Jack b. nimble and jack b. quick are differentiated oligopolists selling candlesticks in a certain market. both can charge either a high or a low price. the payoff matrix below shows their annual profits (in $ million) under the four possible price combinations. matrix cells are identified by letters in their upper right corners.

nimble

high

low

quick

high

(a) pn = 16

pq = 17

(b) pn = 23

pq = 12

low

(c) pn = 14

pq = 18

(d) pn = 12

pq = 13

22. does nimble have a dominant strategy? if so, what is it?

23. does quick have a dominant strategy? if so, what is it?

24. in the absence of collusion, which cell shows the equilibrium price combination in the market?

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Aprofessional does specialized work that's primarily: degree based. medical or legal. well paying. intellectual and creative

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)