Butcher timber company hired your consulting firm to them estimate the cost of equity. the yield on the firm's bonds is 10.50%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 3.85% over a firm's own cost of debt. what is an estimate of the firm's cost of equity from retained earnings?

Recently, it was observed that people have started saving more rather than spending. this has impacted the demand for luxury goods and services. the decline in the demand led to unemployment in the related sectors. what can be a primary solution to reduce the unemployment levels in the country? a. increase the interest rates b. impose fine for savings c. force industries to rehire employees d. reduce the interest rates e. import goods and services

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

You decided to charge $100 for your new computer game, but people are not buying it. what could you do to encourage people to buy your game?