mondalkajol960

A manufacturing firm’s production function is Q = KL + K + L. The price r of capital services is equal to 1, and let w denote the price of labor services. If the firm is required to produce 5 units of output, for what values of w would a cost-minimizing firm use

a) only labor?

b) only capital?

c) both labor and capital?

A norman window has the shape of a rectangle surmounted byasemicircle. (Thus the diameter of the semicircle is equal tothewidth of the rectangle.) If the perimeter of the window is 30ft,find the dimensions of the window so that the greatestpossibleamount of light is admitted.

4. Assume a corporation issues a 30-year bond with 30 warrants attached and a 4.8% coupon rate when market rates of interest on bonds of similar risk are 6.6%. The warrants have a strike price of $10 per share.

A) What is the implied value of each warrant is the bond is initially sold for its $1,000 par value. (4 pts)

B) What is the actual cost of debt (%) if the warrants are exercised 12 years after the bond is issued when the stock is selling for $18 per share? (5 pts.)