Susan's preferences can be represented by the utility function x0.51x0.52, where x1 is pounds of chocolate and x2 is pounds of bologna. the price of chocolate is $3 per pound, and the price of bologna is $4 per pound. with income of $1200, susan currently maximizes her utility by purchasing 200.00 pounds of chocolate and 150.00 pounds of bologna.

the government imposes a tax of $2 per pound on chocolate.

how many pounds of chocolate will susan purchase if she maximizes her utility with the tax in place?

how much tax revenue will the government collect from her? $

what dollar amount of an income tax, instead of the quantity tax, would leave susan equally well off? $ (round your answer to the nearest cent.)

Which two of the following are benefits of consumer programs

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions