Considering a private placement of equity

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Reference no: EM138215

Q1. The demand for good X is estimated to be Qx

d = 10, 000 - 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the income elasticity of good X is

Q2. ABC Company is considering a private placement of equity with XYZ Insurance Company.

Explain the interaction between ABC Company and XYZ. How will XYZ serve ABC's needs, and how will ABC serve XYZ's needs?

Reference no: EM138215

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