Drugco needs to determine the proper capacity level for a new drug, niagara. it costs $10 to build enough capacity to produce one unit of drug per year. all construction cost is incurred during year 0. it costs $10 per year to maintain a previously-built unit of annual production capacity. in year 1 we know demand will be 160,000 units of niagara. after that demand will grow randomly. assume the actual growth rate of demand during any year is normally distributed with a standard deviation of 6%. the mean growth in demand for niagara is equally likely to assume any value between 10% and 20%

Which of the following statements is correct? a) one drawback of forming a corporation is that it generally subjects the firm to additional regulationsb) one drawback of forming a corporation is that it subjects the firms investors to increased personal liabilitiesc) one drawback of forming a corporation is that it makes it more difficult for the firm to raise capitald) one advantage of forming a corporation is that it subjects the firm's investors to fewer taxese) one disadvantage of forming a corporation is that it is more difficult for the firm's investors to transfer their ownership interests

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?

Double corporation acquired all of the common stock of simple company for