Xyz family inc. has developed a new product. the market demand for this product is given as follows: q = 1640 - 40p (which means the inverse demand is given by: p = 41 - 0.025q). a. if the product is priced at $21, what is the point price elasticity of demand? is demand elastic or inelastic (pick one)? (2+1 = 3 points) b. if they give a very small discount from the price of $21, what will happen to the total revenue of xyz family inc. from this product? explain why. (2+2 = 4 points) c. xyz family inc. wants to produce where the total revenue is maximized. what price should they charge and what quantity should be sold to achieve that goal? show your work. (1+2+2 = 5 points)

New team of management has taken over. as a result, organizational changes from a country-club style leadership where everyone does whatever they want has changed to a more mechanistic, structured, top-down management style. what ethical issues should the employees consider and how should they go about addressing these?

Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.

Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) wacc %