An investment in Pear Computers has an initial value of $5,000. A second investment in Macrosoft Computers has an initial value of $7,500. The Pear stock falls by the same percentage as the Macrosoft stock rises. If the new combined investment value is $13,000, by what percentage did the Pear stock fall and the Macrosoft stock rise

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Weekly sales at nancy's restaurant total $ 84,000. labor required is 420 hours at a cost of $21,000. raw materials used amount to $40,000. what is the partial measure of productivity for labor hours?

Suppose a new "payment technology" allows individuals to make payments using u.s. treasury bonds (i.e., u.s. treasury bonds are immediately cashed when needed to make a payment and that balance is transferred to the payee). how do you think this payment technology would affect the transactions component of the demand for money? a. this would lead to a decreased need to hold cash for transactions; however, the transactions demand for money would remain unchanged. b. this would lead to a decreased need to hold cash for transactions, thus the transactions demand for money would decrease. c. this would lead to an increased need to hold cash for transactions, thus the transactions demand for money would increase. d. this technology would not change the transactions component of the demand for money.