Marco plumbing supply has a pre-tax cost of debt of 7.6 percent, a cost of equity of 12.4 percent, and a cost of preferred stock of 8.5 percent. the firm has 410,000 shares of common stock outstanding at a market price of $19 a share. there are 30,000 shares of preferred stock outstanding at a market price of $31 a share. the bond issue has a face value of $550,000 and a market quote of 98.0. the company's tax rate is 32 percent. what is the firm's weighted average cost of capital

answer; ///blank(1); dealers; blank(2); brokers;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.