Avicorp has a $ 10.0 million debt issue outstanding, with a 6.0 % coupon rate. the debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. it is currently priced at 95 % of par value. a. what is avicorp's pre-tax cost of debt? note: compute the effective annual return. b. if avicorp faces a 40 % tax rate, what is its after-tax cost of debt? note: assume that the firm will always be able to utilize its full interest tax shield.

Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery