On december 18, 2017, stephanie corporation acquired 100 percent of a swiss company for 4.0 million swiss francs (chf), which is indicative of book and fair value. at the acquisition date, the exchange rate was $1.00 = chf 1. on december 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were: cash chf 800,000inventory 1,300,000fixed assets 4,000,000notes payable (2,100,000)stephanie prepares consolidated financial statements on december 31, 2017. by that date, the swiss franc has appreciated to $1.10 = chf 1. because of the year-end holidays, no transactions took place prior to consolidation. a. determine the translation adjustment to be reported on stephanie's december 31, 2017, consolidated balance sheet, assuming that the swiss franc is the swiss subsidiary's functional currency. what is the economic relevance of this translation adjustment? b. determine the remeasurement gain or loss to be reported in stephanie's 2017 consolidated net income, assuming that the u. s. dollar is the functional currency. what is the economic relevance of this remeasurement gain or loss?

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Because the demand for wheat tends to be inelastic. true or false

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be: