Suppose the PKK Corporation has decided in favour of capital restructuring that involves increasing ifs existing 60 million debt to $100 million. The interest rate on debt is 10 percent and expected to increase to 11 percent. The firm currently has 6 million shares outstanding, and the price per share is $20. If the restructuring is expected to increase the ROE, assume no tax, determine the minimum level for EBIT that PKK management must expecting. Ignoring taxes in your anwer.

answer; /// the use of a bank credit card to make purchase;

answer///supply is elastic, and demand is inelastic;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.