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Please answer part b Your firm's operating costs are given by C = 3800 + 100Q + 5Q2. The firm's total assets are given by
Please answer part b
Your firm's operating costs are given by C = 3800 + 100Q + 5Q2. The firm's total assets are given by TA = 1000 + 50 Q, and the firm is financed 30% with debt. The equity investors require a 20% rate of return, the cost of debt is 10%, and the tax rate is 25%. You have chosen to produce a Q of 20, with a price of 425. o At this P and Q combination, what are the values for r, R, and O?... Suppose you are now regulated, and regulators force you to produce Q = 20, with P = 375. With everything else still the same, what now are the values for a, R, and O? Your firm's operating costs are given by C = 3800 + 100Q + 5Q2. The firm's total assets are given by TA = 1000 + 50 Q, and the firm is financed 30% with debt. The equity investors require a 20% rate of return, the cost of debt is 10%, and the tax rate is 25%. You have chosen to produce a Q of 20, with a price of 425. o At this P and Q combination, what are the values for r, R, and O?... Suppose you are now regulated, and regulators force you to produce Q = 20, with P = 375. With everything else still the same, what now are the values for a, R, and O
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