The total market value of the common stock of the okefenokee company is $6 million, and the total value of its debt is $4 million. the treasurer estimates that the beta of the stock is currently 1.5 and that the expected risk premium on the market is 6%. the treasury bill rate is 4%. assume for simplicity that okefenokee debt is risk-free and the company does not pay tax. what is the required return on okefenokee stock? estimate the company cost of capital. what is the discount rate for an expansion of the company's present business? suppose the company wants to diversify into the manufacture of rose-colored spectacles. the beta of unleveraged optical manufacturers is 1.2. estimate the required return on okefenokee new venture.

Areview of the ledger of sheridan company at december 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. prepaid insurance $19,661. the company has separate insurance policies on its buildings and its motor vehicles. policy b4564 on the building was purchased on july 1, 2016, for $13,290. the policy has a term of 3 years. policy a2958 on the vehicles was purchased on january 1, 2017, for $8,586. this policy has a term of 18 months. 2. unearned rent revenue $468,720. the company began subleasing office space in its new building on november 1. at december 31, the company had the following rental contracts that are paid in full for the entire term of the lease. term (in months) number of leases date monthly rent nov. 1 8 $5,450 6 dec. 1 6 $8,630 4 3. notes payable $43,200. this balance consists of a note for 6 months at an annual interest rate of 7%, dated october 1. 4. salaries and wages payable $0. there are 9 salaried employees. salaries are paid every friday for the current week. 6 employees receive a salary of $620 each per week, and 3 employees earn $755 each per week. assume december 31 is a wednesday. employees do not work weekends. all employees worked the last 3 days of december. prepare the adjusting entries at december 31,2017.