The hull petroleum company and inverted v are retail gasoline franchises that compete in a local market to sell gasoline to consumers. hull and inverted v are located across the street from each other and can observe the prices posted on each other's marquees. demand for gasoline in this market is q= 80-12 and both franchises obtain gasoline from their supplier at $410 per gallon. on the day that both franchises opened for business, each owner was observed changing the price of gasoline advertised on its marquee more than 10 times: the owner of hull lowered its price to slightly undercut inverted v's price, and the owner of inverted v lowered its advertised price to beat hull's price. since then, prices appear to have stabilized. under current conditions, how many gallons of gasoline are sold in the market, and at what price? instructions: enter your responses rounded to the nearest two decimal places gallons sold: price: $

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

Amanda works as an industrial designer

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?