Under the value-to-book model a firm in steady state equilibrium earning ROCE = RE will A....
Under the value-to-book model a firm in steady state equilibrium earning ROCE = RE will
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A. create additional shareholder wealth and be valued above book value.
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B. maintain shareholder wealth and be valued at book value.
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C. destroy shareholder wealth and be valued below book value.
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D. be in a no-growth state.
Homework Answers
As ROCE = RE, the returns of capital invested just equals the Retained earnings, the value of the firm is nothing but the book value and the firm will maintain shareholder wealth.
Answer is B. maintain shareholder wealth and be valued at book value.
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Under the value-to-book model a firm in steady state equilibrium
earning ROCE = RE will
A....
In the Solow growth model without population growth, if an economy has a steady-state value of...
In the Solow growth model without population growth, if an economy has a steady-state value of the marginal product of capital (MPK) of 0.125, a depreciation rate of 0.1, and a saving rate of 0.225, then the steady-state capital stock per worker: Select one: a. is less than the Golden Rule level. O b. is greater than the Golden Rule level. c. could be either above or below the Golden Rule level. d. equals the Golden Rule level.
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yYt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
2. The equilibrium and steady state conditions before and after illumination of a silicon semicon...
2. The equilibrium and steady state conditions before and after illumination of a silicon semiconductor are characterized by the energy band shown in figure below. Determine for before and after illumination: (Assume room temperature, and use the semiconductor parameters given in the textbook) a) no and po the equilibrium carrier concentrations b) n and p under steady state conditions. c) No? d) e) Do we have low injection condition when the semiconductor is illuminated? What is the resistivity of the...
5. Under the assumptions of Solow's growth model, assume the economy is in a steady state....
5. Under the assumptions of Solow's growth model, assume the economy is in a steady state. How will the steady-state levels of output and consumption per capita change in response to the following events: (a) A large part of the capital stock disappears - is "blown up", as in a war. (This is what happens in most wars, though wars kill people too.) (b) A huge refugee wave (as we see currently flowing from Syria): the population goes up (instantly)...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
In the Solow growth model, the steady-state occurs when: (a) capital per worker is constant (b)...
In the Solow growth model, the steady-state occurs when: (a) capital per worker is constant (b) capital per worker is growing (c) capital per worker is falling (d) the saving rate = depreciation rate
3. (Steady state in the Solow model) Consider two economies identical in everything except the production...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
Please answer these questions (they are all connected): 4. Consider an economy in steady state that...
Please answer these questions (they are all connected):
4. Consider an economy in steady state that has population growth n04, technological growth at rate g-.02, and a depreciation rate δ-.04. The savings rate is s-40 and the production function is y-vk, what is the rate of growth of aggregate output Y in steady state? A.) 2 percent (.02) B.) 4 percent (.04) C.) 6 percent (.06) D.) 10 percent (.10) E.) None of the above or we aren't given enough...
5. Draw a well-labeled graph that illustrates the steady state of the Solow model with population...
5. Draw a well-labeled graph that illustrates the steady state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes. a. A change in consumer preferences increases the saving rate. b. A change in weather patterns increases the depreciation rate. c. Better birth-control methods reduce the rate of population growth d. A one-time, permanent improvement in tech- nology...
In the Solow growth model without population growth, if an economy has a steady-state value of the marginal product of capital (MPK) of 0.125, a depreciation rate of 0.1, and a saving rate of 0.225, then the steady-state capital stock per worker: Select one: a. is less than the Golden Rule level. O b. is greater than the Golden Rule level. c. could be either above or below the Golden Rule level. d. equals the Golden Rule level.
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yYt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
2. The equilibrium and steady state conditions before and after illumination of a silicon semiconductor are characterized by the energy band shown in figure below. Determine for before and after illumination: (Assume room temperature, and use the semiconductor parameters given in the textbook) a) no and po the equilibrium carrier concentrations b) n and p under steady state conditions. c) No? d) e) Do we have low injection condition when the semiconductor is illuminated? What is the resistivity of the...
5. Under the assumptions of Solow's growth model, assume the economy is in a steady state. How will the steady-state levels of output and consumption per capita change in response to the following events: (a) A large part of the capital stock disappears - is "blown up", as in a war. (This is what happens in most wars, though wars kill people too.) (b) A huge refugee wave (as we see currently flowing from Syria): the population goes up (instantly)...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
Please answer these questions (they are all connected):
4. Consider an economy in steady state that has population growth n04, technological growth at rate g-.02, and a depreciation rate δ-.04. The savings rate is s-40 and the production function is y-vk, what is the rate of growth of aggregate output Y in steady state? A.) 2 percent (.02) B.) 4 percent (.04) C.) 6 percent (.06) D.) 10 percent (.10) E.) None of the above or we aren't given enough...
5. Draw a well-labeled graph that illustrates the steady state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes. a. A change in consumer preferences increases the saving rate. b. A change in weather patterns increases the depreciation rate. c. Better birth-control methods reduce the rate of population growth d. A one-time, permanent improvement in tech- nology...
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