Econ 6000 Assignment Example | Topics and Well Written Essays - 750 words

Econ 6000 - Assignment ExampleIf it has lots of large(p) and/or cash-on-hand stored up, it doesnt need to worry as much nigh its overall assets since its got liquidity. 4) show the net present note value problem illustrated on varlet 46. Assume the road commissioner is certain that the value of the land will increase to $1.2 million three years from now. If the bond be stable at 3%, is the investment still a good idea? Show your work. Even if the bond stays stable at 3%, the value of the land increasing to $1.2 million dollars will not pay back off. If one divides the profit that would be gained by 3 in order to analyze how much notes per year would be made in increasing land value, the investment might not be worth the time because one has to keep in mind the interest on that money cannot be made back, nor does that take into account for inflation. Overall, for the afoot(predicate) footing, it is not a good buy. 5) Examining the case of LTCM on page 53, pay attention to the characterization of the Russian default as a sigma 9 outcome. LTCM operated for a itty-bitty over 60 months. If the entire month was described as a sigma 9 event, what is the possibility of that event happening in any given month? Explain what you think might be problems in trying to estimate the likelihood of events like the Russian default. The chances of a sigma 9 default happening in LTCM on any given month depends upon the degree to which the company is trusted. An issuer will not back virtually organization it cannot trust. According to Png and Lehman (2007), A major for investors is the possibility that the issuer will default. Issuers, however, have better information about their own financial condition and likelihood of... Econ 6000 Of the five theories of profit presented, explain two theories that might gull to Intel. Feel free to supplement your response with information from their annual report. The annual reports demonstrate that Intel is doing quite tumefy finan cially. According to Png and Lehman, Intel is the dominant manufacturer of IBM-compatible microprocessors. The ability to maximize ones profit is key. One theory is that this success might have to do with the fact that, according to Png and Lehman, the profit-maximizing scale of operation is where bare(a) revenue equals marginal cost. Another possibility is that game theory might play a role because the company has exacted a certain success by banking on other factors, such as a niche market with a widening customer base. According to Png and Lehman (2007), Game theory explains why competing sellers tend to cut harmsellers tend to compete on price, although collectively, they could raise profit by avoiding price competition3) Describe how the shareholder wealth-maximization model of the firm on page 8 of your text relates to the imagination of net present value, introduced on page 45. How do you think this relationship affects current firm decisions? Relationships affects curren t firm decisions based upon horizontal boundaries. The way to calculate the Cross-Price Elasticity of Demand is the utilization of the formula of the percentage change in the quantity of demand for RoboGizmo (10%) divided by the percent change in price for the iDoodad product (12.5%).