Re: JNU Questions,

Posted by aastha on May 21, 2012; 11:08am
URL: http://discussion-forum.276.s1.nabble.com/JNU-Questions-tp7568334p7568998.html

@ vaibhav :

since Ac is falling then we are before the point minAC=MC . . before this point MC will be first decreasing and then increasing . . .draw the diagram u ll understand

for perpetuity question
Mkt value = 35/1.07 +35/(1.07)sq + 35/(1.07)cube +...........................
              = 1/(1.07) {35 + 35/1.07 + 35/1.07^2 +....................}
              =1/1.07 ( its a GP with a = 35 and r =1/1.07)
calculate it from here u ll get it as 500 . . .option b

n ya you are with that real ER question . . my apologies :)