Chang, Monica and Haley went into business as a limited partnership running a restaurant. Chang and Monica managed the restaurant and ran the day-to-day operations. Haley had no role in running the restaurant. Chang and Monica each invested $500,000 and Haley contributed the building and land, which was appraised at $1 million. Brady, a customer, had a severe peanut allergy and ordered a peanut-free dish, but was negligently served a dish with peanuts and suffered severe long-term health effects. Brady sued the partnership and was awarded a judgment for $3 million. Brady managed to seize the assets of the partnership to satisfy his judgment, having the property and building sold, and seizing all other property, but $1.5 million remains unpaid. What result

73. calculate the weighted average cost of capital (wacc) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%. (a) 15.6% (b) 16.0% (c) 15.0% (d) 16.6% (e) none of the above

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

The five steps to financial success a. five money myths b. five foundations