Suppose that taggart transcontinental currently has no debt and has an equity cost of capital of 10%. taggart is considering borrowing funds at a cost of 6% and using these funds to repurchase existing shares of stock. assume perfect capital markets. if taggart borrows until they achieved a debt -to-value ratio of 20%, then taggart's levered cost of equity would be closest to: a) 8.0%b) 9.2%c) 10.0%d) 11.0%

rural residential development company and suburban real estate corporation form a joint stock company. the longest duration a joint stock company can be formed for is

What is the relationship between marginal external cost, marginal social cost, and marginal private cost? a. marginal social cost equals marginal private cost plus marginal external cost. b. marginal private cost plus marginal social cost equals marginal external cost. c. marginal social cost plus marginal external cost equals marginal private cost. d. marginal external cost equals marginal private cost minus marginal social cost. marginal external cost a. is expressed in dollars, so it is not an opportunity cost b. is an opportunity cost borne by someone other than the producer c. is equal to two times the marginal private cost d. is a convenient economics concept that is not real

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out