Consider a stock with current year dividend equal to $2.00 per share. You believe the dividend will grow 15% per year for 10 yea
1 answer:
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Answer:
the Cournot-Nash equilibrium, Simon's production is 82 units
Explanation:
The Cournot-Nash Equilibrium for Simon's production is calculated as follows:
Reaction function of Carl is as follows:
Carl maximize profit at
⇒
⇒
Set
Reaction function of Simon
Since Simon maximize profit at
Set
Substituting equation (1) into equation (2)
Thus; the Cournot-Nash equilibrium, Simon's production is 82 units
Answer:
a. See attachment below
b. 60 seconds per unit
c. 4 workstations
d. See attachment below
e. Efficiency = 81.25%
Explanation:
b.
Time required = 60 units per hour
Task time = Time required to for production per units
Since 1 hour is required for 60 units and there are 3600 seconds in one hour (60 * 60)
This is calculated by.
3600seconds/60 units
= 60 seconds per unit
c. Theoretical Number of workstations is calculated by:
Total Time Taken/Task Time
=(30 + 50 + 25 + 10 + 25 + 15 + 10 + 30)/60
= 195/60
= 3.25
This is round up to 4 workstations
d. See Attachment Below
e. Efficiency is calculated as:
(Total Time Taken)/ (Theoretical Workstations * Task Time)
= 195/(4 * 60)
= 195/240
= 0.8125
= 81.25%
Answer:
The bonds sell for $825.63
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. The bonds are annual bonds so the coupon payment is per year.
Coupon Payment = 1000 * 0.057 = $57
Total periods = 15
The formula to calculate the price of the bonds today is attached.
Bond Price = 57 * [( 1 - (1+0.077)^-15) / 0.077] + 1000 / (1+0.077)^15
Bond Price = $825.63
