You have an income of $100 to spend on two commodities. The price of commodity 2 is constant at $1. (1) The price of commodity 1 is $2 for the first 20 units, but $1 for each additional unit exceeding 20. Draw the budget set. (2) The price of commodity 1 is $2 if 20 or fewer units are purchased, but $1 for all units (including the first 20) if more than 20 units are purchased. Draw the budget set. Now suppose income is still $100, but commodity 1 is priced according to the bulk discount of part (2) above. (3) The price of commodity 2 is $2 for the first 30 units, but $1 for each additional unit exceeding 30. Draw the budget set. (4) The price of commodity 2 is $2 if 30 or fewer units are purchased, but $1 for all units (including the first 30) if more than 30 units are purchased. Draw the budget set.

You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)