Pan american airlines' shares are currently trading at $69.25 each. the yield on pan am's debt is 4% and the firm's beta is 0.7. the tminus bill rate is 4% and the expected return on the market (e (km)) is 9%. the company's target capital structure is 25% debt and 75% equity. pan american airlines pays a combined federal and state tax rate of 35%. what is pan am's cost of equity?

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.