Two people take turns removing stones from a pile of n stones. each person may, on each of her turns, remove either one stone or two stones. the person who takes the last stone is the winner; she gets $1 from her opponent. find the subgame perfect equilibria of the games that model this situation for n = 1 and n = 2. find the winner in each subgame perfect equilibrium for n = 3, using the fact that the subgame following player 1’s removal of one stone is the game for n = 2 in which player 2 is the first-mover, and the subgame following player 1’s removal of two stones is the game for n = 1 in which player 2 is the first mover?

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Your father offers you a choice of $120,000 in 11 years or $48,500 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. if money is discounted at 11 percent, what is the present value of the $120,000?