Northern Wood Products is an all-equity firm with 21,500 shares of stock outstanding and a total market value of $367,000. Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $33,500 if the economy is normal, $20,000 if the economy is in a recession, and $47,000 if the economy booms. Ignore taxes. Management is considering issuing $92,500 of debt with an interest rate of 9 percent. If the firm issues the debt, the proceeds will be used to repurchase stock. What will the earnings per share be if the debt is issued and the economy is in a recession

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.