A company’s last dividend was $1.35 per share and the dividends are expected to grow forever at a constant rate of 6.3% per year. The riskiness of the company’s equity requires that it provide a risk premium of 4.0% per year over the yield on its long-term debt. The stock’s beta is 0.85, the tax rate is 37%, and the market risk premium is 5.7% per year. If the expected market return is 8.8% per year, what is the company’s annual cost of retained earnings financing?

Jagjit company designs and builds retaining walls for individual customers. on august 1, there were two jobs in process: job 93 with a beginning balance of $8,650, and job 94 with a beginning balance of $7,270. jagjit applies overhead at the rate of $9 per direct labor hour. direct labor wages average $16 per hour. data on august costs for all jobs are as follows:

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next

Increases in output and increases in the inflation rate have been linked to