Table 11-3
This table describes the defense demands for three equal sized groups of people in Nirvanaville. The second, third, and fourth column shows the quantity that a group will demand for a given price (the first column).

Refer to Table 11-3. If the marginal cost of national defense is constant at $12 per unit, what is the efficient level of national defense to provide?

Group of answer choices

3 units

13 units

22 units

33 units

Under its executive stock option plan, National Corporation granted 20 million options on January 1, 2021, that permit executives to purchase 20 million of the company’s $1 par common shares within the next seven years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $24 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. Suppose that the options expire without being exercised.

Ignoring taxes, what journal entry will National record? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Miglietti Restaurants is looking at a project with the following forecasted? sales: ? first-year sales quantity of 33,000?, with an annual growth rate of 4.00?%

over the next ten years. The sales price per unit will start at $43.00 and will grow at 2.00% per year. The production costs are expected to be

55?% of the current? year's sales price. The manufacturing equipment to aid this project will have a total cost? (including installation) of 2,300,000.

It will be depreciated using? MACRS and has a? seven-year MACRS life classification. Fixed costs will be 350,000 per year. Miglietti Restaurants has a tax

rate 35?%. What is the operating cash flow for this project over these ten? years? Find the NPV of the project for Miglietti Restaurants if the manufacturing

equipment can be sold for 140,000 at the end of the? ten-year project and the cost of capital for this project is 99?%.

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $2,000 for the first thousand posters, $1,600 for the second thousand, and then $1,000 for each additional thousand posters. Instructions: Round your answers to 3 decimal places.

a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters?

2,000?

10,000?

b. What is her ATC per poster if she prints 1,000?

2,000?

10,000?

c. If the market price fell to 95 cents per poster, would there be any output level at which Karen would not shut down production immediately? (Yes/ No)

Imaging you want to invest in a project with a lifetime of 5 years. The revenue of this project comes from selling products. Initiating the project requires $100,000 investment on non-depreciable assets with no salvage value. The operating cost is estimated as $50,000 in the first year (at the end of the interval). You expect to produce and sell 1000 units of products per year (consider the revenue at the end of intervals). Operating cost and products unit price will increase at the rate of average inflation which is estimated to be 5% over the lifetime of the project.

If the tax rate is 30%, what is the minimum price of the product (in constant dollar) that makes the project acceptable at the market interest rate of 15%?

(Report your answer in dollar amounts without any extra character. Answers such as 2Million; 2M; 2,000,000 or $2000000 are not acceptable)

NPV.  Miglietti Restaurants is looking at a project with the following forecasted​ sales: ​ first-year sales quantity of 31,000​, with an annual growth rate of 4.00​% over the next ten years. The sales price per unit will start at ​$43.00 and will grow at 2.00 % per year. The production costs are expected to be 55​% of the current​ year's sales price. The manufacturing equipment to aid this project will have a total cost​ (including installation) of $2,400,000. It will be depreciated using​ MACRS, and has a​ seven-year MACRS life classification. Fixed costs will be $360,000 per year. Miglietti Restaurants has a tax rate of 30​%. What is the operating cash flow for this project over these ten​ years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipment can be sold for $140,000 at the end of the​ ten-year project and the cost of capital for this project is 7​%.

Imagine that you are the CEO of Moet Hennessy Louis Vuitton SE (LVMH). You have just received share price valuation estimates for a potential buyout target, Rimowa, from two of your top financial analysts. Both analysts used the discounted cash flow (DCF) model to estimate the share price resulting in a valuation of $50, by the first analyst and $60, by the second analyst.

You made a buyout offer of $55 a share and Rimowa’s CEO rejected it. The German luxury luggage brand Rimowa is crucial to LVHM’s strategic expansion into brands that have heritage and a unique position. As the CEO of LVHM what would you do to meet LVHM’s strategic objective while minimizing the cost to acquire Rimowa? Briefly defend your recommendation.

Anne has 30,000 dollars that she can spend on health care (c1) and a composite good of everything else (c2). The price of a unit of health care is p1 = 50 dollars and the price of the composite good is p2 = 1.

a) Draw Anne’s budget constraint in a graph with c1 on the horizontal axis and c2 on the vertical axis.

b) Anne is offered a health insurance policy. The policy premium (the up front cost of the policy) is 4,000 dollars. The policy offers to cover 80% of Anne’s health care expenses up to a maximum of 100,000 dollars. It has a deductible of 1,000 dollars, meaning that Anne has to pay the first 1,000 dollars of expenses herself after which the 80% coverage kicks in. Draw Anne’s budget constraint if she purchases the health insurance

Anne has 30,000 dollars that she can spend on health care (c1) and a composite good of every- thing else (c2). The price of a unit of health care is p1 = 50 dollars and the price of the composite good is p2 = 1.

1)Draw Anne’s budget constraint in a graph with c1 on the horizontal axis and c2 on the vertical axis.

2)Anne is offered a health insurance policy. The policy premium (the up front cost of the policy) is 4,000 dollars. The policy offers to cover 80% of Anne’s health care expenses up to a maximum of 100,000 dollars. It has a deductible of 1,000 dollars, meaning that Anne has to pay the first 1,000 dollars of expenses herself after which the 80% coverage kicks in. Draw Anne’s budget constraint if she purchases the health insurance.

Coronado Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,492,700 of 10% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 8%.

As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)