Usf inc. has 50,000 5.4% coupon bonds with $1,000 par value and a maturity date of 30 years. currently the bonds sell for 105 percent of par and makes semi-annual coupon payments. usf inc's common stock current market price is $62.00 and has a beta of 1.52. the current number of shares outstanding are 500,000. usf inc. also has 40,000 shares of preferred stock that currently sales for $90.00. the preferred stock has $100 par value and a coupon rate of 5.2%. currently, the expected market risk premium is 7.0% and the treasury bill is 2.5%. usf inc. believes that their marginal tax rate is 35%. what is the firm's weighted average cost of capital (wacc)?

The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. the amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. if the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (assume that all the money available for investment is invested.)

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number.include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?

What is the sequence of events that could lead to trade surplus