Company baldwin invested $51,960,000 in plant and equipment last year. the plant investment was funded with bonds at a face value of $34,303,515 at 13.6% interest, and equity of $17,656,485. depreciation is 15 years straight line. for this transaction alone which of the following statements are true? five of these are correct which five are correct? .

since the new plant was funded with debt and equity, on the balance sheet retained earnings decreased by $17,656,485, the difference between the investment $51,960,000 and the bond $34,303,515.
depreciation increased by $3,464,000.
on the balance sheet, long term debt changed by $34,303,515.
cash went up when the bond was issued by $34,303,515.
cash was pulled from retained earnings to cover the $17,656,485 difference between the plant purchase and bond issue.
on the balance sheet, plant & equipment increased by $51,960,000.
buying the plant had no net effect on the cash account, because the plant was paid for by the bond plus retained earnings.
cash went down by $51,960,000 when the plant was purchased.

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

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 of merchandise to the supplier before payment was made. 3) the liability was paid within the discount period. 4) all of the merchandise purchased was sold for $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?

Richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.