The Pacific halibut fishery has been modeled by the differential equation dy dt kyS1 2 y M D where ystd is the biomass (the total mass of the members of the population) in kilograms at time t (measured in years), the carrying capacity is estimated to be M 8 3 107 kg, and k 0.71 per year. (a) If ys0d 2 3 107 kg, find the biomass a year later. (b) How long will it take for the biomass to reach 4 3 107 kg?

Chapter 12 : Cost of Capital Explaining Important More Important 1) Cost of Capital Basics : The cost of various capital sources varies from company to company, and depends on factors such as its operating history, profitability, credit worthiness, etc. In general, newer enterprises with limited operating histories will have higher costs of capital than established companies with a solid track record, since lenders and investors will demand a higher risk premium for the former. Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. Cost of capital includes the cost of debt and the cost of equity. A company uses debt, common equity and p