A financial advisor at Diehl Investments identified two companies that are likely candidates for a takeover in the near future. Eastern Cable is a leading manufacturer of flexible cable systems used in the construction industry, and ComSwitch is a new firm specializing in digital switching systems. Eastern Cable is currently trading at $40 per share, and ComSwitch is currently trading for $25 per share. If the takeovers occur, the financial advisor estimates that the price of Eastern Cable will go to $55 per share and ComSwitch will go to $43 per share. At this point in time, the financial advisor has identified ComSwitch as the higher risk alternative. Assume that a client indicated a willingness to invest a maximum of $50,000 in the two companies. The client wants to invest at least $15,000 in Eastern Cable and at least $10,000 in ComSwitch. Because of the higher risk associated with ComSwitch, the financial advisor has recommended that at most $25,000 should be invested in ComSwitch. a. Formulate a linear programming model that can be used to determine the number of shares of Eastern Cable and the number of shares of ComSwitch that will meet the investment constraints and maximize the total return for investment b. Graph the feasible region. c. Determine the coordinates of each extreme point. d. Find the optimal solution. **Show calculations and explainations for answers!!

Question

06-12-2022
Mathematics

Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

A financial advisor at Diehl Investments identified two companies that are likely candidates for a takeover in the near future. Eastern Cable is a leading manufacturer of flexible cable systems used in the construction industry, and ComSwitch is a new firm specializing in digital switching systems. Eastern Cable is currently trading at $40 per share, and ComSwitch is currently trading for $25 per share. If the takeovers occur, the financial advisor estimates that the price of Eastern Cable will go to $55 per share and ComSwitch will go to $43 per share. At this point in time, the financial advisor has identified ComSwitch as the higher risk alternative. Assume that a client indicated a willingness to invest a maximum of $50,000 in the two companies. The client wants to invest at least $15,000 in Eastern Cable and at least $10,000 in ComSwitch. Because of the higher risk associated with ComSwitch, the financial advisor has recommended that at most $25,000 should be invested in ComSwitch. a. Formulate a linear programming model that can be used to determine the number of shares of Eastern Cable and the number of shares of ComSwitch that will meet the investment constraints and maximize the total return for investment b. Graph the feasible region. c. Determine the coordinates of each extreme point. d. Find the optimal solution. **Show calculations and explainations for answers!!

Sagot :

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.

Which of the following statements about glucose is correct? A.) Glucose is a less stable carbon compound than carbon dioxide is. B.) Glucose is a more stable ca

The Rio Grande River serves as a physical divider between Mexico and Canada. True False 2. The Rio Grande and the Rio Bravo del Norte are two different names fo

Which homeostatic process moves particles against a concentration gradient? A.dynamic equilibrium B.passive transport C.osmosis D.active transport

Match the vocabulary term with its meaning. 1. civilization the study of humans 2. society a highly developed society 3. culture a document produced some time a

Benone would finish mower garden in 8 hours. Pandele would finish in 10 hours mowing same garden. How long would finish mower garden together?

Why was stock bought on margin considered a risky investment? Investors purchased the stocks with little cash down; if the price dropped the investor had to rep

What decision did Lincoln force Davis to make just prior to the beginning of the Civil War?

Who was the Greek mathematician who systematized geometry and wrote a textbook that organized all the existing information about geometry? A. Pythagoras B. Eucl

Which traits are characteristic of single-celled organisms? Choose all answers that are correct. A. have different cells for different tasks B. often derive n

Sagot :

Other Questions