Suppose the market for computer chips is dominated by two firms: intel and amd. intel has discovered how to make superior chips and is considering whether or not to adopt the new technology. adoption would entail a fixed setup cost of f but would increase revenues. however, if intel adopts the new technology, amd can easily copy it at a lower setup cost of f/2. if intel adopts and amd does not, intel would earn $20 in revenues while amd would earn $0. if intel adopts and amd does likewise, each firm will earn $7 in revenues. if intel does not adopt the new technology, it will earn $3 and amd will earn $2. each firm cares only about its own profits. the extensive form representation of the game is shown below. suppose f = 5. then, using backward induction, what prediction do we obtain? a. intel will not adopt the new technology. b. intel will adopt the new technology, and so will amd. c. intel will adopt the new technology, and amd will not adopt it. d. none of the above.

Juniper company uses a perpetual inventory system and the gross method of accounting for purchases. the company purchased $9,750 of merchandise on august 7 with terms 1/10, n/30. on august 11, it returned $1,500 worth of merchandise. on august 26, it paid the full amount due. the correct journal entry to record the merchandise return on august 11 is:

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

How does hipaa address employee’s access to e-phi?