Consider the following scenario: suppose a company has 100 million common shares outstanding, and each share sells for $20. we have estimated that the shares have a beta of 1.25, the risk-free rate is 2%, and the expected market return is 6%. the marginal tax rate for this company is 35%. the company also has $1 billion of bonds outstanding and the yield to maturity on these bonds is 4%. the company has a target capital structure of 60% equity and 40% debt. it does not and will not issue preferred stocks in the future. what is the cost of equity for this company?

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?