Matt and ann both decide to go to a concert with free tickets. we know that a. neither bears an opportunity cost because the tickets were free. b. the cost of going to the concert is greater for the one who had more choices to do other things. c. both bear an opportunity cost since they could have done other things instead of see the concert. d. both bear the same opportunity cost since they are doing the same thing.

Drew owns the what-not shop, which he is trying to sell so that he can retire and travel. the shop owns the building in which it is located. this building was built at a cost of $647,000 and is currently appraised at $819,000. the counters and fixtures originally cost $148,000 and are currently valued at $65,000. the inventory is valued on the balance sheet at $319,000 and has a retail market value equal to 1.1 times its cost. jake expects the store to collect 96 percent of the $21,700 in accounts receivable. the firm has $26,800 in cash and has total debt of $414,700. what is the market value of this firm?

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.