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Weighted average cost of capital

Jersey devil inc is estimating its WACC. its target capital structure is 20% debt, 20% preferred stock, and 60% equity. its bonds have a 12% coupon, paid semiannually, a current maturity of 20 yrs, and sell for $950. the firm could sell at par $100 preferred stock which pays a 12% annual dividend, but flotation costs of 5% would

GDP - Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI).

1. Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI). (All values are in billions of dollars.) Indicate the components you use in calculating each of your answers. For example, to calculate net ex

Insurance Rates

Medical evidence has strongly shown the correlation between smoking and heart disease. The insurance companies have noticed it too. In fact, suppose that they have compiled data that shows the likely claims to be filed by various classes of smokers. To make the analysis simpler, suppose that the typical client for insurance has

Project evaluation-investments, cash flow, NPV, and IRR: Revenues generated by a new fad product are forecast as follows:c. If the opportunity cost of capital is 12%, what is the project NPV?d. What is the project IRR?

Project Evaluation. Revenues generated by a new fad product are forecast as follows: Year Revenues year 1: $40,000 year 2: $30,000 year 3: $20,000 year 4: $10,000 Thereafter $0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the followi

Formulate the linear programming problem.

4. A sales manager seeks to optimize her advertising budget. Her goal is to obtain 160 million "Exposures" (readers and/or viewers exposed to an ad for the company). Seeking a younger, affluent audience, the firm would like at least 50 million of the exposures to be persons between the ages of 25 and 45. In addition the firm

Indifference curve and budget equation

The task is to use indifference curves and budget constraints to determine which of these two programs to chose. You are to assume that income is equal to $400 per month to spend on long-distance phone service and all other good (D) and that the utility function is U=mD. For each program, calculate the values of m and D that max

Labor Economics: Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.

Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.

Calculating the level of income using the balanced budget multiplier

Please help with the following problem. Assume the government raises taxes by $20 billion and at the same time increases government spending by $20 billion. If the marginal propensity to consume (mpc) = 0.9 and everything else stays constant, according to the expenditure approach we can surmise that the level of income will