Every year a new version of the flu vaccine is made using a mixture of strains. The strains are chosen based on surveillance and analysis by experts from the FDA, WHO. and CDC. For other diseases however, such as varicella (chickenpox), the same vaccine is used continually and repeated vaccinations are not necessary. What do you conclude is the important difference between the influenza virus and the varicella zoster virus with regards to vaccinations?

A) Influenza envelope proteins are bound by IgM, while varicella envelope proteins are bound by IgG.
B) Influenza virus has a much higher mutation rate than varicella, leading to frequent antigen changes in the coat proteins.
C) Varicella is attacked by the innate immune system, while influenza is attacked by the acquired immune system.
D) Influenza virus is transmitted through aerosol droplets in the air, while varicella can be transmitted via skin secretions.

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