Suppose a firm's stock valuation is worth three times its outstanding debt. The firm's stock earns an annual return of 6 percent and pays 8 percent on the outstanding debt. What is the firm's company cost of capital?

When an interest in the people's problems affects the outcome, not the changes themselves, it is known as

a. hawthorne effect b. taylor effect c. laissez faire effect d. groupthink effect

Michelle spends all of her income on mangos and rice. Mangos cost $2 per pound and rice costs $1.50 per pound

If Michelle is spending all of her income and the marginal utility per dollar spent is 20 for the last pound of mangos purchased and 10 for the last pound of rice purchased, then A) Michelle is maximizing utility from her present consumption bundle. B) Michelle should buy more rice and fewer mangos in order to maximize utility. C) Michelle should buy more mangos and less rice to maximize utility. D) None of the above answers is correct.