Calculate the wacc for ttt. assume ttt is in the 35% tax bracket. ttt has $500 million face value of debt outstanding. the debt has a price of 101: 08, a coupon of 6 ½ % (coupons are paid semi-annually), and a maturity of 10 years. ttt has 20 million shares of stock outstanding. the shares are currently priced at $7.67. the company pays no dividend, but estimates of the company’s beta are 2.1. the current risk-free rate is 3.2%, and the rate of return on the market portfolio is 11.4%.

Which of the following statements accurately describes how costs and benefits are calculated?

Suppose the number of firms you compete with has recently increased. you estimated that as a result of the increased competition, the demand elasticity has increased from –2 to –3 (i.e., you face more elastic demand). you are currently charging $10 for your product. what is the price that you should charge if demand elasticity is -3?

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.