Answer:
Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .
Limitations of Game Theory :
The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.
b. What fraction of the firm will you own after the VC investment? (Round your answer to 1 decimal place.)
Answer:
(a) 1,370,000 shares
(b) 42.19%
Explanation:
Given that,
Shares in a restaurant chain venture = 1,000,000 shares
Price of each share = $1.00
(a) To raise the additional $1,370,000:
Shares will you need to sell:
= Additional amount ÷ Price of each share
= $1,370,000 ÷ $1.00
= 1,370,000 shares
(b) No. of Shares After investment:
= Shares need to sell + Shares in a restaurant chain venture
= 1,370,000 + 1,000,000
= 2,370,000 shares
Therefore, the fraction of the firm will you own after the VC investment:
= (Shares in a restaurant chain venture ÷ No. of Shares After investment) × 100
= (1,000,000 ÷ 2,370,000) × 100
= 0.4219 × 100
= 42.19%
Answer:
Preparation of Cash flow statement is below:-
Explanation:
Please find the full information of question
The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation—equipment (29,800 ) (23,700 ) Total $130,000 $113,100 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,100 Income taxes payable 7,100 8,000 Bonds payable 26,300 32,500 Common stock 18,200 13,600 Retained earnings 49,700 42,900 Total $130,000 $113,100 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200. Prepare a statement of cash flows for Nosker Company using the direct method.
Nosker Company
Statement of cash flow
For the year ended 31 December, 2017
Cash flow from operating activities
Receipt from customers $228,300
($242,100 - $13,800)
Less Cash payment
Suppliers $173,500
($175,500 + $10,600 - $12,600)
Operating expenses $8,300
(23,900 - $15,600)
Income tax expenses $900
($8,100 + $900)
Interest expenses $35,100
Cash flow from investing activities
Sale of equipment $8,700
Net cash provided by Investing activities $8,700
Cash flow from financing activities
Issuance of company stock $4,600
Less: Land Redemption $6,200
Less: Payment of cash dividend $25,400
Net cash used by financing activities $27,000
Net Increase in cash $16,800
Beginning cash $19,600
Cash at end of period $36,400
Answer:
37%
Explanation:
The computation of the weighted average contribution margin ratio is shown below:
= Contribution margin ratio × weightage
= 30 × 65% + 50 × 35%
= 37%
We simply multiplied the contribution margin ratio with the weightage so that the weighted-average contribution margin ratio could come and the same to be considered
purchase order
employee time ticket
receiving document
Answer:
job cost sheet
Explanation:
The job cost sheet refers to the statement used to report production costs and is developed by businesses using a work-order charging system to measure and assign costs of goods and services.
is the responsibility of the accounts department to chart all production costs (primary supplies, direct labor and overhead production) on the work cost sheet. For each worker, a separate job expense sheet is arranged.
Job cost sheet not gets utilized for paying work expenses only, it's also component of the reporting records of the business. It is also used in the system account as something of a subordinate ledger to the project as it includes all the information about the work being done.
Answer:
X demand would rise by 8% ; Y demand would fall by 4%
Explanation:
Price Elasticity of Demand is the responsiveness in demand quantity, due to change in good's price
P.Ed = % change in demand / % change in own price
Cross Price Elasticity is the responsiveness in a good's demand quantity, due to change in other good's price
C.Ed = % change in demand (Y) / % change in other good's price (X)
Given {Good X Elasticities} : P.Ed = (-) 4 ; C.Ed = 2
Price of X decrease = 2%
P.Ed = 4 = % change in demand / 2
% change in demand of X = 2 x 4 = 8%
P.Ed absolute value ignoring negative has been taken due to law of demand price - demand inverse relationship already depicting it. So, 2% fall in price of X increases it's quantity demanded by 8%
C.Ed = 2 = % change in Y demand / 2
% change in Y demand = 2 x 2 = 4%
Cross Price Elasticity of demand is positive in case of substitute goods. These goods can be interchange-ably used to satisfy a particular want. Substitutes price & demand are directly related;- as price fall of a good makes it relatively cheap, increases its demand, decreases other good's demand. So, 2% decrease in good X price decreases good Y demand by 4%
Answer:
The balance of Common Stock for Grayson Company is $8,300
Explanation:
For computing the common stock value, first we have to compute the ending retained earning balance which is shown below
= Beginning retained earning balance + revenues - expenses
= $3,300 + $10,100 - $7,550
= $5,850
Thus, the ending balance is $5,850
Now by applying the accounting equation we can compute the common stock value
Accounting equation is equals to
Assets = Liabilities + Equity
where,
Assets = Cash + Accounts receivable + Land
= $5,000 + $2,100 + $8,600
= $15,700
Liabilities = Accounts payable = $1,550
And, Equity = Ending Retained earnings balance + common stock
= $5,850 + common stock
Now, apply the above accounting equation which is shown below:
$15,700 = $1,550 + $5,850 + common stock
$15,700 = $7,400 + common stock
So, common stock = $8,300
Hence, the balance of Common Stock for Grayson Company is $8,300