When testing for differences of means, the t-statistic t equals StartFraction Upper Y overbar Subscript m Baseline minus Upper Y overbar Subscript w Over SE left parenthesis Upper Y overbar Subscript m Baseline minus Upper Y overbar Subscript w right parenthesis EndFraction
, where SE left parenthesis Upper Y overbar Subscript m Baseline minus Upper Y overbar Subscript w Baseline right parenthesis equals StartRoot StartFraction s Subscript m Superscript 2 Over n Subscript m EndFraction plus StartFraction s Subscript w Superscript 2 Over n Subscript w EndFraction EndRoot
has:
A. a student t distribution if the population distribution of Y is not normal.
B. cannot be computed unless n Subscript m equals n Subscript w.
C. a normal distribution even in small samples.
D. a student t distribution if the population distribution of Y is normal.

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

Which feature is a characteristic of a corporation?

The following are the current month's balances for abc financial services, inc. before preparing the trial balance. accounts payable $ 10,000 revenue 6,000 cash 3,000 expenses 17,500 furniture 10,000 accounts receivable 14,000 common stock ? notes payable 6,500 what amount should be shown for common stock on the trial balance? a. $48.000b. $12.500c. $27.000d. $28.000