Consider the after-tax cash flows below from a project that is being considered by despondus corporation. since the project is an extension of the firm's current business, it carries the same risk as the overall firm. year 0 1 2 3 4 5 cash flow -$344,000 $86,000 $67,000 $111,000 $90,000 $97,000 despondus corporation's common stock is currently priced at $80.03, and there are 856,000,000 shares outstanding. a dividend of $3.29 per share was just paid, and dividends are expected to grow at a constant rate of 7.49% per year. the company has 6,460,000 bonds outstanding that mature in 23 years and are currently priced at $1,072 per bond. the coupon rate is 8.95%, and the bonds make semiannual interest payments. the company's tax rate is 39%. what is despondus corporation's after-tax cost of equity? what is despondus corporation's after-tax cost of debt? what is despondus corporation's weighted average cost of capital (wacc)? what is the net present value of the project? (round to the nearest dollar.) should the project be accepted? explain your answer; a simple 'yes' or 'no' will result in no points for this part of the question.

(4 points) suppose the production function in the solow model is given by yt = ak¯ 3/4 t l 1/4 t . (a) what are the five equations and five unknowns that summarize the solow model? (b) show the transition dynamics in the solow model if ¯sy0 < ¯dk0. make sure you label the axes, curves, initial level of capital and steady-state level of capital. (c) solve for capital, output, capital per person, and output per person in the steady state. (d) if a¯ = 2, l¯ = 4, ¯s = 0.2, and ¯d = 0.05, calculate the steady-state level of capital and output per person.

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups.b. we cannot infer anything from these data since the distribution of salaries is likely right skewed.c. you cannot draw any valid conclusions because the sample sizes are different.d. more students should complete internships because having an internship produces a higher salary.