Tag, Inc is considering a project in the paper business. It has 8m bond and 2m common shares, a marginal tax rate of 37.5%, and its debt currently has a rate of return of 14%.

R, a publicly traded firm that operates only in the paper business. its market value of equity is 3,800m and market value of debt is 0. It has an equity beta of 1.053 and a marginal tax rate of 37.5%.The risk-free rate is 4.25%, and the market risk premium is 6.7%.
Calculate R’s:
a. asset beta,
b. the project’s equity beta
c. project cost of capital,
d. and the appropriate WACC to use in evaluating the project.

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent

Mr. beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the bb-1 set. (bb-1 stands for body beautiful number 1.) the carrying cost for bb-1 is $5 per set per year. to meet demand, mr. beautiful orders large quantities of bb-1 seven times a year. the stockout cost for bb-1 is estimated to be $50 per set. over the past several years, mr. beautiful has observed the following demand during the lead time for bb-1: demand during lead time probability40 0.150 0.260 0.270 0.280 0.290 0.1total 1.0the reorder point for bb-1 is 60 sets. what level of safety stock should be maintained for bb-1?

Shelby bought her dream car, a 1966 red convertible mustang, with a loan from her credit union. if shelby paid 5.1% and the bank earned a real rate of return of 3.5%, what was the inflation rate over the life of the loan?