1.   what affect does a rise in the cost of raw materials have on the cost of a good? (a) a rise in the cost of raw materials lowers the overall cost of production.(b) the good becomes cheaper to produce.(c) the good becomes more expensive to produce.(d) this does not have any affect on the eventual price of a good.2.   when government actions cause the supply of a good to increase, what happens to the supply curve for that good? (a) it shifts to the left.(b) it shifts to the right.(c) it reverses direction.(d) the supply curve is unaffected. answer

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g