Black river tours has a capital structure of 55 percent common stock, 5 percent preferred stock, and 40percent debt. the firm has a 30 percent dividend payout ratio, a beta of 1.21, and a tax rate of 34 percent. given this, which one of the following statements is correct?
a. the after tax cost of debt will be greater than the current yield-to-maturity on the firm's outstanding bonds.
b. the firm's cost of preferred is most likely less than the firm's actual cost of debt.
c. the firm's cost of equity is unaffected by a change in the firm's tax rate.
d. the cost of equity can only be estimated using the capital asset pricing model.
e. the firm's weighted average cost of capital will remain constant as long as the firm’s capital structure remains constant.

Acompany's income statement showed the following: net income, $145,000 and depreciation expense, $36,300. an examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,500; merchandise inventory increased $22,200; and accounts payable increased $5,500. calculate the net cash provided or used by operating activities. $209,500 $139,000 $176,100 $186,500 $142,100

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Communication comes in various forms. which of the following is considered an old form of communication? a) e-mail b) letter c) skype d) texting