Provide step by step solutions with explanation

4. (30 points) Consider the following game. There are ten dollars to divide. Two players are each required to simultaneously name an integer between 0 and 10. The player who names the higher number gets to keep the money. If they name the same number, the money is equally shared between them. (a) Describe the set of players /, the set of strategies {S,lien, and the payoff function fuiliEN. (b) Are there strategies that are strictly dominated? Demonstrate your reasoning. What are the resulting strategies after iterated elimination of strictly dominated strategies? (c) Find the best responses (correspondence) for each player. That is, find the strategies that maximize a player's payoff given what the other player does. (d) Find the Nash equilibria of the game. (e) Suppose now the game is changed. Whenever there is a tie, each player receives nothing. Answer the same questions in parts (b) and (c). Find the pure-strategy Nash equilibria of the game.36, Appalachian Airlines began operating in 2008. The company lost money the first year but has been profitable ever since. The company's taxable income (EBT) for its first five years is listed below. Each year the company's corporate tax rate has been 40%%. Year Taxable Income 2008 $4,000,000 2009 $1,000,000 2010 $2,000,000 2011 $3,000,000 2012 $5,000.000 Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions and that the current provisions were applicable in 2008. How much did the company pay in taxes in 20117 A. $688,500 B. $765,000 C. $ 800.000 D.$ 930,000 E. $1,023,000 ") (4-2) Liquidity ration 37. The current and quick ratios both help us measure a firm's liquidity. The current ratio measures the relationship of the firm's current assets to its current liabilities, while the quick ratio measures the firm's ability to pay off short-term obligations without relying on the sale of inventories. A Truc B. False 4 1(4-6) PE ratio 38, The price/earnings (P E) ratio tells us how much investors are willing to pay for a dollar of current earnings. In general, investors regard companies with higher PVE ratios as being less risky andfor more likely to enjoy higher growth in the future. A Truc B. False )(4-9) Trend analysis 39, Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year. Trend analysis is one method of examining changes in a finn's performance over time. A. The B. False ) (4-10) Window dressing 40. Which of the following statements is CORRECT? A. Bonowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing" Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of "window dressing." B. Borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing"B. All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code. C. Small corporations that qualify under the Tax Code can elect not to pay corporate taxes, but then cach stockholder must report his or her pro rata shares of the firm's income as personal income and pay taxes on that income. D. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the corporation's income and stockholders were taxed again on this income when it was paid to them as dividends. E. All corporations other than non-profits are subject to corporate income taxes, which are 15% for the lowest amounts of income and 38%% for the highest income amounts. 1 )(3-2) Balance sheet 32. Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 530,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? A. $17.83 B. 518.72 C. $19.66 D. $20.64 E. $21.67 ) (3-3) Income statement 33. Brown Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1.750 of depreciation. It had $9,000 of bonds outstanding that carry a 7,0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before A $4.627 B. 54 870 C. $5.114 D. $5369 E. 55.638 (3-8) MVA 34 Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Hayes' Market Value Added (MVA) is $162 million, what is the company's stock price? A. $65.02 B. $69 49 C. $73.15 D. $77.00 E. $80.85 )(3-9) Corporate faces 35. Your corporation has the following cash flows: Operating income $250.000 Interest received $ 10,000 Interest paid $ 45,000 Dividends received $ 20,000 Dividends paid $ 50,000 If the applicable income tax rate is 40%% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? A $83,980 B. $ 88,400 C. $ 92,820 D.$ 97,461 E. $102,334 ( )(3-9) Carry-back, carry-forwardC. Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase fixed assets is an example of "window dressing" D. Using some of the firm's cash to reduce long-term debt is an example of "window dressing." E. "Window dressing" is any action that does not improve a firm's fundamental long-run position and thus increases its intrinsic value. ) (4-3) Total assets turnover 41. Ryngard Corp's sales last year were $38,000, and its total assets were $16,000. What was its total assets turnover ratio (TATOR A. 204 B. 2.14 C. 2.26 D. 238 E. 249 )(4-4) Times interest earned 42. Ajax Corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500, What was the firm's times-interest-cared (TIE ) ratio? A 4.72 8, 497 C. 5.23 D. 5.51 E. 5.80 )(4-5) Profit margin 43. Royce Corp's sales last year were $280,000, and its net income was $23,000, What win its profit margin? A. 74IN B. TRON C. 821% D. 253% E 9.05%% ) (4-5) Return on total assets 44. River Corp's total assets at the end of last year were $415,000 and its net income was $32,750. What was its return on total assets? A T.HSM B 8.29% C. 8.70% D. 9.14%% E. 9.59% )(4-5) Return on equity 45. Zero Corp's total common equity at the end of last year was $405,000 and its net income was $70,000. What was its ROET A 14821 8. 15.60% C.16.43% D. 17.28% E. 18.15%% )(4-6) Price Earnings ratio 46. Song Corp's mock price at the end of last year was $23 50 and its earnings per share for the year were $1.30. What was its PE ratio" A 17.17 B. 18.08 C. 18.98 D. 19.93 E. 20.93 (4-6) Market Book ratio 47, Hoagland Corp's stock price at the end of last year was $33.50, and its book value per share was $25.00, What was its market/book ratio? A. 134 B 14I C. 148 D. 1.55 E. 1.63 ) (4-7) DuPont equation 48, Precision Aviation had a profit margin of 6.35%%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE? A. 15.23% B. 16.03%% C. 16.88% D. 17.72% E. 18.60% ( )(5-2) Compounding