Micro Advantage issued a $5,250,000 par value, 15-year bond a year ago at 94 (i. e., 94% of par value) with a stated rate of 10%. Today, the bond is selling at 115 (i. e., 115% of par value). If the firm’s tax bracket is 30%, what is the current after-tax cost of this debt?

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e.g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i.e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?