Simon software co. is trying to estimate its optimal capital structure. right now, simon 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, r m  r rf, 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 simon's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity?

The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.