Answer: 16 units more than social optimum.
DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96
Explanation:
Q=1200 - 4P and Q=-240 + 2P
In a free market quantity demand =quantity supplied
1200 -4P = -240 +2P
P =240
Sub P
Q* = 240
Socially optimal quantity is
Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC
MPC= marginal private cost =inverse of supply function
MPC = (1/2)*Q + 120
MEC=12
MSC =(MPC +MEC) = (1/2)Q +120 +12
MSC= MPB where MPB is marginal private benefit = inverse of demand functn
MPB = 300 -(1/4)Q
(1/2)Q + 132 =300 - (1/4)Q
Q° = 224
Difference btw Q* & Q° = 16 units more than social optimum.
DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96
You do not have a question posted, so we cannot answer.
Answer: $7
Explanation:
Firstly, we'll calculate the equity which will be:
= Value of operations - Value of debt
= $1000 - $300
= $700
Then, the intrinsic price will be:
= Equity/Number of shares
= $700/100
= $7
Therefore, the intrinsic per share stock price immediately after the distribution will be $7
Answer:
Capitalization rate is 3.67%
Explanation:
The capitalization rate is the rate of return expected from a commercial property. In order to find the capitalization rate we divide the net operating income of the building by its current value. The value of the building is 215,000. The revenue from the building is 22,560 (470*4*12), We get this by multiplying the monthly rent of each apartment by 4 as their are 4 apartments and then multiplying that by 12 as we need the yearly revenue. The costs are 65% of gross rental receipts so costs = 0.65*22,560= 14,664
The annual operating income is 22,560-14,664= 7,896
The capitalization rate is annual operating income/Current value of property so
7,896/215,000= 3.67%
Answer:
Book Value Per Common Share = $33.80
Explanation:
Book Value Per Common Share = Stockholders' equity - Shares * Call Price per shares) / Shares of common stock outstanding
= ($626,575 - 825*63) / 17000
= ($626,575 - $51,975) / 17,000
= $574,600 / 17,000
= $33.80