Please show all work! Correct answers are:
KL= 10.78%, P1= $59.39
Homework Answers
Required return=risk free rate+beta*(market rate-risk free rate)
=2+1.35*(8.5-2)
=10.78%(Approx)
Required return=(D1/Current price)+Growth rate
0.1078=(3.775/57)+Growth rate
Growth rate=0.1078-(3.775/57)
=0.0415719298
Price expected=Current price*(1+Growth rate)
=57*(1+0.0415719298)
=$59.39(Approx).
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Please show all work! Correct answers are:
KL= 10.78%, P1= $59.39
Suppose that you have the...
Please show all work! Correct answers are: Required Return= 7.48%, Expected Return = 11.53%, so undervalued...
Please show all work! Correct answers are:
Required Return= 7.48%, Expected Return = 11.53%, so
undervalued
Suppose that you have the following information about Firm K: P, = $49, ê, = $52.50, D, = $2.15 Bx = 0.92, Market Risk Premium = 6.5%, R, = 1.5% Is Firm K's stock overvalued, correctly priced, or undervalued? Support your answer with calculations and explain.
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Have question about 7 and 8. Could you please explain why both of these are wrong?...
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Please show all work.
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Please show all work! Correct answers are:
Required Return= 7.48%, Expected Return = 11.53%, so
undervalued
Suppose that you have the following information about Firm K: P, = $49, ê, = $52.50, D, = $2.15 Bx = 0.92, Market Risk Premium = 6.5%, R, = 1.5% Is Firm K's stock overvalued, correctly priced, or undervalued? Support your answer with calculations and explain.
Please help! Show all work and label answers clearly please!
Thank you!
2. (12 total points, Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm's production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm's Total Cost function? TC(Q) = b) (8 points) Suppose the firm is producing...
Please solve and show steps
Question 1 Pleasesho l laculations to get cr) a. Suppose you are the manager of a watchmaking firm operating in competitive market. The price of the watches from the competitive market is p. The firm's cost function is given by TC 450150+202.Find equations for the marginal cost curve, average cost curve, average variable cost curve and the supply function of this firm (all the fixed costs are sunk); draw the supply function clearly showing the...
Please show all work.
PART II. Problems 1. Suppose the market for canola oil is perfectly competitive. There are 1.000 firms in the market, each of which have a fixed cost of FC = 2 and a marginal cost of MC = 1 + q, where q is the quantity produced by an individual firm. Let s denote the total quantity supplied in the market. The market demand for canola oil is given by Qd = 15, 250 - 250P....
Please show all work.
Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which carn be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output. 1. Draw the isoquant that corresponds to that level of production (600 units) in a graph that has L on the horizontal axis and...
Have question about 7 and 8. Could you please explain why both of
these are wrong?
77. In a competitive market where worker's wage (W), rental rate of capital (R) and the price of output (P) are exogenous any firm will hire workers and capital up to the point where MPL =W/P and MPK = R/P. T8. For a country with a Cobb-Douglas production Y = F(KL) – AK"L" (A > 0,0 <01 1,0 < < 1 being constant parameters),...
Please show all work.
Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which carn be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output. 1. Draw the isoquant that corresponds to that level of production (600 units) in a graph that has L on the horizontal axis and...
Please answer G and H fully! Both graphically and explain in
words!
1) Imagine that you work for a firm that sells good x in a perfectly competitively market You know that you are one of 100 firms in this market and that they all have the same short run individual supply function q 2 P-0.5 P1 +0.5 K You also know that there is only one type of consumer, that there are 100,000 of them in the market, and...
Please show all work. correct answers to a and b are in
parenthesis. Thanks!
1. The density of air is to be determined by measuring pressure and temperature for insertion in the ideal-gas equation: p=pRT The value of R for air is 287.1 J/kg-K and may be assumed to be exact for this calculation. The temperature and pressure are measured as T = 55 +0.4°C p=125 +0.5 kPa Determine the nominal value for density in kg/m' and its uncertainty using...
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