUX = Y3; MUY…
Assume an economy lasts for 2 periods. In period 1, only 1 agent is born, this agent lives for 2 periods. In period 2, two agents (who only live in period 2) are born. The consumer born in period 1…
