You check the wall street journal and see that cgt stock is currently selling for $7.50 per share and that cgt bonds are selling for $889.50 per bond. these bonds have a 7.25 percent annual coupon rate, with semi-annual payments. the bonds mature in twenty years. the beta for your company is approximately equal to 1.1. the yield on a 6-month treasury bill is 3.5 percent and the yield on a 20-year treasury bond is 5.5 percent. the expected return on the stock market is 11.5 percent, but the stock market has had an average annual return of 14.5 percent during the past five years. cgt is in the 40 percent tax bracket.

29. what is the best estimate of the wacc for cgt?

a. 8.65%

b. 8.92%

c. 9.18%

d. 9.75%

e. 9.83%

Miller company’s total sales are $171,000. the company’s direct labor cost is $20,520, which represents 30% of its total conversion cost and 40% of its total prime cost. its total selling and administrative expense is $25,650 and its only variable selling and administrative expense is a sales commission of 5% of sales. the company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. required: 1. what is the total manufacturing overhead cost? 2. what is the total direct materials cost? 3. what is the total manufacturing cost? 4. what is the total variable selling and administrative cost? 5. what is the total variable cost? 6. what is the total fixed cost? 7. what is the total contribution margin?