In this chapter, consumer preferences for various com modities did not change during the analysis. In some situations, however, preferences do change as con- sumption occurs. Discuss why and how preferences might change over time with consumption of these two commodities: a. cigarettes. b. dinner for the first time at a restaurant with a 1. special cuisine.

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?