The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities
A B C D E
Tea 120 90 60 30 0
Pots 0 30 60 90 120

Sigma's production possibilities
A B C D E
Tea 40 30 20 10 0
Pots 0 30 60 90 120

On the basis of this information:

a. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots.
b. Sigma should export tea to Gamma, and Gamma should export pots to Sigma.
c. Gamma should export tea to Sigma, and Sigma should export pots to Gamma.
d. Gamma should export both tea and pots to Sigma.

Select the word from the list that best fits the definition sometimes

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

Which of the following is not a consideration when determining your asset allocation