【单选题】The price elasticity of demand for cigarettes is 0.4. If government wants to reduce smoking by 10 percent, by how much should it raise the price of cigarettes by imposing a tax? (香烟需求价格弹性为0.4。如果政府想把吸...
【简答题】Usethis information to answer questions 7 through 10. The Sable Co. isconsidering the introduction of a new product. Company management has preparedthe following estimates related to theproject as wel...
【简答题】(This problem is challenging.) Suppose that an individual owed no taxes on the first $10,000 she earned and 15 percent of any income she earned over $10,000. (This is a simplified version of the actua...
【单选题】Morris Industries has a capital structure of 55 percent common stock, 10 percent preferred stock, and 45 percent debt. The firm has a 60 percent dividend payout ratio, a beta of 0.89, and a tax rate o...
A.
The aftertax cost of debt will be greater than the current yield-to-maturity on the firm's bonds
B.
The firm's cost of preferred is most likely less than the firm's actual cost of debt
C.
The firm's cost of equity is unaffected by a change in the firm's tax rate
D.
The cost of equity can only be estimated using the SML approach
【单选题】An individual in the 36 percent tax bracket invests $5,000 in a tax-exempt IRA. If the investment earns 10% annually, what will be the value of the IRA after five years?
【单选题】Phillips Equipment has 80,000 bonds outstanding that are selling at par $1000 . Bonds with similar characteristics are yielding 8 percent. The company also has 750,000 shares of 7 percent preferred st...
【单选题】As of July 7, basic monthly telephone service will increase by $1.50 due to the new federal telecommunication tax, state-to-state long-distance rates will decrease an average of 10 percent.