Need ALT text   Suppose the MSB corresponds to ([a], $[c])…

Need ALT text   Suppose the MSB corresponds to ([a], $[c]) at under allocation, ([b], $[d]) at optimal allocation and the MSB exceeds the MPB by $ [e] for each unit consumed at the under allocation. What is the value of the social welfare loss eliminated at the optional allocation?  

Congratulations on completing this 7-week course in Equity A…

Congratulations on completing this 7-week course in Equity Analysis!  This is a free (and optional) space where you may communicate anything you wish to communicate to me about the course, the exam, your semester experience, etc.  I wish you the best in your future endeavors!  Note: full credit will be given no matter the content of your response and you may apply “NA” if needed.

Suppose the graphs below represent Jose’s budget constraints…

Suppose the graphs below represent Jose’s budget constraints for different goods.  Need ALT text     Suppose the prices of and do not change; the price of    increases; and the price of   decreases.                                                                              Select the best match.

Assume an investment will generate cash flows at the end of…

Assume an investment will generate cash flows at the end of Years 1 through 3 equal to $200, $300, and $500, respectively; from that point, the investment begins to generate a series of constant-growth perpetual cash flows. Calculate the present value of these cash flows at the end of Year 0, assuming a discount rate of 7% and a 2% constant growth rate for the perpetuity. Calculate the present value weighted average growth rate for this investment.  [a] [b]

Assume Company A that operates in the transportation equipme…

Assume Company A that operates in the transportation equipment industry and has an estimated equity beta of [Ab] is planning to merge with Company B that operates in the trucking and warehousing industry and has an estimated equity beta of [Bb]. At the time of the announcement of the merger, Company B’s equity was twice the market value of Company A’s equity. Estimate the combined firm’s equity beta after the merger, assuming that debt in the merged entity will be equal to the pre-merger debt of Company A and Company B combined and the merger is not expected to create or destroy value. Round your answer to two decimal places.