A. HGG Co. has just now paid a dividend of $3.65 per share and the dividends are expected to grow at a constant rate of 5% forever. If the current price of the stock is $55 per share, calculate the expected return or the cost of equity capital for the firm. (0.5 score) B. The HNH Corporation offers 4-year, 9 percent coupon bonds with annual payments and a yield to maturity of 7.8 percent. What is the market price of a $1,000 face value bond? (0.5 score)

1. an economy consists of three workers: larry, moe, and curly. each works 10 hours a day and can produce two services: mowing lawns and washing cars. in an hour, larry can either mow one lawn or wash one car; moe can either mow one lawn or wash two cars; and curly can either mow two lawns or wash one car. a. calculate how much of each service is produced under the following circumstances: a. all three spend all their time mowing lawns. b. all three spend all their time washing cars. c. all three spend half their time on each activity d. larry spends half of his time on each activity, while moe only washes cars and curly only mows lawns b. using your answers to part a, draw a production possibilities frontier and label points a, b, c, and d on your graph. explain why the production possibilities frontier has the shape it does. c. are any of the allocations calculated in part a inefficient? explain.