Meric mining inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. the company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. how much was the firm's net income after taxes? meric uses the same depreciation expense for tax and stockholder reporting purposes.

ernst's electrical has a bond issue outstanding with ten years to maturity. these bonds have a $1,000 face value, a 5 percent coupon, and pay interest semiminusannually. the bonds are currently quoted at 96 percent of face value. what is ernst's pretax cost of debt?

Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible." the necklace was worth $10,000, but she already owned more jewelry than she desired.

Which type of market are you in if your company, along with three other companies, controls 95 percent of the total music industry?