Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side Increase Decrease Need at least $200,000 200,000 0.155 200,000 160,000 200,000 Total bonds can't be

image text in transcribed
Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side Increase Decrease Need at least $200,000 200,000 0.155 200,000 160,000 200,000 Total bonds can't be more than Stocks 0 0.095 0 200,000 160,000 Municipal bonds can't be more than T bonds 0 0.04 0 100,000 80,000 Only have $90K in muncipal bonds 50,000 0 90,000 Infinity ???? ** Shadow price is the same as dual price. If I had to cash in $250,000, how much additional tax would I pay ? If I only had $70,000 in municipal bonds, how much additional tax would I pay? | I What is the maximum allowable decrease in the right-hand-side of the last constraint (blue shaded box)? Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side Increase Decrease Need at least $200,000 200,000 0.155 200,000 160,000 200,000 Total bonds can't be more than Stocks 0 0.095 0 200,000 160,000 Municipal bonds can't be more than T bonds 0 0.04 0 100,000 80,000 Only have $90K in muncipal bonds 50,000 0 90,000 Infinity ???? ** Shadow price is the same as dual price. If I had to cash in $250,000, how much additional tax would I pay ? If I only had $70,000 in municipal bonds, how much additional tax would I pay? | I What is the maximum allowable decrease in the right-hand-side of the last constraint (blue shaded box)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Accounting Finance And Auditing For Lawyers

Authors: Lawrence A. Cunningham

5th Edition

0314912606, 978-0314912602

More Books

Students also viewed these Accounting questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago