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then the exchange rate between Australia and the United States should be 4:3. Why might purchasing power parity be different from the exchange rate?
Cars arrive at a rate of one every 5 minutes (or 12 per hour), and the number of arrivals per time period is described by the poisson distribution. What is the average time for cars waiting in the l
Explain why you think we have chosen to include the price commodity Z in the above regression. (b) Evaluate the above regression results. (c) What type of commodity is Z? Can you be sure?
Derive the first mover's best-response function when its marginal cost is 2 and 20. Graph these best-response functions; then for k = 8 show the first mover's best-response function.
What do you think is the greatest problem with this approach? Do you think that fiscal policy can solve this problem, or do you think that the government should allow the economy to fix itself?
Suppose that to ease the burden on renters, the local community has instituted a price ceiling of $480. Does consumer surplus increase due to this price ceiling? Does social welfare increase as a res
What change in the economic environment led to this new equilibrium? Is the consumer better off or worse off as a result of the pricechange?
The real rate of interest on TIPS is 4.5% per year and the expected rate of inflation in the U.S. is 5% per year. What is the expected nominal rate of return on these bonds?
If 45% of Peggy's securities have an expected return of 10.8% and 25% have an expected return of 16.5%, what is the expected return of the remaining portion of Peggy's portfolio?
If the yield of the risk-free zero-coupon security with term to maturity of four months is 7.5%, calculate the implied dividend for OzDesign Press.
Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Kecia's permanent income?
The cash expenses for this project are $1,700 per laptop. The tax rate is 40%. If he uses a cost of capital equal to 13%, what is the NPV for this project?
The terms of the lease are seven annual payments at an interest rate of 10%, which will fully amortize the cost of the car. What is the annual lease payment?
Once under their control, Zenith Corporation will generate cash flows of $20 million per year for five years. The cash flows are net of taxes. The IRR of this investment is?
Project B has an initial capital outlay of $6 million. It will be a ten year annuity at the same discount rate as Project A. What are the annualized capital costs of both projects?
ZB Enterprises has a beta of 1.1. If the risk-free rate is 8.5 and the market risk premium is 5%, at what price would a share of ZB stock be expected to sell?
The earnings and dividends of the company are expected to grow forever at a rate of 6 percent per year. What annual rate of return does Gough expect on his investment?
Compass has a completely unfunded pension plan and North has a fully funded pension plan. The assets side of the North market-value balance sheet will comprise?
The French Franc interest rate is 4.5% per year, what is the "break-even" value of the future dollar/French Franc exchange rate one year from now?
It is then expected to grow at a rate of 6 percent per year forever. The appropriate discount rate for Beazley's stock is 17 percent. What is the price of the stock?
Based on your research, write a 1,500-word summary on what you have learned about this country's economy. How would you rate the overall economic well-being for your country?
Would it be profitable to develop the new production process if Dupont has a MC of $125/ton? Explainwould it be profitable to develop the new production process if Dupont has a MC of $175/ton? explain
Select a country of your choice and collect the following data for the most recent year available: GDP (you may use the purchase power parity figures). Per capita GDP.
There are three types of goods: inferior, normal, and luxurious. Which of these types do Toyota cars belong to? How will the demand for Toyota cars change during recession in a country.
If the numbers of home and commercial users are equal, and you cannot distinguish between commercial and home users, what is the most profitable pricing strategy?