What will the firm’s stock price be immediately after the firm announces its refinancing plan? [ad_1] 1. A firm currently has equity with a market value of $500 million and debt with a market value of $500 million. The firm has 10 million shares outstanding. The bonds offer investors a return of 8%. The firm […]
Draw Krispy Kreme’s average total cost curve, average variable cost curve, average fixed cost curve and marginal cost curve. Be sure to carefully label all four curves as well as the x-axis and y-axis. [ad_1] 1. Consider the production of donuts in the short run at Krispy Kreme donuts. Assume that capital is fixed in
a shift in the labor supply curve can be caused by? [ad_1] 1. a shift in the labor supply curve can be caused by a. demographic changes, immigration, other employment opportunities, and changes in the wages rate. b. demographic changes, immigration, immigration, and other employment opportunities. c. Only changes in the wages rate. d. demographic changes, , immigration, , immigration,
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What is the equilibrium interest rate? What happens to the equilibrium interest rate if the supply of money is reduced from 3,000 to 2,400? [ad_1] Suppose that the money demand function is: (M/P)^d = 900 – 60i where r is the interest rate in percent. The money supply M is 3,000 and the price level