. Suppose we are in perfect capital markets. If an all equity (i. e. unlevered) firm decides to issue long-debt so that its debt to total assets ratio is 2/3, then what is the arbitrage trading strategy that we should pursue to replicate the return on equity of the levered firm

The revenues of a company increased by 39% in year one and decreased 22% in year two. what is the overall change over the two-year period?

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.