Honest abe's is a chain of furniture retail stores. integral designs is a furniture maker and a supplier to honest abe's. honest abe's has a beta of 1.38 as compared to integral designs' beta of 1.12. both firms carry no debt, i. e., are 100% equity-financed. the risk-free rate of return is 3.5 percent and the market risk premium is 8 percent. what discount rate should honest abe's use if it considers a project that involves the manufacturing of furniture?

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear