A farmer owns a plot of ground and sells the right to pump crude oil from his land to a crude oil producer. The crude oil producer agrees to pay the farmer $20 a barrel for every barrel pumped from the farmer's land. Note: if your answers are 1,000 or larger, please use the thousands separator (a comma) in your answer - e. g., 1000 = 1,000. Also do not type in a dollar sign. This will ensure your answer is scored correctly. a. During one year 10,000 barrels are pumped. (1) The farmer receives a payment of $ [a]from the crude oil producer.

(2) The value added by the farmer is $ [b]

b. The crude oil producer sells the 10,000 barrels pumped to a petroleum refiner at a price of $25 a barrel.

(1) The crude oil producer receives a payment of $ [c]from the refiner.

(2) The value added by the crude oil producer is $ [d]c. The refiner employs a pipeline company to transport the crude oil from the farmer's land to the refinery and pays the pipeline company a fee of $1 a barrel for the oil transported.

(1) The pipeline company receives a payment of $ [e]from the refiner.

(2) The value added by the company is $ [f]..​

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

Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount

Read the following paragraph, and choose the best revision for one of its sentences.dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.