WACC. A firm's target capital structure is 40 percent debt and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firm's marginal tax rate is 20 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium approach to find the cost of retained earnings (note that retained earnings is internally generated equity). The firm uses no preferred stock. Calculate the firm's weighted average cost of capital (WACC).

The federal reserve's organization while all members of the federal reserve board of governors vote at federal open market committee (fomc) meetings, only of the regional bank presidents are members of the fomc. the federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? u.s. banks that cannot borrow elsewhere governments in developing countries during currency crises u.s. state governments when they run short on tax revenues the federal reserve's primary tool for changing the money supply is . in order to decrease the number of dollars in the u.s. economy (the money supply), the federal reserve will government bonds.

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):