Josiah is the marketing manager in a firm that sells air pollution control systems to the coal-fired power industry. His business is highly competitive, with existing rivalries and new players. Coal-fired power plants are being shut down in favor of substitute forms of energy, e. g., wind and natural gas. Thus, new project opportunities in coal-fired power plants are rare. His clients (electric utility companies) have many choices of providers and technologies. Josiah's firm has long-term pricing agreements with its equipment suppliers, so Josiah knows what external costs his firm will incur on potential new projects. The competitive force that appears to represent the lowest risk to Josiah's firm is:

When selecting stock, some financial experts recommend to look at the opening price go with what you know examine the day’s range, earnings per share, and p/e ratio divide the dividend by the asking price

He management's discussion and analysis (md& a) required in general purpose federal financial reporting is different than that required by gasb of state and local governments in that: a. it includes information about the agency's performance goals and results in addition to financial activities. b. it is outside the general purpose federal financial report and is optional, not required. c. it is a part of the basic financial statements and, as a result, it is audited along with the financial statements. d. there are no significant differences.

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