. Suppose that each firm in a competitive industry has the following costs: TC = 100 + ???? 2 MC = 2???? Where ???? is an individual firm’s quantity produced. The market demand curve for this product is ????=100-P Currently, there are 10 firms in the market.
A. At what quantity is ATC curve at its minimum?
B. Give the equation for each firm’s supply curve for the short-run and for the long-run.
C. Give the equation for the market supply for the short-run (when there are 10 firms in the market).
D. What is the equilibrium price and quantity for this market in the short-run? (round up to the second decimal point)
E. In this equilibrium, is there incentive for firms to enter or exit?
F. In the long-run with free entry and exit, what is equilibrium price and quantity in this market?
In: Economics
Q1)
Zemma Corp: is all equity financed with 20 million shares outstanding. Their shares trade at $15 per share. Now Zemma Corp will change its capital structure by issuing 100 million in debt. The 100 raised by the issue will be used to buyback shares at a fair price. Assume that debt will be permanent debt and that the appropriate cost of debt will be 5%. The current tax rate is 40%.
In: Finance
Zemma Corp: is all equity financed with 20 million shares outstanding. Their shares trade at $15 per share. Now Zemma Corp will change its capital structure by issuing 100 million in debt. The 100 raised by the issue will be used to buyback shares at a fair price. Assume that debt will be permanent debt and that the appropriate cost of debt will be 5%. The current tax rate is 40%.
A. Before the transaction, what is the market value of the equity today? And what will be the new total firm value when the recap is announced?
B. What will be the new share price when the recap is announced?
C. At the conclusion of this transaction, How many shares outstanding will Gemma Mine corp have?
D. At the conclusion of this transaction, what will be the debt to equity ratio?
In: Finance
please i need answer asap thank u
You own 100 acres of timberland,with young timber worth 20,000 if logged today this represent 500 cords of wood at $40 per cord. after logging the land can be sold today for 10,000($100 per acre). the opportunity cost of capital is 10%. you have made the following estimates: a) the price of a cord of wood will increase by 5% per year? b) the price of land will increase by 3% per year. c) the yearly growth rate of the cords of wood on your land are :
years 1-2: 15%:
year 3-4 :10%:
year 5-8 : 5%
years thereafter 2% please find the present value of the optimal decision.
In: Finance
Assets: Liabilities:
Cash =
$20,000
Accrued fees and expenses = $500
1,000 Shares of Stock A: Closing Price = $50
2,000 Shares of Stock B: Closing Price = $40
1,000 Shares of Stock C: Closing Price =$100 Shares Outstanding = 6,000
Total Value of the Assets = $250,000
NAV = __________________
NAV = _________________
In: Finance
You are offered a European Call option. This means you
will have the option, but not the
obligation, to buy the stock at the strike price K of
$100.
The price of the stock today is
$90. Your time discount rate is Beta=0.98, the risk-less rate of
interest is 3%.
The price of the stock follows the following process over
two periods: with probability
75% the price will not change from period 0 to period 1, but with
probability 25% will go
up to $130. Then from period 1 to period 2, with probability 25%
the price will stay the
same, and with probability 75% the price will go down by 20%.
How much would you be willing to pay as of period 0 for this
option
Show work please!
In: Finance
Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for
30 years, monthly payments.
A. (1 pt) How much of the payment is interest for month 100?
B. (1 pt) How much total interest do you pay in the first six
years?
In: Finance
At age 13 you inherited $242000 and invested it at 8% compounded annually. How much can you withdraw annually in order to deplete the account if the first withdrawal is at age 31 and the last is at age 61? Note: your answer must be within $100 of the correct answer.
In: Finance
An FCC crystal is pulled in tension along the [100] direction. (a) Determine the Schmid factor for all slip systems. (b) Identify the slip system(s) that would be activated first. (c) What is the tensile stress under which this crystal will flow plastically? (τo = 50 MPa)
In: Mechanical Engineering
Looking forward by 100 years, what technological advance do you think will be regarded at that time as having been a significant achievement of the mechanical engineering profession during the twenty-first century? Prepare a technical report of at least 250 words that explains the rationale for your speculation.
In: Mechanical Engineering