Question

In: Finance

Al and Peggy are splitting up, and they need to divide an HDTV, a new couch...

Al and Peggy are splitting up, and they need to divide an HDTV, a new couch and a stock portfolio. They decide to use the Adjusted Winner procedure, and each of them assigns a total of 100 points, to be split among the three items.

Al assigns 84 points to the TV, 9 points to the couch, and the rest of his points to the stock portfolio. Peggy assigns 9 points to the TV, 52 points to the couch, and the rest of her points to the savings account.

With those point assignments, Al gets the TV, Peggy will take the couch, and they will split the stock portfolio. What percentage of the stock portfolio will Al get?

Round your answer to the nearest whole percent, but do not include a % symbol with your response.

Solutions

Expert Solution

These points are added with respect to stock portfolio's allocation. we added x points of 39 which peggy had allocated to stock portfolio and added (1-x) points of 9 which Al had allocated to stock portfolio.

PEGGY = 52 ( these points he already had of couch) + 39 x ( x points of 39, which he had allocated to stock portfolio)

AL = 84 ( these points he already had of TV) + 9 (1-x) ( 1- x points of 9, which he had allocated to stock portfolio)


Related Solutions

To purchase a new couch that costs 2100 dollars, you set up a store credit card...
To purchase a new couch that costs 2100 dollars, you set up a store credit card that charges interest at 14.7 percent convertible monthly, beginning immediately. Each month that you do not make a payment (starting one month after you purchase the couch), you are charged a 30 dollar fee that is added to your card balance. Due to financial difficulties, you cannot make a payment until 6 months after you purchase the couch. To pay off the card balance,...
To purchase a new couch that costs 2100 dollars, you set up a store credit card...
To purchase a new couch that costs 2100 dollars, you set up a store credit card that charges interest at 14.7 percent convertible monthly, beginning immediately. Each month that you do not make a payment (starting one month after you purchase the couch), you are charged a 30 dollar fee that is added to your card balance. Due to Önancial di¢ culties, you cannot make a payment until 6 months after you purchase the couch. To pay o§ the card...
Joan moves into her new apartment and wants to purchase a new couch. She wants to...
Joan moves into her new apartment and wants to purchase a new couch. She wants to determine if the average cost of couches at Store 1 is cheaper than Store 2. At Store 1 the average cost of 20 couches is $650 with a standard deviation of $61. At Store 2 the average cost of 22 couches is $730 with a standard deviation of $78. At alpha = .05, what are the results if you want to determine that Store...
a.) Why do cells divide or why do cells need to divide? b.) The differences in...
a.) Why do cells divide or why do cells need to divide? b.) The differences in cell division process(es) between prokaryotic and eukaryotic organisms. Be sure to provide details of the differences in a logical manner.
Define "splitting up the value chain and list some factors that have allowed this trend to...
Define "splitting up the value chain and list some factors that have allowed this trend to accelerate in recent years?
Kopperud Electronics has an investment opportunity to produce a new HDTV. The required investment on January...
Kopperud Electronics has an investment opportunity to produce a new HDTV. The required investment on January 1 of this year is $215 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm has a 25 percent tax rate. The price of the product will be $575 per unit, in real terms, and will not change over the life of the project....
O'Bannon Electronics has an investment opportunity to produce a new HDTV. The required investment on January...
O'Bannon Electronics has an investment opportunity to produce a new HDTV. The required investment on January 1 of this year is $190 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $535 per unit, in real terms, and will not change over the life of the...
O'Bannon Electronics has an investment opportunity to produce a new HDTV. The required investment on January...
O'Bannon Electronics has an investment opportunity to produce a new HDTV. The required investment on January 1 of this year is $190 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $535 per unit, in real terms, and will not change over the life of the...
Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on...
Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on January 1 of this year is $155 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $515 per unit, in real terms, and will not change over the life of...
Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on...
Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on January 1 of this year is $200 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $485 per unit, in real terms, and will not change over the life of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT