Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 13 years to maturity that is quoted at 104.5 percent of face value. The issue makes semiannual payments and has a coupon rate of 9 percent. The tax rate is 38 percent. Enter your answers as a percent rounded to 2 decimal places, e. g., enter 32.16% as 32.16, not 0.3216. Hint. Solve for the YTM and adjust for taxes. The after-tax cost of debt is

answer; blank(1); /rises; blank(2); //increases;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.