Henry is planning to purchase a Treasury bond with a coupon rate of 3.48% and face value of $100. The maturity date of the bond is 15 May 2033. (a) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.61% p.a. compounded half-yearly.
In: Finance
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Your company is evaluating a project that will require the purchase of an asset with a price of $16,000 the shipping will cost an additional $1,500 and installation will be $850. The new project will require an increase in inventory of $300, an increase in A/R of $200 and an increase in A/P of $100 in the initial period. Assuming tax rate of 30%, what is the initial outlay, in year 0, for this project? |
In: Finance
one Japanese firm and one American firm dominate the US market of widgets. They share the same cost structure: TC = 251 + 40q. The only demand for widgets is in the US and is p = 100 – Q.
If these two firms compete in quantity at the same time, what is the Cournot equilibrium output, price, profit level by each firm?
In: Economics
Consider the following hypothetical market for CDs. Suppose that the demand curve for CDs is given by QD=200-10P and suppose that the supply curve for CDs is give by QS=20P-100. a) Sketch the supply curve and the demand curve. b) What are the equilibrium price and quantity of CDs? c) Calculate the amount consumers paid (in total) for CDs
In: Economics
Suppose the supply curve for steel is given by P=Q and the
demand for steel is given by P=100- 2Q. The production of steel is
associated with a constant external cost of $10 per unit.
a. Calculate the private equilibrium. What are equilibrium price
and quantity?
b. What is the deadweight loss associated with the private
equilibrium. Calculate and draw a sketch.
In: Economics
Henry is planning to purchase a Treasury bond with a coupon rate of 2.12% and face value of $100. The maturity date of the bond is 15 May 2033.
(a) If Henry purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)?
Assume a yield rate of 3.62% p.a. compounded half-yearly.
In: Finance
Consider a stock that most recently paid a dividend of $0.75. The company plans to increase dividends by 50% each year for the next 3 years, then by 20% each year for 4 years, and then level off to a permanent growth rate in dividends of 6%. If the actual stock price today is $100, what is the implied required rate of return
In: Finance
Consider a stock that most recently paid a dividend of $0.75. The company plans to increase dividends by 50% each year for the next 3 years, then by 20% each year for 4 years, and then level off to a permanent growth rate in dividends of 6%. If the actual stock price today is $100, what is the implied required rate of return?
In: Finance
Suppose the domestic demand for coffee is given by the equation Q = 100 - P, domestic supply by the equation Q = P. The world price for coffee is $20 per unit. The government decides to impose an import quota limiting imports to 10 units. How much deadweight loss will this generate?
Please explain clearly using graphs.
In: Economics
2. If the demand function for X is Q = 100 - P, and the supply function for X is Q = 40 + 2P, determine the effects on: (a) equilibrium price, (b) quantity traded and (c) government revenue (or cost) if:
In: Economics