Each of the following factors affects the weighted average cost of capital (wacc) equation. which of the following factors are outside a firm’s control? check all that apply. tax rate the inflation rate the firm’s capital budgeting decision rules the impact of a firm’s cost of capital on managerial decisions consider the following case: national petroleum refiners corporation (npr) has two divisions, l and h. division l is the company’s low-risk division and would have a weighted average cost of capital of 8% if it was operated as an independent company. division h is the company’s high-risk division and would have a weighted average cost of capital of 14% if it was operated as an independent company. because the two divisions are the same size, the company has a composite weighted average cost of capital of 11%. division l is considering a project with an expected return of 9.5%. should national petroleum refiners corporation (npr) accept or reject the project? reject the project accept the project on what grounds do you base your accept–reject decision? division l’s project should be accepted, since its return is greater than the risk-based cost of capital for the division. division l’s project should be accepted, because its return is less than the risk-based cost of capital for the division.

Medtronic, inc., is a medical technology company that competes for customers with st. jude medical s.c., inc. james hughes worked for medtronic as a sales manager. his contract prohibited him from working for a competitor for one year after leaving medtronic. hughes sought a position as a sales director for st. jude. st. jude told hughes that his contract with medtronic was unenforceable and offered him a job. hughes accepted. medtronic filed a suit, alleging wrongful interference. which type of interference was most likely the basis for this suit? did it occur here? medtronic, inc., is a medical technology company that competes for customers with st. jude medical s.c., inc. james hughes worked for medtronic as a sales manager. his contract prohibited him from working for a competitor for one year after leaving medtronic

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

Which plan offers a tax-free education?