The correct answer for the question that is being presented above is this one: "<span> iv). Q1 =40.5, Q2 =25.5, P=70."
The correct answer for the question that is being presented above is this one: "</span><span>iii). are needed to guarantee the existence of equilibrium."
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The correct answer for the question that is being presented above is this one: "<span>ii). all risk averse decision makers will prefer lottery B to lottery A."
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The correct answer for the question that is being presented above is this one: "<span> iv). £1/(1+r)3."</span>
To solve:
If we assume there are 30 days in the month then the policy was held by the original owner from November 1st – May 15th which is 195 days. Assuming there are 30 days in the month there are 360 days in the year and that is equal to 1,080 for the insurance policy. If we divide the price of the policy, $1,164 by the amount of days the policy will be held for 1,080 then the policy is worth $1.08 a day. Next, take the amount of days the original owner held the policy and multiply it by the amount per day the policy costs (195)($1.08) = $210.60 Then, we need to subtract $210.60 from the full cost of the policy ($1,164 - $210.60) = $953.40 The buyer should pay the seller $953.40 at closing.
Answer: a) total assets will increase by less than four percent
Explanation:
Since the tax rate and the dividend payout ratio are fixed, and you have net working capital and all costs varying directly with sales, the total assets will increase by a value that is less than the annual increase in sales.
