Integrated Septic Services, is manufacturer of septic tanks whose slogan is "we are number 1 in the number 2 business." The firm is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% indefinately, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings?You have been asked to consider the following set of cash flows (in millions (m)) from a capital budgeting project. Please find the payback period for the series of cash flows. CF0 = -10m CF1 = 1m CF2 = 2m CF3 = 3m CF4 = 3m CF5 = 3m CF6 = 2m

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)