Review the Budget Comparison Statement for the Food Service Department in a Long-Term Care Home. 1. For each cost center variance state if the variance has a positive or negative impact on the budget and suggest possible reasons for the variance\

2. As a NM, what would your recommendations be if these variances were being used to forecast next years budgetary needs. Remember without valid reasons you cannot just increase a cost center. Think about things like: Who funds that cost center; where will additional monies come from?
3. Justify your recommendations.

Description Total Budget YTD Budget YTD Actual Variance

Wages 454,292 208,974 211,209 (2235)
Benefits 124,930 57,468 60,806 (3,338)
Development 5,000 2,500 - 2,500
Purchased Services 1,000 500 302 198
Supplies 22,000 11,000 11,232 (232)
Raw Food 191,361 95,681 103,250 (7,569)

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