A company produces 1,000 packages of chicken feed per month. The sales price is $4.00 per pack. Variable cost is $1.50 per unit, and fixed costs are $1,700 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.50 to $1.90 per unit, and fixed costs will increase by 20%. The company will price the new product at $5 per pack. How will this affect operating income? (Hint: Compare the increase in revenue to the increase in cost.)

Which of the following is a disadvantage of equity alliances when compared to non-equity alliances? 1. they are reflective of weaker ties between firms.2. they do not permit the exchange of explicit knowledge.3. they are more likely to bring about lack of trust and commitment.4. they require significantly higher levels of investment.

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?

What two things do you consider when evaluating the time value of money