Problem 1 (each part is ½ point) Rollins Corporation is estimating its weighted average cost of capital (WACC). Its target capital structure is 30% debt, 20% preferred stock and 50% common equity. A. Rollins bonds will have a coupon rate of 12%, a par value of $1,000 and 20 years to maturity. The price of the bond is $1,244.03 B. The firm can sell a preferred stock with a dividend of $10. The price of the preferred stock is $80 per share. C. Rollins beta is 2, the risk free rate is 1% and the market risk premium is 8%. D. Rollins last dividend was $2, a growth rate of 10% and common stock is priced at $22. E. Rollins can sell new common stock for $22 per share. F. Tax rate is 40%.

At the end of the year, blossom co. has pretax financial income of $561,000. included in the $561,000 is $73,000 interest income on municipal bonds, $25,000 fine for dumping hazardous waste, and depreciation of $64,400. depreciation for tax purposes is $48,300. compute income taxes payable, assuming the tax rate is 30% for all periods.

On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $