In land development, builders seek access to additional lots without commitment. Developers want to provide this opportunity, but retain control of the lots in the event that the builder has difficulty selling spec and completed homes. Which of the following is useful to regulate the takedown of lots from a builder? Rolling options Development agreement Growth moratoriums Vesting of development rights
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- b) In the first price sealed bid auction, a player gets a positive payoff by doing bid shadingExplain the tradeoff between biding lower than the value of the object and biding very close to value of the object.explain certain demand?7 Howe, Dewey, Cheatem (HDC) produces parts for airplanes. HDC has two pricing schemes: 1) fixed price (not directly driven by costs) and 2) cost plus (costs plus fixed fee). All parts fabricated by HDC are bespoke to the customer. HDC determines on which basis to charge the customer based on which will provide the highest profit. Is it ethical to choose a price scheme based on which will produce the higher income? Why?
- When is the buyer required to pay their initial deposit? Select one of the following Within the first 5 business days after exchanging contracts At the time of exchanging contracts Before the exchange of contracts At the end of the cooling off periodThe terms shadow price and reduced cost mean the same thing. Your answer: True O False Clear answerAn agreement between two franchisors in which the two franchisors offer their products together is called double franchising.; True or False
- Melbourne has a number of iconic sports venues which host international and domestic sporting events as well as concerts for leading entertainers such as Taylor Swift, Ed Sheeran and Adele. Event promoters (EP) who wish to hold an event at these iconic venues enter into arrangements with the venue operator (VO). The VO has a separate arrangement with a ticketing service provider (TSP) who is responsible for ticket sales to the public. VOs pay the TSPs a fixed administration fee for selling tickets to events at their venues (which the VO passes on to the EP). Ticket buyers separately pay a booking fee to the TSP. TicketSeller is a relatively small company with only 40 staff but it is the leading TSP in Melbourne. It sells approximately 50% of tickets to all events in Melbourne. Most of its ticket sales occur online via its website. TicketSeller’s website is regarded as the ‘go to’ website for customers wishing to buy tickets to upcoming events. TicketSeller also has ticket outlets…7. Three bidders have a private valuation drawn from a uniform distribution on [0,30] for a single item. The valuations are 10, 15 and 20 for bidders 1, 2 and 3 respectively. a) What are the bidders' equilibrium strategies in a second price auction? b) Show that for bidder 2 no deviation from his strategy in a) would be profitable. c) Who wins the auction and how much do they pay? d) If instead the seller uses a first price sealed bid auction, what are the bidders' equilibrium strategies?To acquire a 400,000 square foot industrial park in Boca Raton, Florida at a purchase price of $40 million, an investor put down 40% and borrowed $24 million with a 30-year fully amortizing fixed rate mortgage loan at an annual contract interest rate of 5% payable monthly. The borrower was charged two points by the lender that was deducted from the loan amount at closing. If the monthly payments on the loan were paid on time each month and if the loan was fully repaid at the end of 10 years with no prepayment penalty, what was the effective annual yield on the loan to the payoff date? a.5.28% b.5.38% c.5.18% d.5.08%
- 1.Explain how contracts help to relocate, share and spread risk. 2.How can option contracts to be used for risk management? Explain the meaning of exercise price and option fee.The bargaining zone, or zone of possible agreements (ZOPA), is the range _____. Group of answer choices of overlap between negotiators' reservation points below the seller's reservation point and above the buyer's target point between negotiators' target points above the seller's reservation point and above the buyer's target pointUnder some circumstances, a seller would prefer that the auction design guarantees that the winner is the bidder with the highest valuation, but in other circumstances, the seller would prefer not. Explain why.