AcF 214 Tutorial
Week 9
Question 15.22
Markum Enterprises is considering permanently adding $100 million
of debt to its capital structure. Markums corporate tax rate is 35%.
a. Absent personal taxes, what is the value of the interest tax shield
from the n

ECON 211 - Mathematics for Economics
Topic 6: Constrained Optimisation
Aurlie Slechten
e
Department of Economics (LUMS)
1 / 57
1. Introduction
2 / 57
Denitions
The framework of constrained optimisation problems includes an
objective function and one or mo

ECONOMICS
Midterm Test: ECON 220: Intermediate Microeconomics 1
(90 Minutes)
Please answer all 3 questions.
1. Rachel spends her income, Y , on Rock Shows (R) and Sunglasses (S) with prices pR and pS .
Rachels preferences are given by the Cobb-Douglas uti

Econ 211 2015/16
Seminar Questions 5
Solutions
1. (a)
(b)
(1 )
Y
=
L
Ae t
(
)
Y
L
1+
( )
Y
=
K
Ae t
(
(1 ) K
dK
=
dL
L
)
Y
K
1+
1+
<0
d 2 K (1 ) ( + 1) K
=
L L
dL2
1+
>0
(c) Homogeneous of degree 1 so CRS.
(d) The sum of the remuneration

DEPARTMENT OF ECONOMICS
Econ 211: MATHEMATICS FOR ECONOMICS 2014-15
COURSE AIMS & OBJECTIVES, KEY SKILLS AND LEARNING OUTCOMES
Course Aim
Economic problems are often addressed using mathematical models, which are to be specified,
analysed and then tested

ACF214M Principles of Finance
Tutorial Questions 2015-2016
Alexey Akimov
Qiyu Zhang
Tutorial Questions Week 6
1. Star technology plc has just paid a dividend of 8 per share in 2014. An analyst has
estimated that the target price of the stock is 102 per sh

From the Board
The Arithmetic of Active
Management
by William F. Sharpe, Timken Professor Emeritus of
Finance, Stanford University, and Chairman, William
F. Sharpe Associates
'Today's fad is index funds that track the Standard & Poor's 500. True, the aver

ACF214M Principles of Finance
Tutorial Questions 2015-2016
Alexey Akimov
Qiyu Zhang
Tutorial Questions Week 5
1. Your investment portfolio consists of 15,000 invested in only one stock Microsoft.
Suppose the risk-free rate is 5%, Microsoft stock has an ex

REVIEW QUESTION 1
For each transaction, identify the real and/or
financial assets that trade hands. Are any
financial assets created or destroyed in the
transaction?
a. Toyota takes out a bank loan to finance the
construction of a new factory.
b. Toyota p

REVIEW QUESTION 1
If the offering price of an open-end fund is
$14.20 per share and the fund is sold with a
front-end load of 7%, what is its net asset
value?
1
ANSWER
NAV = Offering price (1 load)
= $14.20 0.93
= $13.21
2
REVIEW QUESTION 2
A closed-end f

ECON 211 - Mathematics for Economics
Topic 5: Unconstrained Optimisation
Aurlie Slechten
Department of Economics (LUMS)
1 / 32
A. Denitions and notations
Let
f (x) = f (x1 , x2 , ., xn )
n2
be a function of several variables dened on a set D Rn .
For all

Econ 211 2015/16
Seminar Questions Solutions 6
1.
a)
b)
c)
d)
2.
a)
= 6(3) ; increases without limit.
= (0.5) ; . converges on zero with oscillations.
= 2(0.4) ; converges on zero without oscillations.
= 4(2) ; explosive oscillations around zero.

ECON 211 2013/14 SPECIMEN TEST FOR 2015/16
TEST 1
Friday November 15th 2013, 09.00
ANSWER ALL QUESTIONS
TIME ALLOWED 45 MINUTES
7 8 7
1. Use the determinant criterion to check if the columns of matrix = 4 5
0 are
6 7 5
linearly dependent.
[8 Marks]
2. Fin

ACF214M Principles of Finance
Tutorial Solutions 2015-2016
Alexey Akimov
Qiyu Zhang
Tutorial Solutions1 Week 2
1. Explain the difference between a sunk cost and an opportunity cost and give an example of
each.
Answer:
Sunk costs are costs that have been i

Tutorial Solutions Week 6
1. Star technology plc has just paid a dividend of 8 per share in 2014. An analyst has
estimated that the target price of the stock is 102 per share based on a forecast that the
companys dividends will increase by 20% in 2015, 18

Econ 220 - Week 6 Tutorial Worksheet - Solutions
Slutsky and Hicks Decompositions
Short Questions
1. Consider the gure below, which has two indierence curves, U1 and U2 (U2
corresponds to a higher level of utility) and two budget constraints, BC1 and
BC2.

ACF214: Mock Test
SOLUTIONS:
Question 1.
a) You are analyzing a project and have developed the following estimates. The depreciation is
$52,000 a year and the tax rate is 34 percent.
Base Case
Lower Bound
Upper Bound
Unit Sales
6,700
5,900
7,200
Sales pri

ACF214: Mock Test
TOTAL TIME ALLOWED: 50 MINUTES
GUIDELINES:
MCQs
30
MARKS
1. Please write in blue or black pen in the
exam booklet.
2. Read the questions carefully before
attempting to answer in the booklet.
Question 1
35
MARKS
3. This test is closed boo

Econ 211 Tutorial 7
Unconstrained Optimisation
1. Find the critical points of the following functions and classify each as a local maximum, local
minimum or saddle point.
a) (, ) = 2 3 + 5( )2 6
b) (, ) = ( + )2 ln 2
c) (, ) = 3 + 3 3
Are these local extr

DEPARTMENT OF ECONOMICS
Econ 212: INTRODUCTION TO ECONOMETRICS 2015-16
COURSE AIMS & OBJECTIVES, KEY SKILLS AND LEARNING OUTCOMES
Course Aims & Objectives:
This half unit course aims to provide an introduction to the fundamental theoretical concepts and
a

ECON 211 2013/14 MOCK TEST 2015/16
TEST 1 ANSWERS
Friday November 15th 2013, 09.00
ANSWER ALL QUESTIONS
TIME ALLOWED 45 MINUTES
7 8 7
1. Use the determinant criterion to check if the columns of matrix = 4 5
0 are
6 7 5
linearly dependent.
[8 Marks]
| = 1

DEPARTMENT OF ECONOMICS
Econ 211: MATHEMATICS FOR ECONOMICS 2014-15
COURSE AIMS & OBJECTIVES, KEY SKILLS AND LEARNING OUTCOMES
Course Aim
Economic problems are often addressed using mathematical models, which are to be specified,
analysed and then tested

Banking and Credit
Fall 2016
Homework 3
(Ch13, 18, 19)
Name:_ Student ID #:_ Section #_
Q1: Briefly discuss and explain the reasons for the Glass-Steagall Act in 1933? (10
points) ch13
During the Great Depression years 1930-1933, some 9,000 bank failures