A firm has a market value of equity of $30,000. It borrows $7500 at 8%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?

The practice of extending credit to customers is known as:

A) float. B) trade credit. C) forfaiting. D) discounting.

Following this discovery, Megan starts coming to work late and her productivity begins to suffer. Which of the following is most similar to the scenario mentioned above based on the equity theory?

A) Dawn starts coming to work early and stays late once she learns that the mid-term review is around the corner. B) Greg believes he works harder than any of the other members in his department as they often leave the office before him. C) Lisa starts working longer hours after learning that her co-workers earn less than she does for the same work. D) Myrtle produces a higher number of units to compensate for the lower quality of her output. E) Beth submits her resignation after she was passed over for promotion for the second time.