1. Using cost plus pricing what is the price if ATC = $14.50 and the target rate of return is 4 percent?$15.10$49.34$14.5$22.10 2. If Tiger Toys faces a demand curve of P = 85 .25Q and a MC = ATC = 20 then the economic profits would be:$130.00.$6825.00.$2600.00.$4225.00. 3. Using the linear approximation system to estimate the profit maximizing price requires that the managers know the costs of production and:the production function.one price and quantity of demand.two prices and quantities of demand.decision-making process of the marketplace 4. (TCO 2) The purpose of stock valuation is: (Points : 3) to set the fair market price for a given common stock. to determine whether the common stocks value is fairly represented by its market price. of limited value since the efficient market hypothesis proves that all common stock is always fairly priced. to find common stocks whose market price equals the intrinsic value.