The cost function of a competitive firm is C = 16Q1/2 + Q2 in the long run after the fix costs are paid. The marker demand curve is estimated as D(P) = 200 – 15P. In the long run. What is the competitive equilibrium output level, competitive equilibrium price, and the number of firms in the market?
In: Economics
Which one of the following is the primary determinant of an investment's cost of capital?
Life of the investment
Amount of the initial cash outlay
The investment’s level of risk
The source of funds used for the investment
The investment's net present value
In: Finance
In a random sample of 40 refrigerators, the mean repair cost was $133.00 and the population standard deviation is $17.20. A 95% confidence interval for the population mean repair cost is left parenthesis 127.67 comma 138.33 right parenthesis.
Change the sample size to n=80. Construct a 95% confidence interval for the population mean repair cost. Which confidence interval is wider? Explain. Construct a 95% confidence interval for the population mean repair cost.
The 95% confidence interval is ( _____, _____ ). (Round to two decimal places as needed.)
In: Finance
A company has an EBIT of $4,520 in perpetuity. The unlevered cost of capital is 15.98%, and there are 25,750 common shares outstanding. The company is considering issuing $9,910 in new bonds at par to add financial leverage. The proceeds of the debt issue will be used to repurchase equity. The YTM of the new debt is 11.06% and the tax rate is 33%. What is the weighted average cost of capital after the restructuring?
In: Finance
In: Finance
How does the focus on the value chain impact managerial cost accounting?
In: Accounting
A company is considering investing in a new project that will cost $6,589,490 and increase net income by 8.18%. This project will be completely funded by issuing new equity shares. Currently, the firm has 2,196,490 common shares outstanding with a market price of $32.91 per share. The current earnings per share are $1.79. What will be the earnings per share if the project is implemented?
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$1.73 |
|
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$1.77 |
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$1.82 |
|
|
$1.86 |
|
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$1.91 |
In: Finance
what is the real life application of implicit and explicit cost for airline industry
In: Economics
Consider a competitive firm whose cost is given by
C = 60 + 2Q + 4Q2 .
The product sells at $26 per unit.
(1) Find the optimal quantity of output in the short run.
(2) Evaluate the profitability of the optimal quantity of output that you found in (1). If it is a loss, make a decision whether or not the firm should shut-down. Provide a reason for your decision.
(3) What long-run adjustments should you expect? Explain.
In: Economics
Write 3-4 paragraphs The Economic Cost and Benefits of Legalizing Weed?
In: Economics