The aikman company's optimal capital structure calls for 40% debt and 60% common equity. the interest rate on its debt is a constant 12%; its cost of common equity is 18%; and its federal-plus-state tax rate is 40%. aikman has the following investment opportunities: aikman expects to have net income of $7 million. if aikman bases its dividends on the residual policy, what will be its payout ratio?

Which p shifts to consumer in the four cs of the alternate marketing mix? a) promotion b) product c) place d) price

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.