A thug wants the contents of a safe tells the safe's owner, " will kill you if you don't open the safe, and let you live if you do." Similar games appear in many films, including Die Hard, Crimson Tide, and The Maltese Falcon. Assume for simplicity the game tree is illustrated in the figure to the right. 1. Who moves first?
2. Should the owner believe the threat and open the safe?
3. What is the equilibrium? Does the safe's owner believe the thug's threat? Does the safe's owner open the safe?
4. What is the subgame perfect Nash equilibrium?
A. The Nash equilibrium is for the owner to open the safe and for the thug to kill regardless of whether the owner opens the safe.
B. The Nash equilibrium is for the owner to open the safe and for the thug to not kill regardless of whether the owner opens the safe.
C. The game does not have a Nash equililbrium.
D. The Nash equilibrium is for the owner to not open the safe and for the thug to only kill if the owner does not open the safe.
E. The Nash equilibrium is for the owner to open the safe and for the thug to only kill if the owner does not open the safe.

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?

Why is investing in a mutual fund less risky than investing in a particular company’s stock?