On february 1, 2018, arrow construction company entered into a three-year construction contract to build a bridge for a price of $8,180,000. during 2018, costs of $2,060,000 were incurred with estimated costs of $4,060,000 yet to be incurred. billings of $2,560,000 were sent, and cash collected was $2,310,000. in 2019, costs incurred were $2,560,000 with remaining costs estimated to be $3,690,000. 2019 billings were $2,810,000 and $2,535,000 cash was collected. the project was completed in 2020 after additional costs of $3,860,000 were incurred. the company's fiscal year-end is december 31. arrow recognizes revenue over time according to percentage of completion.

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

Which of the following would be an accurate statement about achieving a balanced budget

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.