Jane and sarah were watching the evening news when viewers were asked to weigh in on the city's proposed tax increase. later in the broadcast, these results were posted. both jane and sarah were skeptical: 68 percent of the viewers supported the tax increase. they wondered how well the type of people who chose to participate would represent the views of all the city's citizens. jane and sarah are demonstratin

Match the terms with the appropriate definition. 1. unpaid work done for a person or an organization lifestyle budget 2. any task that is useful volunteer work 3. a state-required legal document giving employees younger than eighteen years old permission to work work 4. a good or service that is desirable but not necessary want 5. wage amount after deductions are withheld net wage 6. lists the costs of items you choose to spend your money on work permit 7. the people who are both able and willing to work

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.