In the repeated-game airline example, what happens if the game is played forever, but one or both firms care only about current profit? Assume that United Airlines (UA) and American Airlines (AA) are playing a two-firm, quantity-setting game. Quantities are in thousands of passengers per quarter; profits are in millions of dollars per quarter. Suppose the game is played forever, but one or both of the airlines care only about current profit. What is the Nash equilibriumLOADING... in the first (or next) period of this game? A. The Nash equilibrium is for American to produce qequals48 and United to produce qequals64. B. This game does not have a Nash equilibrium. C. The Nash equilibrium is for both airlines to produce qequals64. D. The Nash equilibrium is for both airlines to produce qequals48. E. The Nash equilibrium is for American to produce qequals64 and United to produce qequals48.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

If the family’s net monthly income is 7,800 what percent of the income is spent on food clothing and housing?