Brian Klaas Consulting, Inc. has capital structure based on 50 percent debt, 15 percent preferred stock, 35 percent common stock. The pre-tax cost of debt 9.4 percent, the cost of preferred is 10.2 percent , and the cost of common stock 17.2 percent. The tax rate is 20 percent. Brian is considering adding a payroll division that is equally risky as the oveeerall company. The cost of forming the new division is $327,000. The expected anual cash flows from the new division are $102,000, $221,000, and $265,000. What is the expected net present value of the investment in the new division.
a. $43,222.
b. $56,878.
c. $78,351.
d. $135,158.
e. $188,152.

Answer the following questions using the data given below. annual percent return on mutual funds (n = 17) last year (x) this year (y) 11.9 15.4 19.5 26.7 11.2 18.2 14.1 16.7 14.2 13.2 5.2 16.4 20.7 21.1 11.3 12.0 –1.1 12.1 3.9 7.4 12.9 11.5 12.4 23.0 12.5 12.7 2.7 15.1 8.8 18.7 7.2 9.9 5.9 18.9

Oceanside marine company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. oceanside uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 2 pound per unit; $ 11 per pound direct labor: 2 hours per unit; $ 19 per hour oceanside produced 2 comma 000 units during the quarter. at the end of the quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 98 comma 100. what is the direct materials cost variance? (round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

The advertisement demonstrates a popular way companies try to sell a product. what should consumers consider when it comes to the price of this product? it includes shipping and handling costs. it takes into account maintenance costs. it explains why this price is a good deal. it makes the full cost appears lower than it is.