Use the following information to answer question 10 and 11: Smashmedia Inc. has two outstanding bond issues: Bond A has a par value of $1000, has a coupon rate of 8% which it pays annually; Bond A matures in 5 Years and is currently trading at $738.06. Bond B matures in 3 year, pays 5% annual coupon, has a par value of $1000, and is currently trading at $791.05. In addition to the two bonds, Smashmedia also has a 10-Year loan with Deutsche Bank at an interest rate of 7%. Assume that the weights for the three borrowing sources are: 25% for Bond A; 25% for Bond B; and 50% for the 10-Year loan. Finally, the tax rate for firm X is T=25%. 1) What is the pre-tax cost of debt for Smashmedia Inc.?
2) What is the after-tax cost of debt for Smashmedia Inc?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

When partners own different portions of the business, the terms should be stated clearly in what document? the articles of incorporation the executive summary the business summary the partnership agreement

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?