The director of capital budgeting for see-saw inc., manufacturers of playground equipment, is considering a plan to expand production facilities in order to meet an increase in demand. he estimates that this expansion will produce a rate of return of 11%. the firm's target capital structure calls for a debt/equity ratio of 0.8. see-saw currently has a bond issue outstanding that will mature in 25 years and has a 7% annual coupon rate. the bonds are currently selling for $804. the firm has maintained a constant growth rate of 6%. see-saw's next expected dividend is $2 (d1), its current stock price is $40, and its tax rate is 40%. should it undertake the expansio? n calculate the cost of bonds. calculate the cost of equity. calculate the wacc

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak

Describe what fixed costs and marginal costs mean to a company.