Cartwright communications is considering making a change to its capital structure to reduce its cost of capital and increase firm value. right now, cartwright has a capital structure that consists of 20% debt and 80% equity, based on market values. (its d/s ratio is 0.25.) the risk-free rate is 6% and the market risk premium, rm − rrf, is 5%. currently the company's cost of equity, which is based on the capm, is 12% and its tax rate is 40%. what would be cartwright's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity?
a. 13.00%
b. 13.64%
c. 14.35%
d. 14.72%
e. 15.60%

Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product bold. labor costs will go from $7.91 to $8.41 per unit. in addition, their material costs have fallen from $13.66 to $12.66. assume all period costs as reported on baldwin's income statement remain the same. if baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product bold would need to be sold next round to break even on the product?

Select the word from the list that best fits the definition sometimes

Answer the following questions using the information below: southwestern college is planning to hold a fund raising banquet at one of the local country clubs. it has two options for the banquet: option one: crestview country club a. fixed rental cost of $1,000 b. $12 per person for food option two: tallgrass country club a. fixed rental cost of $3,000 b. $8.00 per person for food southwestern college has budgeted $1,800 for administrative and marketing expenses. it plans to hire a band which will cost another $800. tickets are expected to be $30 per person. local business supporters will donate any other items required for the event. which option has the lowest breakeven point?