Han products manufactures 30,000 units of part s-6 each year for use on its production line. at this level of activity, the cost per unit for part s-6 is: direct materials $ 3.60 direct labor 10.00 variable manufacturing overhead 2.40 fixed manufacturing overhead 9.00 total cost per part $ 25.00 an outside supplier has offered to sell 30,000 units of part s-6 each year to han products for $21 per part. if han products accepts this offer, the facilities now being used to manufacture part s-6 could be rented to another company at an annual rental of $80,000. however, han products has determined that two-thirds of the fixed manufacturing overhead being applied to part s-6 would continue even if part s-6 were purchased from the outside supplier. required: what is the financial advantage (disadvantage) of accepting the outside supplier’s offer

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

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it.g