7. debt irrelevance. digital fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. it now announces that it intends to issue $160 million of debt and to use the proceeds to buy back common stock. there are no taxes. (lo16-1) a. what is the expected market price of the common stock after the announcement? b. how many shares can the company buy back with the $160 million of new debt that it will issue? c. what is the market value of the firm (equity plus debt) after the change in capital structure? d. what is the debt ratio after the change in capital structure?

Which is part of the sales process? a. customer retention b. billing c. cost planning d. customer relations

Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. the economist proposes the following relationship: p=a x m - p=price level - m=money supply - a=a composite of other factors, including real gdp, that change very slowly over time. how might an economist gather empirical data to test the proposed relationship between money and the price level? an economist would persuade the federal reserve to change the money supply to various levels, and observe the resulting changes in the price level. unlike researchers in the hard sciences, economists cannot study complex relationships using data. economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy. an economist would look for data on past changes in the money supply, and note the resulting changes in the price level

You wants to open a saving account.which account will grow his money the most