Debreu beverages has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. debreu's pretax cost of equity is 9%. its pretax cost of preferred equity is 7%, and its pretax cost of debt is also 5%. if the corporate tax rate is 35%, what is the weighed average cost of capital?

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold