Turnbull co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equality. it has a before-tax cost of debt of 11.1%, and its cost of preferred stock is 12.2%. if turnbull can raise all of its equity capital from retained earnings, its cost of common euity will be 14.7%. however, if it is necessary to raise new common equity, it will carry a cost of 16.8%. if its current tax rate is 40%, how much higher will turnbull’s weighed average cost of capital (wacc) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings?
a) 0.75%
b) 0.90%
c) 0.68%
d) 0.98%

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?