Your firm has $500 million of investor-supplied capital, its return on investors' capital (roic) is 15%, and it currently has no debt in its capital structure (i. e., wd = 0). the cfo is contemplating a recapitalization where it would issue debt at an after-tax cost of 10% and use the proceeds to buy back some of its common stock, such that the percentage of common equity in the capital structure (wc) is 1 - wd. if the company goes ahead with the recapitalization, its operating income, the size of the firm (i. e., total assets), total investor-supplied capital, and tax rate would remain unchanged. which of the following is most likely to occur as a result of the recapitalization? a. the roa would increase. b. the roa would remain unchanged. c. the return on investors' capital would decline. d. the return on investors' capital would increase. e. the roe would increase.

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

The role of the credit department includes: a. evaluating customers' credit applications to determine whether they meet the company's approval standards. b. approving all credit applications in order to avoid losing sales. c. collecting cash from customers. d. following unwritten approval standards for processing customers' credit applications.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?