ExxonMobil has historically had a very low debt-to-equity ratio within the oil industry, but it recently issued $12 billion in new debt to raise capital to buy up distressed rivals. The cost of this debt turns out to have been around 2%. In this problem we'll calculate how this bond issuance may have affected ExxonMobil's cost of capital.

For the sake of this problem, assume that ExxonMobil was an unlevered firm prior to this debt issuance (at the time of the above mentioned debt issuance the debt-to-equity ratio of ExxonMobil was just over 0.1, so ExxonMobil was pretty unlevered at the time). The equity beta of ExxonMobil is 0.85, the risk-free rate of return is 0.5% and the market risk premium is 4%. The EBIT for ExxonMobil is $15 billion, which you can assume will remain constant in perpetuity. The tax rate is 35%, and earnings after taxes are paid out entirely as dividends.

Your task in this problem is to calculate the WACC for ExxonMobil before and after the bond issuance.

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?