Take It All Away has a cost of equity of 11.08 percent, a pretax cost of debt of 5.38 percent, and a tax rate of 39 percent. The company's capital structure consists of 68 percent debt on a book value basis, but debt is 34 percent of the company's value on a market value basis What is the company's WACC? a. 7.91%
b. 12.97%
c. 9.14%
d. 9.75%
e. 8.43%

Navel county choppers, inc., is experiencing rapid growth. the company expects dividends to grow at 19 percent per year for the next 8 years before leveling off at 5 percent into perpetuity. the required return on the company’s stock is 10 percent. if the dividend per share just paid was $1.52, what is the stock price?

How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c. increase prices

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.