1. Economic prosperity persists and the average real income of all citizens increases by twenty percent (20%). What happens to the equilibrium price and quantity of all inferior goods? Why?

2. The cost of producing new car transmissions increases. What happens to the equilibrium price and quantity of cars? WHY?

3.Several new firms enter the new truck market and begin producing trucks. What happens to the equilibrium price and quantity of trucks? WHY?

4. Two new firms begin producing and selling trucks. At the same time, market preferences shift toward trucks and away from passenger cars. What happens to the equilibrium price and quantity of Trucks? WHY?

Question 1

Describe an equity cost problem and discuss why the use of Economic Value Added (EVA) may alleviate the problem.

Question 2.

Describe a back-loaded earnings problem and discuss which managers are likely to have the problem.

Question 3.

1. A CFO says, “The dividend growth model implies that the current stock price equals the present value of future dividends. We thus increase dividend payouts rather than retaining earnings to maximize the stock price." Do you agree with the CFO? Justify your answer. (You do not have to criticize the dividend growth model but discuss the CFO's interpretation of the model.)

2. Regarding the CFO's statement above, a treasurer responds as follows: “I do not agree. Retained earnings can be reinvested in our projects, which provide growth opportunities to our firm. We thus rather retain earnings as much as possible in any circumstances." Do you agree with the treasurer? Justify your answer. (Your objection to CFO's statement above does not necessarily imply that you agree with the treasurer. Assess the treasurer's statement independently.)

Question 4.

Suppose that your firm has higher fixed cost-to-variable cost ratio than comparable firms. Explain how EBITDA multiple valuation would be influenced by the difference in this ratio.

Question 5.

Provide a reason why a privately-held firm is valued higher/lower than comparable publicly-held firms. To get the full mark, you must discuss both cases.

Cash inflow and outflow factors, along with project life, were modeled as discrete and continuous random variable. In your opinion, how do you think risk can best be managed or controlled? Is there a method we have not discussed that you find more effective/beneficial? Please explain.

Subject - International Business.

If china becomes global leader by 2050 what will be the impact ? Explain.

Are we going back to the budget deficit cycle again? Is it because of slow recovery or the war against terror or the slow down global economy or protective trade policy?

Did 19th century thinkers agree with Adam Smith. How did , for instance Karl Marx view the doctrine of Laissez-Faire? What were the inevitable consequences if such economic system?

What were the influences of Adam Smith and his critics, like Marx, reflected in the mixed economy of the United States Today

INDPHARMA - U.S. Pharma, U.S. consumers, and Indian Pharma

Please be as detailed as possible:

Do the benefits from trade with the Indian pharmaceutical sector outweigh the losses?

The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 23 years, what is the present worth of the desalting option revenue at an interest rate of 5% per year?

The present worth of the desalting option revenue at an interest rate of 5% per year is determined to be $

Why would the petroleum producing countries form a cartel (OPEC) to determine the price of their product?

Using a well-labelled diagram, explain how a shift in preferences towards a situation where parents derive less utility from children can affect the optimal fertility decisions.

Samantha earns a weekly income of $6000. Suppose she wishes to spend this income on two goods books and dresses only. A book costs $200 while a dress costs $600.

i. Draw Samantha’s budget line. Putting books on the Y axis.

ii. Suppose her income increases to $9000 per week, illustrate what happens to her budget line.

iii. Suppose the price of books increase to $600, while her income and the price of dresses is unchanged. Illustrate what happens to her budget line.

List and explain three properties of indifference curves.

31. Suppose a company is considering buying a new copier. The new machine is less labor intensive, and would save somewhat on the wage bill. A clerical assistant, working 10 hours a week (for 50 weeks a year), would not be needed any longer. This assistant, including all benefits and other compensation costs, costs $20 an hour.

A. What is the annual wage savings?

B. Suppose that the machine would last for 5 years. It requires a maintenance agreement, which would cost $500 annually. Use a discount rate of 5%. What is the most the company should be willing to pay for it?

What is the difference between a production function and an​ isoquant?

A.

A production function describes the maximum output that can be achieved with any given combination of inputs. An isoquant identifies the different types of inputs that can be used to produce various levels of output.

B.

A production function describes the minimum output that can be achieved with any given combination of inputs. An isoquant identifies all of the different combinations of inputs that can be used to produce one particular level of output.

C.

A production function describes the maximum output that can be achieved with any given combination of inputs. An isoquant identifies all of the different combinations of inputs that can be used to produce one particular level of output.

D.

A production function describes the minimum output that can be achieved with any given combination of inputs. An isoquant identifies the different types of inputs that can be used to produce various levels of output.