Consider a numerical example using the Solow growth model. Suppose that F(K, N) = K^ 0.5N^ 0.5, with d = 0.1, s = 0.2, n = 0.01, and z = 1, and take a period to be a year.
(a) Determine capital per worker, income per capita, and consumption per capita in the steady state.
(b) Now, suppose that the economy is initially in the steady state that you calculated in part (a). Then, s increases to 0.4.
i. Determine capital per worker, income per capita, and consumption per capita in each of the 10 years following the increase in the savings rate.
ii. Determine capital per worker, income per capita, and consumption per capita in the new steady state.
iii. Discuss your results; in particular comment on the speed of adjustment to the new steady state after the change in the savings rate, and the paths followed by capital per worker, income per capita, and consumption per capita.

Molander corporation is a distributor of a sun umbrella used at resort hotels. data concerning the next month’s budget appear below: selling price per unit $ 29 variable expense per unit $ 14 fixed expense per month $ 12,450 unit sales per month 980 required: 1. what is the company’s margin of safety? (do not round intermediate calculations.) 2. what is the company’s margin of safety as a percentage of its sales? (round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.

Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chance’s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)

John has served as the chief operating officer (coo) for business graphics, inc., a publicly owned firm, the past 5 years. which of the following statements about john is correct? both john and the ceo of business graphics must certify to the sec that the firm's financial statements are accurate. as the coo, john will be ranked higher than the ceo but still below the cfo. in john's postition as the coo, it is highly unlikely that he would also be the chairperson of the board of directors. as the coo, john would typically be involved with accounting, finance, and asset purchase decisions.