The ABC Corporation has $300,000 of retained earnings available at a cost (kr) of 13%. If it exhausts retained earnings, it must use new common stock at a cost (kn) of 14%. Additionally, the firm expects it can raise up to $400,000 of long-term debt at a cost(ki) of 5.6%; any further use of debt will be at a cost of 8.4%. The firm can issue an unlimited number of shares of preferred stock at a cost (kp) of 10.6%. The target capital structure is 40% L-T debt, 50% common equity, and 10% preferred stock. ABC’s breaking points for WACC calculation is:A) $600,000B) $1,000,000C) $700,000D) Both A & B are correctE) None of the Above

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

What is the difference between an "i" statement and a "you" statement? a. the "i" statement is non-confrontational b. the "you" statement is non-confrontational c. the "i" statement is argumentative d. the "you" statement is neutral in tone select the best answer from the choices provided

Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)