Fit-for-life foods reports the following income statement accounts for the year ended december 31. gain on sale of equipment $ 6,250 depreciation expense—office copier $ 420 office supplies expense 790 sales discounts 15,200 insurance expense 1,240 sales returns and allowances 3,900 sales 225,000 tv advertising expense 3,000 office salaries expense 32,100 interest revenue 660 rent expense—selling space 10,500 cost of goods sold 88,800 sales staff wages 22,400 sales commission expense 13,600 prepare a multiple-step income statement.

Grace period is a period of time before the credit card company starts charging late fees.truefalse

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

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise