Solve the attached questions. Thank you.

2. You have collected the following data on output and total variable costs: \" m m m a. b. Identify the range of output exhibiting increasing returns (increasing MP} and the range exhibiting diminishing returns {decreasing MP}. Cmrent xed costs for the company equal $136,5U. Draw two graphs, both with Q on the horizontal axis: one graph shows WC and TC, and the other shows AVG, AC, and MC. Suppose that the government imposes a $T5, property tax hike on all businesses; how will that affect your two graphs; is, which cost curves will be affected and how? Suppose instead that the government consist your production process to he polluting, and iruposes a $35!} tax per unit produced (replacing the property tax in the previous question)- How does this tax increase compare to the property tax increase, in terms of the effect on your company's cost curves? Tfour boss says "either of these taxes is going to force us to change our production levels." Given what you know about optimization analysis, how would you respond? IS-LM Model (Based on Mankiw Ch. 12 #3). Use the information about the following economy to build the IS-LM model. a. The consumption function is given by C = 300 + 0.6(Y - ). The investment function is / = 700 - 80r. Government spending and taxes are both 500. Graph the IS curve for this economy. Be sure to label the x- and y-axes. b. The money demand function is (M/p) = Y - 200r. The money supply M is 3,000 and the price level P is 3. On the same graph as in part a.), graph the LM curve. c. Find the equilibrium interest rate r and the equilibrium level of income Y. Label the equilibrium values on your graph. d. Suppose that government spending is increased from 500 to 700. How does the IS curve shift? What are the new equilibrium interest rate and level of income? Show the shift and the new equilibrium on your graph. e. Suppose instead that the money supply is increased from 3,000 to 4,500. How does the LM curve shift? What are the new equilibrium and level of income? On a new graph, show the original IS and LM curves and then show the shift and the new equilibrium. f. With the initial values for monetary and fiscal policy, suppose that the price level rises from 3 to 5. What happens? What are the new equilibrium interest rate and level of income? On a new graph, show the original IS and LM curves and then show the shift and the new equilibrium. g. . For the initial values of monetary and fiscal policy, derive and graph an equation for the aggregate demand curve (Hint: Solve the IS and LM curves in terms of r. Then combine them and solve for Y in terms of P.). What happens to this aggregate demand curve if fiscal or monetary policy changes, as in parts d.) and e.) (simply state which direction the aggregate demand curve shifts in each case)?REVISION PART SOURCES OF FUNDS FOR ORGANISATIONS REV QUESTION I December 2008. a) The following information was extracted from the accounting records of Karibu Lid. Asaty QUI Sh. "000"" Total assets 2,400,060 Accounts payable 750,000 Sales revenue (year ended 31 December 2008) 5,000,000 Ordinary share capital 850,000 Retained earnings 50,000 Sales revenue for the year ending 31 December 2009 is expected to increase by 25% . Total assets and accounts payable are proportional to sales and that relationship will be maintained in future. The company raised sh. 150 million by floating new ordinary shares on I January 2009. The company's profit margin on sales is 6 percent. 60 per cent of the earnings attributable to ordinary shareholders will be paid out as dividends. Required: i ) Total debt for Karibu Led. as at 31 December 2008. The new long term - debt financing that ill be needed in the year 2009. AUGUST 2009 PILOT PAPER QUESTION TIVOA QUESTION 2 a) Explain four reasons that may drive a company to raise equity finance rather than debt finance. DECEMBER 2007 QUESTION TWOA QUESTION 3 Bidii Ltd expects a return on investment (ROD) of 24 % on proposed investment projects whose total cost is 5,000,000. In order to finance these investment projects the company is considering two options. Option one Issue 500,000 ordinary shares at a par value of sh. 10 each. Option two Issue 250,000 ordinary shares at a par value of sh. 10 each and obtain the balance through a bank loan at in interest rate of 15% per annum. The rate of corporation tax is 30% Required: Determine the effect of the two financing options on the earnings available to shareholders and hence advise the company on the best financing option. JUNE 2007 UESTION FOUR C QUESTION 4 b) Explain the factors that influence the type of finance sought by a manufacturing company section 3 F.M