On january 1, 2018 when the effective interest rate was 12%, philips co. issued bonds with a maturity value of $200,000. the stated rate of interest is 12% and the bonds pay interest semi-annually. philips co. paid $2,000 in bond issue costs on this date. if philips co. uses ifrs, the effective interest rate will be: multiple choice cannot be determined based on the information provided. slightly higher than 12%. 12%. slightly lower than 12%.

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.