The firm could sell new $1,000 par value bonds with a 7.5% coupon rate and semiannual payments. The bonds would mature in 15 years. The bonds would sell at par, but flotation costs would amount to 3.5% of par value. The firm has a 21% marginal tax rate. What is the firm's cost of debt financing?

Until recently, hamburgers at the city sports arena cost $4.70 each. the food concessionaire sold an average of 13 comma 000 hamburgers on game night. when the price was raised to $5.40, hamburger sales dropped off to an average of 6 comma 000 per night. (a) assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. (b) if the concessionaire had fixed costs of $1 comma 500 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.