25-2
pg 621
A.
Total revenues equals = 2800
Total costs = 2800
Profit = 0 = zero economic profits
B.
The firm is more than likely in the long-run equilibrium because demand curve touches the
average total cost that is profit maximizing for this firm.
25-6

Lecture 1
A Basic Valuation Model for a Multinational Corporation
Simple Domestic Valuation Model
In present value terms, the value of a firm, V, is
n
E (CF$,t )
V t 1
t
(1 k )
where:
E (CF$t )
represents expected (net) cash flows to be received a

ECON 3125
Metzgar
Chap 2
Chapter 2 Marginal Analysis
Exploration Concept Introduction - Application
-Exploration:
There is a 5-mile beach strip with a barrier at the north end and a barrier at the south end. There are
two hot-dog venders, each trying to g

Intermediate
Financial Management
12thED
by Eugene Brigham and Phillip Daves
Chapter7
AnalysisofFinancialStatements
Financial Analysis
Gather Data
Examine the Statement of Cash Flows
Calculate and Examine:
-Return on Invested Capital
(ROIC) = NOPAT / Oper

ECON 3125
Metzgar
Chap 3
Chapter 3 Optimal Pricing
Exploration Concept Introduction - Application
-Exploration:
A manager experiments with cutting price by 5%. He finds that this increases sales a great degree, by
20%. What does this experiment tell you a

P6-5
A.
20 year bond
3 month bill
1 year note
5 year bond
2.5+9% = 11.5%
2.5+5%=7.5%
2.5+6%=8.5%
2.5+8%=10.5%
b. if the real rate of interest drops to 2.0%, the nominal interest rate would decrease by 0.5 percentage point.
c. The yield curve issues is upw

23-2
a. It is found that positive change in the taste of the people towards watching movie in a theatre brings
a negative impact on the DVD movie rental business. This means the demand would decrease. The end result
is the fact that the result of the equi

10.2
nominal GDP = real
1725 trillion
a. currency has appriciated. It will result in GDp will go down which means the price declines.
This facor will result in higher prices.
b. People will have more money, causing a higher AD in short run. In the long ru

s2p = 140.85
t=1.859
z=.025= 1.96
1.859<1.96, therefore we fail to reject H0
There is no evidence of any difference in the mean computer anxiety
experienced by a male and female student.
The assumptions that I have to make about the two populations in ord