Dot expects to earn $300,000 in perpetuity before interest and taxes. The company has a debt to value ratio of 30%. The cost of debt is 10%. If the company had no debt, its cost of capital would have been 15%. The firm’s tax rate is 30%. a) What are the value of Dot’s equity and the (firm) value of Dot? b) What is the cost of capital? c) What is the required rate of return on equity?

You are thinking of making your mansion more energy efficient by replacing some of the light bulbs with compact fluorescent bulbs, and insulating part or all of your exterior walls. each compact fluorescent light bulb costs $4 and saves you an average of $2 per year in energy costs, and each square foot of wall insulation costs $1 and saves you an average of $0.20 per year in energy costs.† your mansion has 150 light fittings and 3000 sq ft of uninsulated exterior wall. to impress your friends, you would like to spend as much as possible, but save no more than $750 per year in energy costs (you are proud of your large utility bills). how many compact fluorescent light bulbs and how many square feet of insulation should you purchase? how much will you save in energy costs per year? (if an answer does not exist, enter dne.)

Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?

Individual consumers belong to which step of choosing a target market? possible customers competition demographics communication