To raise revenue, the mayor decides to charge hotels a tax of $10 per rented room. after the tax is imposed, the going rate for hotel rooms rises to $108, and the number of rooms rented falls to 900. calculate the amount of revenue this tax raises for smalltown and the deadweight loss of the tax. (hint: the area of a triangle is ½ × base × height.)

What is private equity investing? who participates in it and why? how is palamon positioned in the industry? how does private equity investing compare with public market investing? what are the similarities and differences between the two? why is palamon interested in teamsystem? does it fit with palamon’s investment strategy? how much is 51% of teamsystem’s common equity worth? use both a discounted cash flow and a multiple-based valuation to justify your recommendation. what complexities do cross-border deals introduce? what are the specific risks of this deal? what should louis elson recommend to his partners? is it a go or not? if it is a go, what nonprice terms are important? if it’s not a go, what counterproposal would you make?