Assume ford motor company is discussing new ways to recapitalize the firm and raise additional capital. its current capital structure has a 25% weight in equity, 10% in preferred stock, and 65% in debt. the cost of equity capital is 13%, the cost of preferred stock is 9%, and the pretax cost of debt is 8%. what is the weighted average cost of capital for ford if its marginal tax rate is 40%?

a) 8.36 %
b) 8.00 %
c) 6.91%
d) 7.27%

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.