Using Capital Asset Pricing Model (CAPM) to recalculate Company A's cost of equity. Then, find the MAXIMUM cost of debt for Company A above to borrow money. You have to use the same WACC you calculated from Problem 5 above to do this problem. 10-year Treasure Bond Annual Rate of Return = 3.00% Stock Beta value = 1.25 S&P 500 Index Expected annual rate of return = 10% Marginal Income Tax Rate = 35% Proportion of Debt to Total Capital = 60% a. 6.10% b. 5.25% c. 5.84% d. 7.05% Problem 5 Company A's cost of capital information is as follows: Stock price per share = 120 Expected Dividends to be paid = Expected growth rate = 2% Debt to total captial ratio = Margin tax rate = 35% Cost of debt = Calculate Company A's after tax WACC. a. 6.10%
b. 7.35%
c. 6.75% 12 60% 5%
d. 6.94%

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)

How did the contribution of the goods producing sector to gdp growth change between 2010 and 2011 a. it fell by 0.3%. b. it fell by 2.3%. c. it rose by 2.3%. d. it rose by 0.6%. the answer is b

When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level