Given the following, compute the cost of externally generated equity (new equity) using the DCF approach: The par value of the firms outstanding 20 year 8% annual coupon debt is 1,000 and the debt currently has a market value of 800.
The firm's tax rate is 30%.
The current dividend (just paid) is 2.00.
The dividend growth rate is 3%.
The current stock price is 20.00.
New equity flotation costs are 10%.
The risk free rate is 4%.
The market risk premium (Market return - Risk free rate) is 6%.
The security beta is 2.

Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.

You work as the sales manager for a company that sells office supplies to businesses of all sizes. because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on paper, pencils, pens, post-it notes, and other office supplies from the manufacturers. when reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. when you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?