Hankins Corporation has 5.1 million shares of common stock outstanding, 294,000 shares of 5.2 percent preferred stock outstanding, par value of $100, and 135,000 5.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $72.30 per share and has a beta of 1.07, the preferred stock currently sells for $103.40 per share, and the bonds have 22 years to maturity and sell for 102.8 percent of par. The market risk premium is 6.3 percent, T-bills are yielding 2.8 percent, and the firm’s tax rate is 22 percent. What is the firm’s market value capital structure?
-market value eight of debt
-market value weight of preferred stock
-market value weight of equity

What is the firm’s cost of each form or financing?
-after tax cost of debt (%)
-cost of preferred stock (%)
-cost of equity (%)

If the firm is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flow?
-weighted average cost of capital (%)

*Please show with/explain*

Hours to produce one unit worker hours to produce yarn country a 8 hours country b 4 hours worker hours to produce fabric counrty a 12 hours country b 13 hours additional worker hours to produce fabric instead of yarn country a ? country b? which of the follow is true of the trade relationship between country a and country b? country a has an absolute advantage in producing yarn and fabric country b has an absolute advantage in producing yarn and fabric country b has a comparative advantage to country a in producing fabric country a has a comparative advantage to country b in producing fabric

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Why is investing in a mutual fund less risky than investing in a particular company’s stock?