Answer & Explanation:
a. The game tree for this sequential-move game is as follows:
"The image is attached below"
Therefore, if Big Panda climbs the tree the cost for him will be 2kilocalories, thus his payoff will reduce by 2Kc.
Similarly, if Little Panda climbs the tree there will be cost of 0Kc for climbing the tree.
b. When the rollback equilibrium is used, then Little panda will choose not to climb the tree corresponding to Big Panda's strategy for climbing the tree.
That is the payoff will be as:
If BP climbs the tree the payoff cost will be 4Kc, 4Kc
If BP don't climbs the tree the payoff cost will be 9Kc, 1Kc
In this case Big panda will chosoe not to climb the tree.
Therefore the rollback equilibrium will be equal to 9Kc, and 1Kc.
Answer:
$45.28
Explanation:
The computation of price of a forward contract is shown below:-
Cash flows Future Value Amount Amount
A $45.60 $45.6 × exponential(0.021 × 2) $47.55599
B $1.10 $1.10 × exponential(0.021 × 1) $1.123344
C $1.15 $1.15 × exponential(0.021 × 0) $1.15
So, The value of forwards contract = Amount of A - Amount of B - Amount of C
= $47.55 - $1.12334 - $1.15
= $45.28
Answer:
Cost of preferred stock will be 5.78 %
Explanation:
We have given par value = $100
Dividend rate = 5.5 %
So annual dividend 
We know that cost of preferred stock is given by 
Current price is given as $95.02
So cost of preferred stock will be = 
%
Answer:
a, c , d
investment
decreasing
no effect
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Externalities
Investment spending by businesses includes purchases made by businesses. So, investment spending increases. Net export decreases because import is a negative function of GDP. The increase and decrease cancel each other out and there would be no change in GDP
