Discussion for maestro

  

Question 1  (Financial mgment)

Weighted Average Cost of Capital (WACC)

Creat a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand and defend your position.

Question 2 (Managerial Economics)

So what is Game Theory and how do businesses uses games?

Here is some help from Dr C.   

https://cdnapisec.kaltura.com/index.php/extwidget/preview/partner_id/956951/uiconf_id/38285871/entry_id/1_x4lxfbpw/embed/dynamic

 

In the text, we consider a sequential-move game in which an entrant is considering entering an industry in competition with an incumbent firm (See Figure 15-1).  There are several possibilities of how this sequential game will be played.  We want to use the Froeb rule of look ahead and reason back.  Can and how does the entrant succeed?  Is the incumbent ever in control of this game?  Hint, the game is the Duopoly game explained in the video on this week’s page.

PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN THIS COURSE.

FOR THE MAXIMUM POSSIBLE CREDIT OF 20 POINTS, YOU MUST COMPLETE ONE POST AND ONE FOLLOW-UP/REPLY.  MAKE SURE BOTH THE POST AND REPLY FOCUS ON THE QUESTIONS ASKED.