G Oncore Skate company is focused on maximizing shareholder value. They would like to recapitalize and issue more debt to repurchase common stock. They are considering two alternative capital structures. Use the information provided to complete the calculations. Their current levered beta is 1.1 and their current capital structure is 10% debt and 90% equity. Their current cost of debt is 7.75%. Their effective tax rate is 25%.The yield on a 20-year Treasury bond is 2.59%. The expected return on the stock market is 8.09%. Possible alternative structures (D/E) Cost of debt (rd) 25%/75% 8.0% 35%/65% 8.5% Find the levered beta for each proposed capital structure given here. Note that the company already has debt in their capital structure, so the existing company beta is a levered beta. You first need to solve for the unlevered beta using the current bL and current capital structure. Calculate the cost of equity for each capital structure (current and two proposed) Calculate the cost of capital for each capital structure (current and two proposed) Which is the optimal capital structure (consider the current capital structure as well as the proposed structures). Why is this structure optimal (the best)?

The vaska company buys a patent on january 1, year one, and agrees to pay $100,000 per year for the next five years. the first payment is made immediately, and the payments are made on each january 1 thereafter. if a reasonable annual interest rate is 8 percent, what is the recorded value of the patent? 1. $378,4252. $431,2133. $468,9504. $500,000

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

In a team environment, a coordinator is? a person with expert knowledge or skills in a particular area the team needs. a good listener who works to resolve social problems among teammates. a leader who team members focus on their tasks. a good networker who likes to explore new ideas and possiblities.