Afirm has determined its cost of each source of capital and the percentage of each source making up the firm's capital structure: modifyingabove and below start 2 by 1 matrix 1st row 1st column bold start 2 by 1 matrix 1st row 1st column capital structure 2nd row 1st column source of capital proportions after minus tax cost endmatrix 2nd row 1st column start 3 by 1 matrix 1st row 1st column long minus term debt 40 % 6 % 2nd row 1st column preferred stock 10 11 3rd row 1st column common stock equity 50 15 endmatrix endmatrix with brackets the weighted average cost of capital is

Castillo corporation, a manufacturer, reports costs for the year as follows: direct materials used $735,000 wages to line workers 510,000 office rent 26,000 indirect materials used 700,000how much is the total period costs for castillo? $735,000 $510,000 $26,000 $700,000

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.