Answer:
Answer for the question:
Consider the following five constraints x1 + 2x2 ≤ 3, x1 − x2 ≥ 0, 2x1 + x2 ≤ 3, x1 + 5x2 ≤ 6, x1 − 2x2 ≥ −1. (a) Sketch the feasible region and find the degenerate vertex x0. (b) How many possible working sets are there at x0? (c) Suppose that we wish to minimize x1 + x2 subject to these constraints, starting at x0 and using the simplex method. Find a working set A0 for which the Lagrange multiplier vector λ (the solution of AT 0 λ = c) contains at least one negative component λs, but the simplex search direction satisfying A0p = es is not a feasible descent direction. Draw a picture showing p emanating from x0. What are the blocking constraints? (d) Under the same conditions as in part (c), find a working set A¯ 0 for which the Lagrange multiplier vector contains at least one negative component, but the associated search direction ¯p is a feasible descent direction. Draw a picture showing ¯p emanating from x0. (e) Can you find a feasible descent direction at x0 if we wish instead to minimize −x1 − x2? Explain your answer.
is given in the attachment.
Explanation:
Answer:
there would be a rise in equilibrium quantity and an indeterminate effect on equilibrium price
Explanation:
as a result of the scientists revelation, the demand for oranges would increase and so would the price.
as a result of the new fertilisers been used, the supply of oranges would rise and price would fall.
taking these two occurrences together, there would be a rise in equilibrium quantity and an indeterminate effect on equilibrium price
Jack is making an assumption while john is making a believable excuse
Answer and Explanation:
The computation is shown below:
a. The current stock price is
As we know that
Current stock price = (Dividend) ÷ (Required rate of return - growth rate)
= ($8) ÷ ( 10% - 5%)
= $160
b. Now the value of the ROE on the firm’s investment opportunities is
Given that
Dividend = $8
And,
The payout ratio = Dividend ÷ Earning per share
= $8 ÷ $12
= 0.666666666666667
And, retention ratio (b) is
= 1- 0.666666666666667
= 0.333333333333333
In addition to it
indefinite growth rate (g) = 5%
So, the ROE is
= Growth rate ÷ retention ratio
= 0.15 ÷ 0.3333
= 15%
c. And, the market paying per share is
PVGO = Price - Earning per share ÷ required rate of return
where,
PVGO = Present Value of Growth Opportunity
So, the market paying per share is
= $160 - $12 ÷ 10%
= $160 - $120
= $40
