Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last 15 months: MonthUnits ProducedProcessing Cost
14,500$38,000
211,000$52,000
312,000$56,000
45,500$40,000
59,000$47,000
610,500$52,000
77,500$44,000
85,000$41,000
911,500$52,000
106,000$43,000
118,500$48,000
1210,000$50,000
136,500$44,000
149,500$48,000
158,000$46,000
1) Find the High-low equation for this company
2) Use the High-low equation to predict the processing cost for month 20 when the company plans to produce 7,000 units
3) Use the High-low equation to predict the processing cost for month 21 when the company plans to produce 10,300 units.

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

What additional information about the numbers used to compute this ratio might be useful in you assess liquidity? (select all that apply) (a) the maturity schedule of current liabilities (b) the average stock price for the industry (c) the average current ratio for the industry (d) the amount of current assets that is concentrated in relatively illiquid inventories

Adding a complementary product to what is currently being produced is a demand management strategy used when: a. capacity exceeds demand for a product that has stable demand. b. price increases have failed to bring about demand management. c. demand exceeds capacity. d. demand exceeds 100 percent. e. the existing product has seasonal or cyclical demand.