Which of the following is empirical evidence indicating that the efficient market hypothesis may not always be generally applicable?

What is the advantage of two-tier wage systems?

A. They help in moving jobs out of the country. B. They help in closing down jobs without any legal hassles. C. They cut labor costs without cutting employees' existing salaries. D. They provide more pay to new employees. E. They provide better standards of benchmarking.

XRT, Inc is issuing a $1,000 par value bond that pays 8.5% interest annually. Investors are expected

to pay $1,100 for the 12-year bond. The firm will pay $50 per bond in flotation costs. What is the after-tax cost of new debt if the firm is in the 35% tax bracket? A) 4.70% B) 8.23% C) 7.45% D) 4.55%