Business law professor debby needed some yard work done. she told her class that she would give $50 to the first person who mowed her yard. she also entered into an agreement with brenda to trim some shrubbery for $40. max went to mow debby's yard. unfortunately, just as he finished mowing, a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches. debby refused to pay max on the basis that the agreement was not in writing and that max ended up being more trouble than he was worth. max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform.
which of the following is an appropriate characterization of the agreement between debby and max?

a. they had a bilateral, express agreement.
b. they had a bilateral, implied agreement.
c. they had a bilateral and unilateral agreement.
d. they had a unilateral, express agreement.
e. they had a unilateral, implied agreement.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g