Deep mines has 14 million shares of common stock outstanding with a beta of 1.15 and a market price of $42 a share. there are 900,000 shares of 9 percent preferred stock outstanding valued at $80 a share. the 10 percent semiannual bonds have a face value of $1,000 and are selling at 91 percent of par. there are 220,000 bonds outstanding that mature in 17 years. the market risk premium is 11.5 percent, t-bills are yielding 7.5 percent, and the firm's tax rate is 32 percent. what discount rate should the firm apply to a new project's cash flows if the project has the same risk as the firm's typical project?

a. 14.59 percent
b. 14.72 percent
c. 15.17 percent
d. 15.54 percent
e. 16.91 percent

Write two goals for yourself that will aid you in pursuing your post-secondary education or training. with this

Which of the following best explains why large companies have an advantage over smaller companies? a. economies of scale make it possible to offer lower prices. b. the production possibilities frontier is wider for a larger company. c. decreasing marginal utility enables more efficient production. d. increasing the scale of production leads to a reduction in inputs.2b2t

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.