ECON 4400 Midterm: F09_midterm.pdf
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Write your name and student number at the top of this page. Each question answered is worth 10 points, the total is 40 points. be clear what formulas you use to arrive at a solution, the actual numerical answers are not important. If you think a question is ambiguous or not enough information is provided to answer it, explain why. you have 75 minutes. 240 (a) determine the missing balance-sheet amounts in the table. Give one example of each. (c) de(cid:133)ne the current ratio. 1: consider a world with two periods, 0 and 1. You are a consumer facing income stream (c0; c1) = (50; 55). (a) assume that (cid:133)nancial markets are perfect and r = 10%. Draw a graph with your consumption opportunity set. (b) assume you are o ered investment projects a, b, c with cash (cid:135)ows a : ((cid:0)10; +12),
