In 2012,70%of rich people were self made in the USA.That is the updated answer in 2012.
Answer:
b. $50.00
Explanation:
Intrinsic per share stock price immediately after the repurchase will be $50
Answer:
Select the answer that best describes the strategies in this game.
- Both companies dominant strategy is to add the train.
Does a Nash equilibrium exist in this game?
- A Nash equilibrium exists where both companies add a train. (Since I'm not sure how your matrix is set up I do not know the specific location).
Explanation:
we can prepare a matrix to determine the best strategy:
Swiss Rails
add train do not add train
$1,500 / $2,000 /
add train $4,000 $7,500
EuroRail
do not add train $4,000 / $3,000 /
$2,000 $3,000
Swiss Rails' dominant strategy is to add the train = $1,500 + $4,000 = $5,500. The additional revenue generated by not adding = $5,000.
EuroRail's dominant strategy is to add the train = $4,000 + $7,500 = $11,500. The additional revenue generated by not adding = $5,000.
A Nash equilibrium exists because both companies' dominant strategy is to add a train.
Answer:
C. Reject W
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) which is shown below:
Expected return = Risk-free rate of return + Beta × (Market rate - Risk-free rate of return)
= 7% + 1.6 × (12%-7%)
= 7% + 1.6 × 5%
= 7% + 8%
= 15%
The Project W should be rejected as it gives only 14% expected return which is less than the derived expected return.
