Suppose that a car dealer has a local monopoly selling volvos. it pays w to volvo for each car that it sells, and charges each customer p. the demand curve that the dealer faces is best described by the linear function q = 30 – p, where the price is in units of thousands of dollars. suppose that the dealer has no other marginal costs of retailing, so the marginal cost of selling a car is simply the wholesale price w. a. what is the profit-maximizing price for the dealer to set? at this price, how many volvos will the dealer sell? (hint: your answers here will be a function of the wholesale price.)

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?